Common Tax Accounts Established

Business Tax

Generally, if you conduct business within any county and/or incorporated municipality in Tennessee, then you should register for and remit business tax.  The business tax is a tax on the privilege of doing business by making sales of tangible personal property and services within Tennessee and its local jurisdictions.  There are several different business tax rates that are determined by the taxpayer’s “dominant business activity” and whether the taxpayer is a wholesaler or a retailer.  

More information about business tax is available on our website:

• Business Tax Information:  An overview of the tax that includes information about tax due dates, tax rates, registration, tax filing & payment, tax exemptions and more.  
• Business Tax Manual:  The tax manual provides more comprehensive tax guidance and is a resource to help taxpayers better understand the collection and remittance of business tax.  Chapter 1 provides an extensive introduction and overview of business tax.  
• Business Tax Articles:  Articles contain information that are in response to specific tax or compliance questions.  They are searchable and generally more informal in nature.  

Sales and Use Tax

Generally, the sales tax applies to the retail sale of tangible personal property and certain services such as lodging services, telecommunications services and installation and repair of tangible personal property.   

The use tax is the counterpart to the sales tax. All individuals, as well as businesses operating in the state, must pay use tax when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax except for services and amusements.

More information about sales and use tax is available on our website: 

• Sales and Use Tax Information:  An overview of the tax that includes information about tax due dates, tax rates, registration, tax filing & payment, tax exemptions and more.  
• Sales and Use Tax Manual:  The tax manual provides more comprehensive tax guidance and is a resource to help taxpayers better understand the collection and remittance of sales and use tax.  Chapter 1 provides an extensive introduction and overview of sales and use tax. 
• Sales and Use Tax Articles:  Articles contain information that are in response to specific tax or compliance questions.  They are searchable and generally more informal in nature.  Sales and Use Tax articles have more specialized categories for easier reference.

Franchise & Excise Taxes

If you are a corporation, limited partnership, limited liability company, or business trust chartered, qualified, or registered in Tennessee or doing business in this state, then you must register for and pay franchise and excise taxes. The franchise tax is based on the greater of net worth or the book value of real or tangible personal property owned or used in Tennessee. The excise tax is based on net earnings or income for the tax year.

More information about franchise & excise tax is available on our website:  

• Franchise & Excise Tax Information:  An overview of the taxes that includes information about tax due dates, tax rates, registration, tax filing & payment, tax exemptions and more.  
• Franchise & Excise Tax Manual:  The tax manual provides more comprehensive tax guidance and is a resource to help taxpayers better understand the collection and remittance of franchise & excise taxes.  Chapter 1 provides an extensive introduction and overview of franchise & excise tax.  
• Franchise & Excise Tax Articles:  Articles contain information that are in response to specific tax or compliance questions.  They are searchable and generally more informal in nature.  Franchise & Excise Tax articles have more specialized categories for easier reference.

Alcohol Taxes

Alcoholic beverage, wine, and beer taxes are imposed on entities that manufacture, sell, and/or distribute such beverages in Tennessee.  These taxes assist the state in regulating the alcoholic beverage industry by requiring the industry to submit information regarding the sale and movement of alcohol in the state.  

More information about alcohol taxes can be found on our website:

• Alcoholic Beverages Taxes Information:  An overview of the taxes that includes information about tax due dates, tax rates, registration, tax filing & payment, tax exemptions and more. 
• Alcohol Taxes Manual:  The tax manual provides more comprehensive tax guidance and is a resource to help taxpayers better understand the collection and remittance of alcohol taxes.  Chapter 1 provides an extensive introduction and overview of alcohol taxes.  
• Alcohol Taxes Articles:  Articles contain information that are in response to specific tax or compliance questions.  They are searchable and generally more informal in nature.  

Additional Taxes

Your new business may be subject to one of the additional taxes below.  Click on the tax name for more information.  

• Bail Bond Tax:  This tax is collected and paid by a bail bondsman on each bail bond written from the person who posts the bond on behalf of the accused.  The tax must be collected before the bond is written.  
  
• Bottlers Tax:  If you produce and sell bottled soft drinks in Tennessee or if you import or cause to be imported bottled soft drinks into Tennessee from outside the state, then you are required to register for and pay the bottlers tax.  Bottled soft drinks include all nonalcoholic beverages, except milk, fruit and vegetable juices, and cider, in any kind of container, whether carbonated or not.  Bottlers tax is a type of gross receipts tax.  
• Coin-operated Amusement Tax:  The tax is levied on all coin-operated amusement machines put into use or played by the general public.  
• Fantasy Sports Tax:  Tennessee's fantasy sports tax is a privilege tax imposed at a rate of six percent on all adjusted revenues of a fantasy sports contest offered by a fantasy sports operator to Tennessee consumers.  It applies to fantasy sports operators and not individual players.  Each operator must register with Tennessee's Secretary of State office.  
• Professional Privilege Tax:  Tax for individuals licensed or registered to practice in Tennessee any one of the professions listed here.
• Recordation Tax:  Recordation tax is on two separate privileges: realty transfer tax and mortgage tax.  Realty transfer tax is imposed on all transfers of real property, with certain exceptions, for having a deed, decree or other instrument that shows proof of transfer record.  Mortgage tax is imposed on the recordation of instruments evidencing indebtedness such as mortgages, deeds of trust, conditional sales contracts, and financing statements.  Mortgage tax is paid by the debtor to the county Register of Deeds or the Tennessee Secretary of State depending on the property transferred.  
• Severance Tax:  Tennessee imposes a severance tax on certain substances that are removed from the ground, including coal, mineral, crude oil, and natural gases.
• Tobacco Tax:  Tobacco tax is imposed on every dealer or distributor of tobacco products for the privilege of selling cigarettes and tobacco products in this state.  
• Utilities Tax:  Each person engaged in the business of manufacturing, furnishing, or distributing gas or natural gas, water,  or electric current is subject to tax for the privilege of doing business in this state.  The tax applies on gross receipts derived from intrastate sales to dealers, consumers, municipalities, or other customers.  Utilities tax is a type of gross receipts tax.