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Franchise & Excise Tax

The Department of Revenue recently sent out Notice of Overpayment letters to F&E taxpayers. Please note that the credit balance on letter only reflects the amount that was not claimed as a carry forward credit to the next year. The total amount available on your account can be viewed by logging into your TNTAP account.

Overview

If you are a corporation, limited partnership, limited liability company, or business trust chartered/organized 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.