Due Dates and Tax Rates
Tax Filing and Payment Extension for Franchise & Excise Tax
On March 20, 2020, the Internal Revenue Service announced a federal income tax extension. Under Tennessee law, the Commissioner is authorized to extend the deadline for filing a return whenever the IRS extends a federal filing date.
Consistent with the IRS, the Tennessee Department of Revenue has extended the due date for filing and paying franchise and excise tax from April 15, 2020 to July 15, 2020. This extension applies to all taxpayers who had a franchise and excise tax return due on April 15, 2020, regardless of whether the due date is the original due date or the due date on extension. It also applies to taxpayers required to renew their franchise and excise tax exemption (filed on Form FAE183) or make an estimated payment on April 15, 2020.
Taxpayers do not need to contact the Department to apply the extension. For more information, read important notice #20-05.
Annual – 15th day of the 4th month following the close of your books and records. For business with a 1/1-12/31 calendar year, this tax is due on April 15th of the following year.
Quarterly estimated payments – 15th day of the fourth, sixth, and ninth months of the current tax year and the 15th day of the first month of the next succeeding tax year, if you have a combined tax liability of $5,000 or more in both the prior and current tax years.
Extension – 6-month extension upon request
Franchise tax – 0.25% of the greater of net worth or real and tangible property in Tennessee. The minimum tax is $100.
Excise tax – 6.5% of Tennessee taxable income