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Franchise & Excise Taxes

Online Filing

Effective January 1, 2014, all franchise and excise tax return filings and payments related to FAE170 must be made electronically. This includes extension requests and estimated payment filings. Click here to file and pay your franchise and excise tax electronically.

Note: If you prepare form FAE170 and do not use a certified software provider and also have apportionment schedules, you cannot file the return online and must instead use paper tax forms. Taxpayers required to file paper forms in this specific situation are not subject to penalty charges for failing to file electronically.

Financial Institutions filing form FAE174 are currently not included in the electronic filing requirements.

You can use the online tax registration application to register a business, add a new location to an existing business, change your business address or close a business account.

Forms and Other Information

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    The Department has an automated program for final franchise and excise tax returns. Once the return is posted, the automated program does certain checks on it to determine if the entity meets the requirements of an office audit. If the entity does not meet the criteria for an office audit, the automated program checks to see if all tax returns have been filed and taxes remitted. If the entity passes these checks, a tax clearance for termination/withdrawal is automatically issued and mailed to the taxpayer. If the entity fails one of these checks, a denial for termination/withdrawal is issued and mailed to the taxpayer. If you have questions about a denial letter, please contact the Franchise and Excise Registration Unit at (615) 741-8999.

Taxes at a Glance

Franchise and excise taxes are privilege taxes imposed on each corporation, limited partnership, limited liability company and business trust chartered/organized in Tennessee or doing business in this state.

Due Dates:

Annual - 15th day of the 4th month following the close of your books and records.
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.
Extension - 6-month extension upon request

Tax Rates:

Franchise tax - .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

For more information, please call:
Statewide toll-free: (800) 397-8395.
Nashville-area and out-of-state: (615) 253-0700

Click here for mailing address and other contact information.