Taxes in Tennessee

Each state’s tax code is a multifaceted system with many moving parts, and Tennessee is no exception. The first step towards understanding Tennessee’s tax code is knowing the basics.

How does Tennessee rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Tennessee’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

1%

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State and Local Individual Income Tax Collections per Capita

$37

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State and Local Tax Burden

7.3%

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Top Corporate Income Tax Rate

6.50%

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State Business Tax Climate Index Ranking

18

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State Sales Tax Rate

7.00%

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Average Local Sales Tax Rate

2.55%

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Combined State and Average Local Sales Tax Rate

9.55%

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State and Local General Sales Tax Collections per Capita

$1103

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State Gasoline Tax Rate (cents per gallon)

27.4¢

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State Cigarette Tax Rate (dollars per 20-pack)

$0.62

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.73%

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State and Local Property Tax Collections Per Capita

$876

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Featured Articles

State Tax Changes Effective July 1, 2020

July 9, 2020

Does Your State Have a Gross Receipts Tax?

April 22, 2020

A Visual Guide to Unemployment Benefit Claims

April 2, 2020

Facts and Figures 2020: How Does Your State Compare?

February 13, 2020

Tax Trends at the Dawn of 2020

January 6, 2020

Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2019

July 24, 2019


Related Articles

New Census Data Shows States Beat Revenue Expectations in FY 2020

State Tax Changes Effective July 1, 2020

Does Your State Have a Gross Receipts Tax?

Tennessee Governor Signs Marketplace Facilitator Bill as Louisiana Considers the Same

A Visual Guide to Unemployment Benefit Claims

Facts and Figures 2020: How Does Your State Compare?

Tennessee’s Governor Lee Pushes to Clear Out Remnants of Income Taxation

Tax Trends at the Dawn of 2020

Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2019

State Tax Changes as of July 1, 2019

Facts and Figures 2019: How Does Your State Compare?

2019 State Business Tax Climate Index

State Tax Changes Taking Effect July 1, 2018

State Tax Changes That Took Effect on January 1, 2018

Protecting Interstate Taxpayers from Discriminatory State Taxation: Illinois Central Railroad Company v. Tennessee Department of Revenue

State Tax Changes Taking Effect July 1, 2017

Income Tax-Free Tennessee Means That Someone Won the Lottery Twice

Lunch Links: Trump Takes Hits from Clinton (Release Tax Returns) and Forbes (Troublesome Pass-Through Rate Reduction); NCSL Calls on Congress for Marijuana Reforms

Lunch Links: Trump likes graduated, not flat tax; Clinton attacks his estate tax position; Libertarian nominee Johnson wants national sales tax as a substitute tax

Lunch Links: House Tax Plan; Marijuana in Massachusetts; and yes Brexit