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

3%

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State and Local Individual Income Tax Collections per Capita

$46

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State and Local Tax Burden

7.3%

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Tax Freedom Day

April 7

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Top Corporate Income Tax Rate

6.50%

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State Business Tax Climate Index Ranking

14

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State Sales Tax Rate

7.00%

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Average Local Sales Tax Rate

2.46%

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Combined State and Average Local Sales Tax Rate

9.46%

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State and Local General Sales Tax Collections per Capita

$1330

State Gasoline Tax Rate (cents per gallon)

25.40¢

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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

0.75%

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State and Local Property Tax Collections Per Capita

$863


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June 26, 2018

State Tax Changes That Took Effect on January 1, 2018

January 2, 2018

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

September 6, 2017

State Tax Changes Taking Effect July 1, 2017

June 27, 2017

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

November 28, 2016

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

August 11, 2016

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

August 9, 2016

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

June 24, 2016

Lunch Links: Jock Tax Refunds, Japan Delays Sales Tax, History of the Oleomargarine Excise Tax

May 31, 2016

Lunch Links: Tennessee Repeals Hall Tax, Sanders Spending Plans, Puerto Rico on Calendar

May 23, 2016

Lunch Links: Tennessee Approves Tax Cut, IRS Was More Helpful This Year, Outstanding Women in Tax

April 25, 2016

Success! Tennessee to Phase out the Hall Tax

April 22, 2016

Tennessee Rep Indicted on Cigarette Tax Stamp Scheme

June 19, 2015

Tennessee Policymakers Park Hall Tax Repeal, Raise Exemption Slightly

April 27, 2015

Tennessee Jock Tax Finally Sacked

April 15, 2014

Hall Tax Repeal Would Improve Tennessee Business Tax Climate

February 10, 2014

Pressure Mounts Against “Jock Tax” in Tennessee

December 17, 2013

State and Local Ballot Initiative Results, November 2013

November 6, 2013

Voters Considering Tax Ballot Initiatives Next Tuesday

November 1, 2013

Tennessee Jock Tax Gets Full Court Press

August 7, 2013