Tennessee

What's New



By the Numbers

Personal Income Tax Features (2015)
Range of Tax Rates 6%
Standard Deduction
  • None
  • Personal Exemption $1,250
    Dependent Exemption None
    Earned Income Tax Credit (EITC) None
  • Income tax only applies to interest and dividends
  • Senior citizens with total income under $33,000 (or $59,000 for married couples) are exempt from the tax
  • Corporate Income Tax Features (2015)
    Range of Tax Rates Senior citizens with total income under $33,000 (or $59,000 for married couples) are exempt from the tax
    Income Level at Which Top Rate Applies N/A
    Combined Reporting 6.50%
    Apportionment Factor (Payroll) All
    Apportionment Factor (Property) No
    Apportionment Factor (Sales) 25%
    Sales Tax Features (2015)
    State Sales Tax Rate 7.00%
    Average Local Sales Tax Rate 2.45%
    Average Combined State & Local Sales Tax Rate 9.45%
    State Sales Tax Treatment of Groceries 5.00%
    Local Sales Tax Treatment of Groceries Taxed
    Number of Services Taxed 67 out of 168 surveyed (2007)
    Streamlined Sales Tax Membership Associate
  • Sales tax holiday offered in 2014
  • Sales tax applies to digital goods and services
  • Sales tax holiday offered in 2013
  • Property Tax Features (2015)
  • Does not provide a meaningful homestead exemption or circuit breaker for non-elderly taxpayers.
  • Utilizes split roll system.
  • Other Tax & Revenue Features (2015)
    Gasoline Tax Rate (per gallon) $0.214
    Diesel Tax Rate (per gallon) $0.184
    Cigarette Tax Rate (per pack) $0.62
    Estate or Inheritance Tax Yes, but eliminated in 2016
    Net Lottery Sales Per Capita $168 (2010)
    Tax Policy Oversight
    Tax Expenditure Report Yes
    Tax Incidence Analysis Capability None

    Last updated January 13, 2015