How does Tennessee's tax code compare? (2024)

Table of Contents
Tennessee Tax Rates, Collections, and Burdens Featured Articles Excise Taxes and Fees on Wireless Services Increase Again in 2022 The Efficiency of State Administration of Local Taxes Cigarette Taxes and Cigarette Smuggling by State, 2020 Do Unto Others: The Case for State Income Tax Reciprocity 2023 State Business Tax Climate Index Where Do People Pay the Most in Property Taxes? Related Articles Excise Taxes and Fees on Wireless Services Increase Again in 2022 The Efficiency of State Administration of Local Taxes Cigarette Taxes and Cigarette Smuggling by State, 2020 States Should Make Full Expensing Permanent to Help Curb Inflation Ranking State Tax Systems: Corporate Taxes Do Unto Others: The Case for State Income Tax Reciprocity The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement” 2023 State Business Tax Climate Index How Do Taxes Affect Interstate Migration? Combined Federal and State Corporate Income Tax Rates in 2022 Where Do People Pay the Most in Property Taxes? Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020) 2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation State and Local Sales Tax Rates, Midyear 2022 State Tax Reform and Relief Enacted in 2022 Vapor Taxes by State, 2022 Does Your State Have a Gross Receipts Tax? Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken Ranking Property Taxes on the 2022 State Business Tax Climate Index State Sales Tax Breadth and Reliance, Fiscal Year 2021

How does Tennessee's tax code compare? (9)

Tennessee Tax Rates, Collections, and Burdens

How does Tennessee’s tax code compare? Tennessee does not have an individual income tax. Tennessee has a 6.50 percent corporate income tax rate and levies a gross receipts tax. Tennessee has a 7.00 percent state sales tax rate, a max local sales tax rate of 2.75 percent, and an average combined state and local sales tax rate of 9.55 percent. Tennessee’s tax system ranks 8th overall on our 2022 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, andTennessee is no exception.The first step towards understanding Tennessee’s tax code is knowing the basics. How doesTennessee collecttax revenue?Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

Top Individual Income Tax Rate

Does Not Have an Individual Income Tax

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State and Local Individual Income Tax Collections per Capita

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State and Local Tax Burden

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Top Corporate Income Tax Rate

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State Business Tax Climate Index Ranking

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State Sales Tax Rate

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See Full Study

Average Local Sales Tax Rate

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Combined State and Average Local Sales Tax Rate

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See Full Study

State and Local General Sales Tax Collections per Capita

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State Gasoline Tax Rate (cents per gallon)

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State Cigarette Tax Rate (dollars per 20-pack)

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

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State and Local Property Tax Collections Per Capita

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Featured Articles

Excise Taxes and Fees on Wireless Services Increase Again in 2022

December 20, 2022

The Efficiency of State Administration of Local Taxes

December 13, 2022

Cigarette Taxes and Cigarette Smuggling by State, 2020

December 6, 2022

Do Unto Others: The Case for State Income Tax Reciprocity

November 16, 2022

2023 State Business Tax Climate Index

October 25, 2022

Where Do People Pay the Most in Property Taxes?

September 13, 2022

Related Articles

Excise Taxes and Fees on Wireless Services Increase Again in 2022

December 20, 2022

The Efficiency of State Administration of Local Taxes

December 13, 2022

Cigarette Taxes and Cigarette Smuggling by State, 2020

December 6, 2022

States Should Make Full Expensing Permanent to Help Curb Inflation

November 29, 2022

Ranking State Tax Systems: Corporate Taxes

November 22, 2022

Do Unto Others: The Case for State Income Tax Reciprocity

November 16, 2022

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

November 3, 2022

2023 State Business Tax Climate Index

October 25, 2022

How Do Taxes Affect Interstate Migration?

October 11, 2022

Combined Federal and State Corporate Income Tax Rates in 2022

September 27, 2022

Where Do People Pay the Most in Property Taxes?

September 13, 2022

Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)

August 25, 2022

2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation

August 2, 2022

State and Local Sales Tax Rates, Midyear 2022

July 19, 2022

State Tax Reform and Relief Enacted in 2022

July 13, 2022

Vapor Taxes by State, 2022

July 5, 2022

Does Your State Have a Gross Receipts Tax?

June 7, 2022

Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken

May 24, 2022

Ranking Property Taxes on the 2022 State Business Tax Climate Index

May 10, 2022

State Sales Tax Breadth and Reliance, Fiscal Year 2021

May 4, 2022

How does Tennessee's tax code compare? (2024)
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