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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 Corporate Income Tax Rate
State Business Tax Climate Index Ranking
Average Local Sales Tax Rate
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