Utilities operated by the United States, cities, or political subdivisions of the state are exempt from the gross receipts tax. Credit is allowed for a ratio of franchise and excise taxes paid. The gross tax is due August 1 each year but may be paid in installments. The business tax is administered by the state Department of Revenue but collected and imposed by local governments. The owners or operators of all for-profit businesses, except manufacturers subject to personal property taxation and professionals, must pay the local business tax for each place of business located in either the county or the city which imposes the business tax.
Due dates vary by classification of taxpayers.
The tax is levied as a substitute for a property tax on inventories. Return to Top of Page Motor Vehicle Registration Motor vehicles in Tennessee are taxed at the following rates. Return to Top of Page Personal Income Tax Tennessee does not tax earned income. All persons or entities domiciled in Tennessee or residing in the state more than six months in a particular tax year must pay the tax if taxable dividends or interest are received. Return to Top of Page Unemployment Insurance Taxes Unemployment compensation taxes are collected by both the federal and state governments, with Tennessee's portion of the tax serving as a credit against a portion of the federal taxes owed.