Tennessee, does not have an individual state income tax. However, there are other taxes that apply to LLCs, including Business Tax and Franchise & Excise Tax. While Heard does not service these types of taxes, you can remain compliant by using Tennessee Taxpayer Access Point (TNTAP) to submit your tax payment.
Business Tax
Generally, if you conduct business within any county and/or incorporated municipality in Tennessee, and your business grosses $100,000 or more, then you should register for and remit business tax. Business tax consists of two separate taxes: the state business tax and the city business tax. The TNDOR has a great resource Webinar: Business Tax Basics, and an accompanying PDF: Business Tax Basics.
- State: Every classification has its own tax rate, so you must determine if you are required to remit and pay Business Tax and identify your classification.
- County/City: Please use the interactive map Business Tax Comprehensive List or PDF Tennessee Business Tax - County and City List to verify if a business tax is imposed in your city.
The business tax return is due on the 15th day of the fourth month following the end of your fiscal year, typically on April 15.
Franchise & Excise Tax
If you are a corporation, limited partnership, limited liability company, or business trust chartered, qualified, or registered in Tennessee or doing business in this state, then you must register for and pay franchise and excise taxes. If you are a Sole Proprietor or general partnership, you are not subject to this tax. The TNDOR has a great resource Webinar: Franchise & Excise Tax Basics, and an accompanying PDF: Franchise/Excise Tax Basics.
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Franchise tax is 0.25% of the greater net worth or real tangible property in Tennessee. The minimum tax is $100.
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Excise tax is 6.5% of your Tennessee taxable income.
You must file or apply for an extension for this tax by April 15th.
Estimated Tax Payments
Taxpayers are required to make estimated tax payments when there is a combined F&E tax liability of $5,000 or more (after applicable tax credits) for both the prior tax year and the current tax year.
| Payment | Due Date |
| 1st Payment | 15th day of the 4th month of the current taxable year, April 15 |
| 2nd Payment | 15th day of the 6th month of the current taxable year, June 15 |
| 3rd Payment | 15th day of the 9th month of the current taxable year, September 15 |
| 4th Payment | 15th day of the 1st month of the subsequent tax year, January 15 |
How to submit payment
- Go to https://tntap.tn.gov/eservices/
- Login or create a log-on with the Tennessee Department of Revenue online portal (TNTAP). For help, please watch How to Create a TNTAP Logon.
- Register and pay business tax.
- Register and pay franchise and excise tax.
- As these are business taxes, you may use your business bank account and upload a copy of your receipt to your Heard documents.
Avoiding penalties and interest
The delinquency penalty is 5%/month, with a maximum of 25%. A minimum of $15 penalty will be applied to any late filed return. Late estimated payment penalty is asses at 2%/month, with a maximum of 24%, and interest is calculated at the current rate. For the most up to date rates please see GEN-16 – Penalties and Interest – Tennessee Department of Revenue. To request a penalty waiver, please review the following: GEN-19 – Requesting a Penalty Waiver – Tennessee Department of Revenue.