Tennessee law

Tax Laws in Tennessee.

Q: What is Tennessee's law on no state estate or inheritance tax?

Tennessee has no estate tax and no inheritance tax. (Estate tax repealed effective 2016; inheritance tax repealed 2016)

Tennessee has NO state income tax on wages. The Hall Income Tax on interest and dividends was fully repealed effective January 1, 2021. Sales tax is 7% state (among the higher statewide rates) with local option taxes (combined rates commonly 9.25-9.75%). Corporate Franchise Tax (0.25% on the greater of net worth or real-and-tangible property value) and Excise Tax (6.5% on net earnings) apply to corporations and most LLCs. Property taxes are administered locally and are relatively low. Tennessee has no state estate or inheritance tax.

Last verified: 2026-04-17

State law

Key Tennessee Statutes

No Wage Income TaxTennessee does not tax wages

Tennessee imposes no income tax on wages, salaries, or self-employment earnings.

Hall Income Tax — Repealed (2021)Former Tenn. Code § 67-2-101 et seq. (repealed)

The Hall Income Tax on interest and dividends was phased down and fully repealed effective January 1, 2021. Tennessee is now among the states without any personal income tax.

Corporate Franchise and Excise TaxTenn. Code § 67-4-2001 et seq. (Franchise); § 67-4-2004 et seq. (Excise)

Franchise Tax: 0.25% on the greater of net worth or real/tangible property value. Excise Tax: 6.5% on net earnings. Both apply to most corporations and LLCs doing business in TN.

Sales and Use TaxTenn. Code § 67-6-101 et seq.

7% state sales tax (one of the higher statewide rates). Local option taxes (up to 2.75%) produce combined rates commonly 9.25-9.75%. Food and food ingredients taxed at reduced 4% state rate.

Property TaxTenn. Code § 67-5

Locally assessed. Residential property assessed at 25% of appraised value; commercial at 40%. Relatively low effective rates by national comparison.

No State Estate or Inheritance TaxEstate tax repealed effective 2016; inheritance tax repealed 2016

Tennessee has no estate tax and no inheritance tax.

State law

Official Sources

TN Department of Revenue IRS

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Tennessee.

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Tax Laws in Tennessee.

Key Tennessee Statutes

Official Sources

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