File Tennessee State Taxes & Get Your TN Tax Refund Faster

Tennessee State Map

Tennessee has no general state income tax but collects something called Hall tax revenue from sources other than residents' wages and salaries. Sources of taxable income like stocks, bonds, and notes receivable are taxed by the state. The rate of tax is 6%. For a single TN tax filer, the first $1250 of income generated from these sources is exempt. For joint tax filers, the amount rises to $2250 before their investment revenue can be taxed. Senior citizens who file as single taxpayers and earn less than $33,000 are exempt from being taxed for this source of income. If they file their Tennessee state taxes jointly, their income level rises to $59,000.

People who are obligated to pay tax to the state for bonds, stocks, accounts receivable, or estates are required to file and pay by April 15 of each year. Taxpayers who are unable to file their tax returns by this date can apply for a 6-month extension by submitting Form INC 251 (Application for Extension of Time to File Individual Income Tax Return) or a copy of the taxpayer's IRS extension request by the original due date (April 15th). Penalty on delinquent tax will accrue at the rate of 5% per month.

TN Property and Estate Taxes

Another source of tax revenue brought into the state comes from the taxation of property like homes and farms. Residential property owners pay a 25% flat tax on their homes and properties each year to the state. Likewise, farm property is also taxed at 25% each year. Property that is used for industrial or commercial purposes incurs a 40% tax while public utility property and business personal property are taxed at 55 and 30% each year, respectively. While the Tennessee has no homestead exemption for the elderly, disabled, or veteran residents, it does have a tax relief program in place to help those individuals who find it difficult to meet this tax obligation. Owners of property in Tennessee must pay their personal property taxes by March 1 of each year.

Tennessee also charges an estate tax on estates that exceed the exemption limit. The state estate tax ranges from 5.5% to 9.5%. The exemption limit in 2014 was $2 million, but rose to $5 million in 2015. Starting in 2016, the state will no longer charge an inheritance tax on estates.

Consumer Use Tax

Tennessee charges a consumer use tax on a variety of popular consumer items. For example, some foods are taxed at a rate of 5.25%. Candy, soda, prepared food, and dietary supplements are taxed at seven%. Likewise, the state charges a seven% tax on other consumer items like clothing or house wares. City and municipal taxes may also be charged for purchases depending on where a person lives in the state.

Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.

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