Tennessee Business Tax Calculator
Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Tennessee.
Why calculating business in Tennessee is different
Tennessee has no income tax.
State Income Tax
None
Base Sales Tax
7%
State Min Wage
$7.25 / hr
Abbreviation
TN
Tennessee Business Interactive Tool
This calculator uses the latest 2026 data for Tennessee, including the minimum wage of $7.25 and the specific lack of a state income tax.
Frequently Asked Questions about Tennessee Business
What is the corporate tax rate in Tennessee?
Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Tennessee must also consider unemployment insurance taxes, sales tax collection (7%), and local business licenses.
Do LLCs pay tax in Tennessee?
LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 0% rate. However, Tennessee may also impose an annual LLC franchise fee.