Individual Income Tax Forms
Form INC 250 Individual Income Tax Return
Corporate Income Tax Forms
Form BUS 415 County Business Tax Return
Form BUS 416 Municipal Business Tax Return
Sales Tax Forms
Form SLS-452 Consumer Use Tax Return
Form SLS-450 Revised State and Local Sales and Use Tax Return
Property Tax Forms
Form Application for Inheritance Tax Waiver
Primary Areas of Concern
Residents of Tennessee spend about 8.3% of their hard-earned cash to state taxes. This roughly accounts for $3,120 per capita. Tennessee gets the bulk of its revenue from Sales and income taxes. Tennessee is one of the few states that impose a flat income tax on all citizens. Tennessee's economy is stable despite the recent economic meltdown.
However, the State of Tennessee is faced with the major flood of 2010. Tennessee is easing the tax burden on victims of the flood. Tennessee is among the most dependent states on federal government subsidies and monetary aid. It ranks 20th in this regard. State taxes do not cover all the services with which this state must cope. Low taxes are popular with voters and Tennessee has among the lowest taxes in the nation as a result.
All goods and services sold at retailers apply to the Tennessee sales tax. Tennessee also imposes a use tax. Use taxes apply to merchandise that is imported into the state for sale or use. The Tennessee sales tax applies to food at a rate of 5.5%. Food includes both raw and prepared foods. All other tangible property is taxed at a rate of 7%.
Retailers must pay the Tennessee sales tax. They are responsible for delivering the revenue on a monthly, quarterly, and annual basis. Monthly Tennessee sales tax due dates are on the 20th day of each reporting period. Quarterly due dates are on the 20th of the month following the end of the quarter. Retailers are required to report and deliver Tennessee sales tax revenue on every January 20th.
Tennessee's sales tax system include various selective taxes. Gasoline taxes are imposed upon importation into the state of Tennessee. Fuel tankers carrying Gasoline are required to pay 20 cents per gallon. Tanker trucks carrying Diesel into Tennessee are required to pay three cents less per gallon. Consumption of gas does not apply to the Tennessee sales tax.
Alcoholic beverage wholesalers are taxed at $4.40 per gallon of distilled spirits and wine at 1.21 per gallon. Beer wholesalers pay 20% of the total wholesale price. Tennessee taxes alcohol consumption in places that serve alcohol for immediate consumption.
Clubs, restaurants, bars, etc, have to pay 15% of gross receipts. Tobacco is taxed at 62 cents per pack of twenty cigarettes. Tobacco grown for personal use is exempt from taxation. Tobacco taxes in Tennessee are among the lowest in the United States.
Tennessee income taxes are neither regressive nor progressive; they are imposed at a flat rate of 6%. The Tennessee personal income tax bears only one exemption. If a senior citizen, over age 65, has an annual income below $16,200, he or she is exempt from paying Tennessee income taxes. Tennessee income taxes on corporations is also imposed at a flat rate. 6.5% of all taxable income must go to the state of Tennessee. The personal income tax averages to about $47 dollars in revenue per capita. The corporate income tax averages to about $162 per capita.
Professional Privilege Taxes
Accountants, securities agents, attorneys, architects, medical doctors, lobbyists, veterinarians, professional athletes (NHL, NFL), and several other top earning professionals each owe the state $400 a year.
Tennessee property taxes are considered low for the United States. Tennessee is one of 13 states that do not impose property taxes at the state level. Property taxes are reserved for local governments alone.