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Taxes & Business Costs

 

The Highlights

  • There are no personal income taxes on wages and salaries in Tennessee.
  • The state Corporate Income Tax rate in Tennessee is 6.5%.
  • According to The Tax Foundation, Tennessee has the lowest state debt per capita in the country, meaning we will have sustainable, low taxes for the foreseeable future.
  • Southern Business and Development Magazine named Tennessee the 2016 State of the Year for Economic Development based on its project totals and the variety of the industry sectors that invested in the state and created jobs. - See more at: http://www.tnecd.com/media/awards/#sthash.oWuIjLBh.dpuf

 

State Taxes

Tax Rate

Sales Tax

7.0% (added to local option sales tax, so total sales tax in Sullivan Co. is 7.0% + 2.25% = 9.25%)

*Exemptions include items bought for resale and manufacturers’ exemption for materials that become a component part of the finished product, containers, labeling and packaging; and materials coming into direct contact with the product and consumed in the manufacturing process.

Property Tax

None

Corporate Excise Tax

6.5% on net income from business conducted in Tennessee

Franchise Tax

Equity Method: $0.25 per $100, or major fraction thereof, of the issued and outstanding capital stock, surplus and undivided profits; minimum $100
Book Value Method: $0.25 per $100 on book value of all real and tangible goods owned or used by the corporation in Tennessee. Same rate applies to finished goods inventory for distribution facilities, but caps at $30 million

Unemployment Compensation Tax

Varies: 0.01% to 10% of first $9,000 of wages paid to each employee in calendar year depending on quoted rate
*New employers: 2.7% other than construction, manufacturing and mining (applies for the first 4 years before moving to an experience-based rate)

 Inventory Tax

 None on finished goods inventory

Personal Income Tax

 No income tax on wages

 Hall Income Tax

Taxable dividend and interest incomes are taxed at the rate of 6%. The first $1,250 on an individual return and the first $2,500 on a joint return are not taxed. Any person 65 years of age or older having a total annual income derived from any and all sources of $26,200 or less, or $37,000 or less for joint filers are completely exempt from the tax.

 

Local Taxes

Property Tax Rate (Residential is Taxed at 25% of Assessed Value, Commercial and Industrial are Taxed at 40% of Assessed Value).

County City School Dist./Fire Dist. Special Rates
County City SSD/Fire Total

Marshall

    $3.2200 $3.2200

Marshall

Lewisburg

  $3.2200 $1.4500 $4.6700

 

Unemployment Tax Rate

  • The Tennessee unemployment rate for new employers is 2.7% on the first $9,000 of wages.

 

Workers Compensation

Click here to read more information on Tennesee's Workers Compensation Reform

 

City of Lewisburg, TN

Lewisburg is a beautiful small town nestled in the hills of Southern Middle Tennessee providing arts and outdoors, access and affordability. It’s a great place to WORK - job growth rate of 3+%; PLAY - parks and recreation system that meets or exceeds national standards in almost every category; LIVE - cost of living index 20% below the national average; and LEARN - school system ranked "exemplary" by the State of Tennessee.

Contact Information

  This email address is being protected from spambots. You need JavaScript enabled to view it.
931.359.1544
  131 East Church Street
Lewisburg, TN 37091

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