Franchise Tax

Tennessee Franchise Tax Filing Information

Tennessee has a Franchise Tax that applies to all Corporations, LPs, and LLCs doing business in the state. It is typically filed by an accountant, because it is part of what is essentially Tennessee’s state income tax filing for businesses: FAE170 - Franchise & Excise Tax Return.

The Tennessee Department of Revenue has a Franchise and Excise tax section on its website that outlines details about the tax and provides guidance and the forms themselves.

When is it due?

Tennessee Franchise Tax is due on the 15th day of the fourth month following the close of your books and records. That is April 15th if you operate on a calendar year.

How is it calculated?

The franchise tax is 0.25% of the greater net worth or real tangible property in Tennessee, regardless of whether the company is active or inactive. The minimum tax is $100.  

Tennessee provides a schedule on its Franchise & Excise Tax Return form to help calculate the tax.

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