BUS-2 - Persons Subject to Business Tax

Generally, taxpayers that conduct business within any county and/or incorporated municipality in Tennessee should register for and pay business tax. Business tax consists of two separate taxes: the state-level business tax and the municipal-level business tax.

All businesses that are not statutorily exempt must pay the state business tax. This includes businesses with a physical location in the state as well as out-of-state businesses performing certain activities in the state.

Businesses that have a physical business location in a city that has enacted a business tax must pay the municipal-level business tax as well. View the city and county business tax dashboard to see which cities have a business tax.

Reference: Tenn. Code Ann. §§ 67-4-704 and 67-4-705.

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