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If you did not have dividend or investment income, then this is a situation where you would not need to file a Tennessee state tax return. You will only need to file a Tennessee state tax return if you received more than $1,250 in taxable interest and dividends ($2,500 if you are married filing jointly).
With a few exceptions, all businesses that sell goods or services 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.
Tennessee does not have an individual income tax. Tennessee has a flat 6.50 percent corporate income tax rate and levies a gross receipts tax. Tennessee has a 7.00 percent state sales tax rate, a max local sales tax rate of 2.75 percent, and an average combined state and local sales tax rate of 9.55 percent.
Tennessee has no state income tax on salaries, wages, bonuses or any other type of work income. Although the state used to tax income earned from interest and dividends, it has repealed this starting with the 2021 tax year.
Tennessee does not tax individuals earned income, so you are not required to file a Tennessee tax return. Since the Hall Tax in Tennessee has ended. Starting with Tax Year 2021 Tennessee will be among the states with no individual income.

People also ask

Tennessee is a tax-friendly state for retirees. Tennessee does not levy a state income tax on earned income including wages, salaries. This also includes retirement incomes such as public and private pensions, Social Security, 401(k) distributions, and withdrawals from retirement accounts, all of which are not taxed.
Tennessee LLC Taxes The franchise tax imposed on LLCs is 0.25 percent of the real and tangible worth or net worth of a property in the state of Tennessee (whichever is greater). The minimum payment for the state franchise tax is $100.
Some customers are exempt from paying sales tax under Tennessee law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.

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