TN Tax Rates
Tennessee has the second lowest state and local tax burden per capita, and no income tax on wages.
Excise (state)
6.5% on the net earnings of the company derived from doing business in Tennessee
Franchise (state)
0.25% of the greater of net worth or real and tangible property in Tennessee
Property (local)
The 2016 property tax rates in Tennessee range from $0.9684 to $7.77 per $100 of assessed value
Sales (state)
The sales tax rate on food is 5%. All other tangible personal property, unless specifically exempted, is 7%
Sales (local)
Ranges from 1.50% to 2.75%
Unemployment Insurance (state)
The first $9,000 in wages paid to each employee are subject to this tax. The new employer premium rate for most industries, including manufacturing sector 31, is 2.7%. The rate is higher for construction (7.5%), mining and extraction (5.0%), manufacturing sector 32 (5.0%), and manufacturing sector 33 (6.5%). Minimum and maximum experience rates are 1.0% and 10.6%, respectively.
Tax Incentives
Humphreys County Economic Development has a wide network of resources, from utility providers to state-level economic development agencies, so that we can provide potential employers with the best possible state and local incentive package possible. Below is a summary of Tennessee's available tax incentives.
- FastTrack Infrastructure Program
- FastTrack Job Training Assistance Program
- FastTrack Economic Development Fund
- Job Tax Credit
- Enhanced Job Tax Credit
- Industrial Machinery Tax Credit
- Sales and Use Tax Exemptions
Learn more at tnecd.com