Tennessee Practice and Procedure
Tennessee reaches more entities than most states, taxing limited liability companies and limited partnerships that pay no entity-level federal income tax, through a franchise and excise regime that has changed materially in recent years. This hub collects the questions that recur for businesses and structures touching the state, with particular attention to what changed and which years each rule governs.
7Tennessee articles
Income and franchise tax
3 articles- Does building a Tennessee facility through contractors create franchise and excise tax nexus before revenue?Yes: a company building its own Tennessee facility is doing business there, so franchise and excise tax returns are due before the first revenue.Law as of Oct 15, 2026
- How is the Tennessee franchise tax computed for an entity holding real estate in the state?For tax years ending on or after January 1, 2024, Tennessee franchise tax is 0.25 percent of apportioned net worth (minimum $100), with no property measure.Law as of Sep 28, 2026
- How does Tennessee source a fulfillment affiliate's service fees under market-based sourcing?Tennessee sources a fulfillment affiliate's fees to the extent its deliveries for affiliated sellers reach Tennessee recipients (Rule 1320-06-01-.42).Law as of Oct 14, 2026
Procedure
1 articleSales and use tax
3 articles- Does a cryptocurrency mining facility qualify for Tennessee's qualified data center exemption?A cryptocurrency mining site can qualify for Tennessee's qualified data center exemption with over $100 million invested and 15 net new high-wage jobs.Law as of Oct 15, 2026
- How does Tennessee's single article tax and local option cap apply to sales of high-value equipment?Tennessee taxes a single article at 7 percent of the full price plus 2.75 percent from $1,600 to $3,200, and local tax usually reaches only the first $1,600.Law as of Oct 13, 2026
- Is Tennessee use tax due on equipment stored on site before a facility is placed in service?Absent an exemption, Tennessee use tax on equipment bought for a Tennessee facility attaches when it is stored there, not when it is placed in service.Law as of Oct 15, 2026
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