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Below is a snapshot of key features of Tennessee's tax system. (Scroll Down)
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State & Local Revenue (FY10)
- General Revenue, Own-Source (GROS): $28.3 billion
- General Revenue as a Share of Income: 13.0%
- Tax Revenue: $18.2 billion
- Tax Revenue as Share of income: 8.4%
- Personal Income Tax (Share of Tax Revenue): 0.9% (44 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 4.9 % ( 7 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 56.8 % ( 2 out of 51)
- Property Tax (Share of Tax Revenue): 27.6 % ( 39 out of 51)
- Other Taxes (Share of Tax Revenue): 7.6 % (15 out of 51)
Personal Income Tax Features (2012)
- Range of Tax Rates: 6%
- Standard Deduction: None
- Personal Exemption: $1,250
- Dependent Exemption: None
- Earned Income Tax Credit (EITC): None
- Income tax only applies to interest and dividends
Corporate Income Tax Features (2012)
- Range of Tax Rates: 6.50%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: No
- Apportionment Factor (Payroll): 25%
- Apportionment Factor (Property): 25%
- Apportionment Factor (Sales): 50%
Sales Tax Features (2012)
- State Sales Tax Rate: 7.00%
- Average Local Sales Tax Rate: 2.40%
- Average Combined State & Local Sales Tax Rate: 9.40%
- State Sales Tax Treatment of Groceries: 5.25%
- Local Sales Tax Treatment of Groceries: Taxed
- Number of Services Taxed: 67 out of 168 surveyed
- Streamlined Sales Tax Membership: Associate
- Sales tax holiday offered in 2012
Property Tax Features (2012)
- Does not provide a meaningful homestead exemption or circuit breaker for non-elderly taxpayers.
- Utilizes split roll system.
Other Tax & Revenue Features (2012)
- Gasoline Tax Rate (per gallon): $0.214
- Diesel Tax Rate (per gallon): $0.184
- Cigarette Tax Rate (per pack): $0.62
- Estate or Inheritance Tax: Yes, but eliminated in 2016
- Net Lottery Sales Per Capita: $168
Tax Policy Oversight
- Tax Expenditure Report: Yes
- Tax Incidence Analysis Capability: None
Last Updated October 4, 2012
Sources & Glossary
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