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BUSINESS & OCCUPATION TAX
Every business in the state of Tennessee is required to file revenue tax. The revenue tax is reported and paid to the TN State Department of Revenue either monthly, quarterly or annually depending on your business income. Electronic filing is recommended.
If you are a new business, register with the Department of Revenue first then city and county offices. Once you are registered, you will receive information about filing.
What is the Business and Occupation Tax?
The state of Tennessee revenue tax is a gross receipts tax. It is measured on the value of products, gross proceeds of sale, or gross income of the business.
Tennessee, unlike many other states, does not have an income tax. Tennessee’s revenue tax is calculated on the gross income from activities. This means there are no deductions from the revenue tax for labor, materials, taxes, or other costs of doing business.
What is the Revenue Tax Rate?
The revenue tax rate varies by classification. Once you know which classification your business fits into you can find the rate that corresponds to your classification on the TN State Department of Revenue list of revenue tax rates. If you’re not sure of your classification, see the tax classifications for common business activities page or the list of tax classification definitions.
What Credits are Allowed?
Credits are amounts that have been paid to the Department of Revenue and are not due or are granted by the Legislature for a specific purpose. Credits are subtracted from the revenue tax due on your excise tax return. Credit definitions provide detailed instructions for reporting credits on the tax return.
The Major Revenue Tax Credits are
- Rural County revenue credit for new employees
- High Technology revenue Tax Credit
- Small Business revenue Tax Credit
- Multiple Activities Tax Credit (MATC)
- Credit for hiring unemployed veterans
How do I pay the revenue tax?
The revenue tax is reported and paid on the excise tax return or by electronic filing.
If you are a new business, register with the Department of Revenue first. Once you are registered, you will receive information about filing.
If you are a new business, register with the Department of Revenue first. Once you are registered, you will receive information about filing.
Monthly returns are due on 25th of the following month; quarterly returns are due by the end of the month following the close of the quarter; and annual returns are due January 31st.
1099 MISC PREPARATION
File this form for each person to whom you have paid during the year as a sub-contractor or an independent contractor.
Form 1099-Misc (Miscellaneous Income)
File this formfor each person to whom you have paid during the year:
— at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
— at least $600 in
- rents
- services performed by someone who is not your employee
- prizes and awards
- other income payments
- medical and health care payments
- crop insurance proceeds
- cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
- generally, the cash paid from a notional principal contract to an individual, partnership, or estate
- payments to an attorney or
- any fishing boat proceeds
In addition, use this form to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
Trade or business reporting only
Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements.
