The state only taxes investment income from stocks and bonds (at a flat rate of 5%). If you have investment income from stocks and bonds (described in detail in the "TN Income Tax" section), you may have to file a Tennessee tax return for that income. However, if you have already filed your return and need to correct or change any information to that return, you will need to file a tax amendment. Click the link below for information on how to amend a Tennessee return.
Tennessee Income Tax Code
TN has no personal income tax code.
Tennessee IRS Late Filing, Tax Payment Penalties
1. Late Filing Penalty: This penalty is imposed when you fail to pay your return by the deadline. It's 5% per month your total taxes due are not submitted, but can't exceed 25% of the total tax due. The minimum penalty must be $15.
2. Late Payment Penalty: This penalty is the same as the late filing penalty.
3. IRS Penalties:
Calculate and Estimate your potential IRS Income Tax Return Penalties
Tennessee has a general 7% sales and use tax rate. Food is taxed at 5.0%, but dietary supplements, prepared food, and candy are taxed at the general sales tax rate. Sales tax is also collected at the local level. Rates vary from 1.5% to 2.75%.
Sales Tax Holiday
From July 24-26, 2020
- Clothing - $100 or less (includes accessories and school uniforms)
- School supplies - $100 or less (includes backpacks, lunch boxes, and art supplies)
- Computers - $1,500 or less
Tennessee Tax Fact:
The state collects a "coin-operated amusement tax." The tax applies to "any coin-or token-operated game, machine, or device, which, as a result of depositing a coin, token, or other object, automatically or through some mechanical or electronic involving skill, chance, or a combination thereof, affords music, amusement, or entertainment without vending any merchandise." This license tax is imposed on all machines put into public play or use. An additional tax is collected per bona fide coin-operated amusement machine owned.
Tennessee Tax Return Correction
Other U.S. States, Territories, and Protectorates.