How much is Tennessee professional privilege tax?
State law requires all professional privilege tax returns to be filed electronically. Taxable professionals holding an active license in Tennessee must pay the $400 tax, which is due June 1 each year.
Pursuant to Tennessee Code Annotated 67-4-1701 et seq., certain licensed and/or registered professionals, including BROKER-DEALERS, BROKER-DEALER AGENTS, and INVESTMENT ADVISERS, are subject to an annual $400.00 Professional Privilege Tax.
The $400 professional privilege tax is an annual tax imposed on certain professionals who hold an active license or registration on the June 1 due date, regardless of whether the person practices his or her profession in Tennessee.
The professional privilege tax can be paid through the Tennessee Taxpayer Access Point (TNTAP). This tax can be submitted by creating a TNTAP logon, but it is not required. Submitting Professional Privilege Tax Non-Logon: Click “View Return Links” on TNTAP's homepage.
ON APRIL 27, 2022, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 884, AS AMENDED. AMENDMENT #1 rewrites this bill to eliminate the professional privilege tax for physicians.
In Tennessee, unfortunately, this happens regularly. Thousands of professionals in seven jobs are paying a $400 tax annually for the so-called “privilege” of working, regardless of their income. Tennessee is one of only a handful of states that's taxing professionals, and at a much higher level than others.
Beginning June 1,2023, only the following professions are subject to professional privilege tax: lobbyists; agents, broker-dealers, and investment advisors registered under Title 48 of the Tennessee Code; and attorneys.
A licensee who does not pay the tax is usually assessed a monetary penalty by the Department of Revenue. Continued nonpayment of the tax could result in the revocation of an individual's license.
Corporate income tax is a tax on the net income of corporations. In most cases, only corporations are subject to this tax. Privilege taxes are imposed on businesses for the right to conduct business in a given state.
Tennessee has a statewide sales tax rate of 7%. However, local counties and municipalities can also add their own rates on top of this. The maximum additional rate is 2.75%, bringing Tennessee's maximum sales tax amount to 9.75%.
What states have a professional privilege tax?
| Type of Privilege Tax | Participating State(s) |
|---|---|
| Franchise tax | Alabama Arkansas California* Delaware Georgia Illinois Louisiana Mississippi New York North Carolina Oklahoma Tennessee Texas |
| Transaction privilege tax (TPT) | Arizona |
| State privilege tax (or professional privilege tax) | Tennessee |
The motor vehicle privilege tax levied under this act, when paid, together with full, complete, and explicit performance of and compliance with all provisions of this act by the owner, shall entitle the owner of the motor vehicle for which said tax was paid to operate the vehicle or allow the vehicle to be operated ...
Business tax can be filed and paid online using the Tennessee Taxpayer Access Point (TNTAP).
Restaurant Privilege Tax is 1% of total food sales making a total of 10.75% (9.75% Sales Tax and 1% Restaurant tax to the customer).
Professional services are generally not taxable in Tennessee. However, some computer services are. If an IT consultant installs or 'loads' software in the state, that service is subject to sales tax.
The first way to reduce your taxes as a doctor is to make sure to max out your tax-advantaged accounts. Some accounts to consider each year, if available, include: 401K/403B. 457 (includes both governmental and non-governmental 457(b) plans)
Yes. In Tennessee, PLLCs can render professional services within multiple fields. However, members who participate in these areas of business should be licensed by the leading regulatory agencies in those professions.
Some goods are exempt from sales tax under Tennessee law. Examples include some industrial machinery, agricultural equipment, fuel, and medical supplies.
Services such as grass cutting, trimming, bush trimming, leaf raking, and similar activities are all services performed on real property. Charges for such services are not subject to sales tax.
Overview. Generally, if you conduct business within any county and/or incorporated municipality in Tennessee, and your business grosses $100,000 or more, then you should register for and remit business tax.
Are software licenses taxable in Tennessee?
Software is commonly licensed under agreements that include taxable and nontaxable services. License agreements constitute a lease of tangible personal property under Tennessee law and the payments made pursuant to the license agreements are subject to sales and use tax.
All entities doing business in Tennessee and having a substantial nexus in Tennessee, except for not-for-profits and other exempt entities, are subject to the franchise tax.
Certain Tennessee non-profits are eligible to be exempt from Tennessee state and local sales tax. You will need to complete an application for non-profit sales and use tax exemption and submit it and all required documentation (copies of articles, bylaws, IRS determination)to the Tennessee Department of Revenue.
Tennessee residents do not need to file a state income tax return because there is no personal income tax. The deadline for filing federal income tax returns is April 15, 2024. For help estimating your annual income taxes, use AARP's Tax Calculator.
Because Tennessee taxes do not include personal income, individuals are not subject to income tax on earnings.
