{"place":"Tennessee","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/tennessee","state":{"code":"TN","name":"Tennessee","slug":"tennessee","incomeTax":{"type":"none","flatRate2026":null,"lowestRate2026":null,"topRate2026":null,"topRateStartsSingle":null,"notes":"Tennessee does not tax wages or self-employment income. Its only individual income tax, the Hall tax on interest and dividends, was repealed for tax periods beginning on or after January 1, 2021.","source":"https://www.tn.gov/revenue/taxes/hall-income-tax.html"},"estimatedTax":null,"minimumWage2026":{"standard":null,"tippedCash":2.13,"tipCreditAllowed":true,"notes":"Tennessee has no state minimum wage law, so the federal $7.25 applies to FLSA-covered employers. Tipped employees (more than $30 a month in tips) can be paid a $2.13 cash wage if tips bring them to $7.25 (U.S. DOL table, last updated July 1, 2026).","source":"https://www.dol.gov/agencies/whd/state/minimum-wage/tipped"},"soleProprietorTaxes":[{"name":"Tennessee business tax (gross receipts)","summary":"A tax on gross receipts, owed per county and city where you have $100,000 or more in sales; you then need a standard business license and must file returns. Between $3,000 and $100,000 you only need a $15 minimal activity license and do not pay the tax. The rate depends on the business classification and is a fraction of 1%: for example, 0.1875% for Classification 3 retailers (which includes many service businesses), 0.1% for Classification 4 contractors, and lower rates for wholesalers. The minimum is $22 per location ($44 inside a city that also levies the tax).","source":"https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/Business-Tax-Manual.pdf"},{"name":"Tennessee franchise and excise tax","summary":"Applies to corporations, LLCs, LPs and business trusts, not to unincorporated sole proprietors. A single-member LLC owned by an individual is taxed as its own entity, because Tennessee only disregards SMLLCs owned by a corporation. Excise tax is 6.5% of net earnings and franchise tax is 0.25% of net worth, with a $100 minimum franchise tax for registered entities.","source":"https://www.tn.gov/revenue/taxes/franchise---excise-tax/due-dates-and-tax-rates.html"},{"name":"Tennessee professional privilege tax","summary":"A flat $400 a year, due June 1, for people licensed in Tennessee as attorneys, securities agents, broker-dealers, investment advisers or lobbyists. You pay it only once even if you hold more than one of these licenses.","source":"https://www.tn.gov/revenue/taxes/professional-privilege-tax.html"}],"contractorLaws":[{"name":"Marketplace contractor law (Public Chapter 648, 2018)","summary":"Effective July 1, 2018, people who find work through an app or online marketplace are independent contractors, not employees, if the platform meets set conditions. The conditions include a written contractor agreement, no required hours, freedom to use other platforms and take other work, no required supplies or equipment, and no control over how the work is done. It does not cover rideshare (TNC) drivers or construction services.","source":"https://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=HB1978&GA=110"},{"name":"IRS 20-factor worker classification test (Public Chapter 337, 2019)","summary":"Since January 1, 2020, Tennessee uses the 20 factors in IRS Revenue Ruling 87-41 to decide whether a worker is an employee or a contractor. This applies to state wage and hour law, unemployment insurance, workplace safety (OSHA) and drug-free workplace programs. Workers' compensation keeps its own existing factors.","source":"https://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=HB0539&GA=111"},{"name":"Voluntary Portable Benefit Plan Act (Public Chapter 131, 2025)","summary":"Lets companies, including app-based companies, voluntarily pay into portable benefit accounts for independent contractors without that counting toward employee status. The accounts can fund health insurance, income replacement insurance, life insurance and retirement benefits. Any withholding from the worker's pay must be in a clear written agreement, and the worker must opt in and can opt out at any time.","source":"https://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=SB1377&GA=114"}],"notes":"Tennessee does not tax self-employment income. A gig worker who forms an LLC will still owe the $100 minimum franchise tax, and anyone with $100,000 or more in sales in one county or city owes business tax. The rule that only corporation-owned SMLLCs are disregarded comes from TN DOR Notice #14-12 (https://www.tn.gov/content/dam/tn/revenue/documents/notices/fae/14-12fe.pdf). The $100 minimum franchise tax is stated at https://www.tn.gov/revenue/taxes/franchise---excise-tax.html."},"stateRetirementProgram":{"state":"Tennessee","code":"TN","programName":null,"status":"none","employerMandate":null,"mandateMin":null,"keyDates":null,"covers1099":null,"selfEnroll":"n/a","sourceUrl":"https://cri.georgetown.edu/states","note":"No enacted state-facilitated program.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/tennessee/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/tennessee/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/tennessee/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/tennessee/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/tennessee/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/tennessee/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/tennessee/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}