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TN

Tennessee Works Tax Act – Small Business Excise Tax Deduction

The Tennessee Works Tax Act creates a $50,000 standard deduction for small businesses to reduce net earnings when calculating Tennessee excise tax, applicable for tax years ending on or after December 31, 2024. Businesses with annual gross sales under $100,000 are also exempt from annual business tax filing.

About this program

Visit the program website for full details.

Eligibility

All Tennessee businesses subject to the excise tax. Businesses with annual gross sales under $100,000 within a county and/or city are exempt from the annual business tax filing obligation under the Tennessee Works Tax Act.

Requirements

  • Must be a Tennessee-based business subject to state excise tax
  • For the $50,000 deduction: applicable to tax years ending on or after December 31, 2024
  • For business tax filing exemption: must have annual gross sales under $100,000 per county/city