Tennessee has no individual income tax — the Hall tax on interest and dividends was fully repealed after 2020 — so the CPA calendar centers on the Franchise & Excise (F&E) tax. Unlike most states, Tennessee taxes S corporations and partnerships at the entity level, and there is no separate March pass-through return.
Tennessee Tax Deadlines at a Glance (2026)
Filing | Applies To | Return Due | Extended Due Date |
|---|---|---|---|
Franchise & Excise (FAE170) | C-corps, S-corps, LLCs, LPs, LLPs | April 15, 2026 | November 15, 2026 (7-month) |
Business Tax | Most businesses (gross receipts) | April 15, 2026 | — |
Individual income tax | None | N/A | — |
A key correction: Tennessee has no March pass-through return. S corporations, LLCs, LPs, and LLPs all file the same FAE170 return, due April 15, 2026 — the 15th day of the 4th month — and pay F&E at the entity level. (General partnerships are the one exception; they aren’t subject to F&E.) The F&E extension (Form FAE173) is a 7-month extension to November 15, not the federal six-month October date.
Franchise Tax: Now Net-Worth Only
A major 2024 change: Public Chapter 950 repealed the franchise-tax property measure (Schedule G). For tax years ending on or after January 1, 2024, the franchise tax is computed on net worth only (0.25%, $100 minimum) — the old “greater of net worth or property” test is gone. The state issued roughly $1.4 billion in refunds to about 60,000 taxpayers for prior years. Describe Tennessee franchise tax as net-worth-based, not property-based.
Excise Tax and Business Tax
The excise tax is 6.5% of Tennessee taxable income (net earnings). Separately, Tennessee’s Business Tax is a gross-receipts tax on most businesses selling goods or services, with rates varying by classification, also due April 15 for calendar-year filers. Because there is no owner-level income tax in Tennessee, there is no PTET election to consider.
Estimates, Extensions, and Penalties
Quarterly F&E estimated payments are due April 15, June 15, September 15, 2026, and January 15, 2027 when combined liability was $5,000 or more in both the prior and current year. To secure the extension, pay the lesser of 100% of prior-year or 90% of current-year liability by April 15. The late-payment penalty is 5% per month (max 25%); the interest rate is 11.50% through June 30, 2026.
CPA Action Steps
File all entities (including S-corps and partnerships) on the FAE170 by April 15 — there is no March return
Use the 7-month F&E extension to November 15
Treat franchise tax as net-worth-only (property measure repealed in 2024)
Remember there is no individual income tax or PTET to file
Verify current rates and dates against the Tennessee Department of Revenue (tn.gov/revenue) before filing.