No Income Tax
Tennessee does not have a state income tax.
The state sales tax is 7% for companies or people that distribute, sell, manufacture, or distribute tangible property. Hickman County adds a sales tax of 2.75%.
Sales tax is not levied on
- Raw material for processing
- Purchases, installation and repairs of qualified industrial machinery.
- Machinery and equipment used for the production of electricity using clean energy technology
- Material handling systems for qualified warehouse and distribution facilities purchased during a three-year investment period.
- Certified pollution control equipment for manufacturers
- Qualified industrial supplies
- Computer equipment, peripheral devices and software purchased for a qualified data center with an investment of $250 million
- Containers, packaging and wrapping materials.
- Items purchased for resale
There is reduced sales tax rates for manufacturers' use of energy fuel and water (1.5% vs. 7%), and additional exemptions or credits may be available.
The property Tax rate per $100 of assessed (25%) value in Hickman County is $2.54 (2014) with Centerville adding $0.92 for properties within the city limits. There is no tax on
- Goods-in-transit (free port)
- Finished goods inventories in hands of manufacturers
- Inventories of merchandise for sale