New tax law is a break for TN small businesses

More than 100,000 small businesses in Tennessee will have one less tax bill starting this year.

As part of the newly passed Tennessee Works Tax Act, businesses with annual gross sales of less than $100,000 within a county or city are no longer liable for a business tax return. The change applies to tax periods ending on or before December 31, 2023. Eligible businesses have been sent letters with instructions on confirming their eligibility.

The new law doesn’t change rules regarding business licenses, which are still required. And for jurisdictions in which a business has total gross sales between $3,000 and $100,000, the business must maintain a minimal activity license from the local county or city.

Find more details on the legislation at the Tennessee Department of Revenue website.

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