NASHVILLE, Tenn. (WSMV) – More than 100,000 small businesses in the Volunteer State will no longer have to file a business tax, the Tennessee Department of Revenue (TDR) announced on Monday.

TDR says the Tennessee Works Act eliminated the annual business tax filing obligation for businesses with annual gross sales under $100,000 within a county and/or city.

This change applies to tax periods ending on or after Dec. 31, 2023.

“To help raise awareness of this change, the Department of Revenue recently sent letters with instructions to business owners who may be affected asking them to confirm locations that are no longer subject to business tax,” TDR said.

The department adds that businesses not liable for tax must keep their business licenses current.

“For jurisdiction(s) where a business’ total gross sales are between $3,000 and $100,000, they must obtain a minimum activity license directly from the local county or city jurisdiction,” the department said.

If businesses have locations no longer subject to business tax, they should contact the department at 615-253-0600 or [email protected] to update their accounts.

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