An extension to file is not an extension to pay tax.
Tennessee's Hall income tax on interest and dividends was repealed effective for tax years beginning January 1, 2021, so Tennessee now has no individual income tax at all. Businesses subject to the Franchise and Excise Tax get an automatic 7-month extension to file, provided they pay by the original due date the lesser of 90% of the current year's liability or 100% of the prior year's tax shown due. Falling short of that safe harbor causes penalty and interest to apply as if no extension had been granted.
| Item | Detail |
|---|---|
| Individual income tax | None (Hall income tax repealed for tax years beginning January 1, 2021) |
| Franchise & Excise Tax extension | Automatic 7 months |
| Payment safe harbor | Lesser of 90% of the current year's liability or 100% of the prior year's tax shown due, paid by the original due date |
| Authority | Tenn. Code Ann. §67-4-2015(h) |