Tax Relief for Small Businesses: Big Changes in Tennessee [Video]

NASHVILLE, Tenn. — Get ready to file your 2023 business tax return! A new law in place is allowing more than 100,000 small businesses to no longer file a return and pay this tax. The Tennessee Works Tax 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 December 31, 2023. 

To make sure everyone knows about 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. Even if a business doesn’t have to pay this tax, it still needs to keep its business …