CPA for Nashville, TN Clients: Remote Tax, Payroll and Accounting

We are a Naperville, Illinois CPA firm, and we serve Nashville and Davidson County clients remotely; we have no office in Tennessee. Tennessee's tax story is often summed up as "no income tax," which leaves out the parts that cost business owners money. Nashville adds its own layer, because Metro Nashville and Davidson County are one government with two service districts, and that split shows up in license fees and tax rates.

Tennessee income tax: what ended and what remains

The Department of Revenue says the Hall income tax was imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock, and that it was repealed for tax periods beginning on or after January 1, 2021. Its page tells filers not to file a return for any tax year beginning on or after that date. The Department also says Tennessee has no state income tax on earned income. With the Hall tax gone, a Nashville employee, investor or retiree files no Tennessee personal income tax return. Federal returns, and any other state's return if you earned income elsewhere, still apply; our Tennessee page covers neighboring-state cases.

Business owners are different. Franchise tax is 0.25% of Tennessee net worth and excise tax is 6.5% of Tennessee taxable income, and the return is due on the 15th day of the fourth month after books close. Extensions run seven months. Estimates are required when combined liability was $5,000 or more in both the prior and current years. The Department says corporations, limited partnerships, limited liability companies and business trusts registered or doing business in Tennessee must pay, with a $100 minimum franchise tax. An LLC that owns a Nashville rental or consulting practice should read our guide to LLC tax classification.

Local taxes and filing in Nashville-Davidson County

Property values. The Assessor of Property says the 2025 reappraisal ran on a four-year cycle, with three years of field review and then a revaluation of all property in the fourth. State law sets the ratios used for the bill: residential and farm at 25% of appraised value, commercial and industrial at 40%, and personal property at 30%, according to the Trustee. The Assessor tells anyone appealing the 2026 assessment to provide 2025 sales that support a January 1, 2026 value.

Appeals. For 2026 the Assessor began taking calls to schedule formal hearings with the independent Metropolitan Board of Equalization on May 26 and set a deadline of Friday, June 26, 2026 at 4:00 p.m. The board meets from the first business day of June until equalization is finished. Decisions on hearings held before September 1 were due by mail in mid to late September. If you disagree, you may appeal to the State Board of Equalization within 45 days of the Metro board's mailing date. An informal review with an appraiser comes first. Whichever year you appeal, confirm the dates with the Assessor.

Bills and relief. The Trustee mails statements in the first week of October. Collection runs from October through the following February, and tax not paid in full by the last day of February is subject to interest; partial payments are allowed. For 2026, Tax Relief goes to owners who live on the property and are either 65 or older, or disabled, with 2025 income not above $38,470, or are 100% service-related disabled veterans. Tax Freeze is for owners 65 or older with 2025 income not above $63,470. Income counts for every co-owner on the deed. The Trustee says taxes must be paid in full by April 5, 2027 to qualify.

Short-term rentals. Metro defines a short-term rental property as a dwelling with no more than four sleeping rooms used or advertised for transient occupancy; units rented to the same occupant for more than 30 continuous days are excluded. Metro's collections page says returns are due by the 20th of each month. Owners may also need a business license, depending on gross income.

Businesses and employers

The Davidson County Clerk issues Metro business licenses. According to the chart the Clerk publishes for short-term rental owners, income under $3,000 needs no license, $3,000 to $99,999 needs a minimal activity license that renews annually, and $100,000 or more needs a business tax license. Each costs $30 inside the city's Urban Services District and $15 elsewhere in the county. At $100,000, the owner also files a return with the state. The Department of Revenue says that return is due the 15th day of the fourth month after the fiscal year ends, with a $22 minimum tax per location (the Department's manual says $44 for a location in a city, where both city and state taxes are due). Rates depend on classification and retailer or wholesaler status; for example, Class 1A is 0.1% for a retailer and 0.025% for a wholesaler.

Our business tax preparation work covers these returns, and our state page explains unemployment accounts and sales tax.

The Indian-American community and US-India tax in Nashville

The Census Bureau counts 19,943 Asian Indian residents in the Nashville metro area (1.0%), 5,855 in Davidson County, 8,378 in Williamson County (3.2%), and 4,439 in Franklin (5.1%). The Consulate General of India in Atlanta covers Tennessee and lists visa, passport, OCI and miscellaneous services. Common tax questions include:

• Moving from a state with an income tax. An H-1B or green card holder who moves to Tennessee stops owing state wage tax going forward, but may file a part-year return for the state they left. See H-1B and visa holders.
• Physicians and clinic owners. See physicians and healthcare professionals, where franchise and excise tax can apply to a practice entity.
• Indian mutual funds. Some are passive foreign investment companies; see PFIC funds.
• Treaty positions. See the US-India tax treaty.

How we can help

From Naperville we prepare federal returns, franchise and excise returns, payroll and bookkeeping, and IRS and state notices. Work is by secure upload, phone and video. For a hearing before a Metro board or any matter that needs a Tennessee license or local professional, we will say so. This is general information, not personal advice.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.