Does Tennessee have a state income tax for payroll?

No. No state or local income taxes are imposed in Tennessee, so there is nothing to withhold from wages at the state level. Employers in Tennessee are required to contribute to unemployment insurance.

What are the state payroll tax obligations?

Payroll tax	Applies in Tennessee?
State income tax withholding	No
Local income tax	No - there are no local taxes in the state of Tennessee
Unemployment insurance	Yes - employer contributions required
Reciprocal agreements with other states	None

How do I register as an employer?

Every employer in Tennessee is required to fill out Form LB-0441, Report to Determine Status, Application for Employer Number.

Complete Form LB-0441.
Mail it to the address listed for the Department of Labor and Workforce Development.
The state of Tennessee determines your liability status for unemployment insurance.
If the employer is liable for unemployment insurance premiums in Tennessee, it is assigned an eight-digit employer account number.

What are the payroll tax filing requirements?

Two forms cover Tennessee unemployment insurance reporting, and they are filed together.

Form	What it covers	When it is due
LB-0456	Premium Report	Quarterly, by the end of the month following the end of a calendar quarter: January 31, April 30, July 31 and October 31
LB-0851	Wage Report	Filed at the same time as the LB-0456 Premium Report

Reports and payments can be submitted online using TNPAWS (the TN Premium and Wage Reporting System), or mailed using the form sent to you by the Tennessee Department of Labor and Workforce Development.

Where can I find more info?

The Department of Labor and Workforce Development handles unemployment insurance taxes, and an Employer Handbook is available for additional information.

Frequently asked questions

Does Tennessee have a state income tax for payroll?

No. No state or local income taxes are imposed in Tennessee, so employers have no state income tax withholding obligation. Employers are still required to contribute to unemployment insurance.

Does Tennessee have reciprocal agreements or local taxes?

No. Tennessee does not have any reciprocal agreements with other states, and there are no local taxes in the state.

How do I register as an employer in Tennessee?

Every Tennessee employer must complete Form LB-0441, Report to Determine Status, Application for Employer Number, and mail it to the address listed for the Department of Labor and Workforce Development. The state uses the form to determine your unemployment insurance liability status, and liable employers are assigned an eight-digit employer account number.

Which Tennessee payroll tax forms do employers file?

Employers file Form LB-0456, the Premium Report, quarterly, and Form LB-0851, the Wage Report, at the same time as the Premium Report. Reports and payments can be submitted online through TNPAWS, the Tennessee Premium and Wage Reporting System, or mailed.