A Tennessee tax extension almost always means one thing: a seven-month extension to file the franchise and excise tax return. Tennessee has no personal income tax, so individual residents have nothing to extend. For businesses subject to the franchise and excise tax, the extension is automatic if you have paid the lesser of 90% of your current-year liability or 100% of last year’s tax by the original due date. The extension buys time to file. It does not buy time to pay.
Who Actually Needs a Tennessee Extension
Tennessee repealed the Hall Income Tax for tax years beginning on or after January 1, 2021, so residents no longer file a state return on wages, interest, or dividends.1Tennessee Department of Revenue. Hall Income Tax The taxpayers who need to think about extensions are entities that owe the franchise and excise tax: corporations, LLCs, partnerships, and other entities registered with the Secretary of State to do business in Tennessee. Even inactive registered entities owe a $100 minimum franchise tax each year.2Tennessee Department of Revenue. Franchise and Excise Tax If you formed an LLC and never dissolved it, that return still needs to be filed or extended.
What the Extension Gives You
The extension pushes the filing deadline out to the 15th day of the 11th month after the close of the tax year, which is seven months past the original due date on the 15th day of the 4th month.3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty A calendar-year business with an April 15 original deadline gets until November 15 to file.4Tennessee Department of Revenue. Due Dates and Tax Rates
Payment is a different story. Any tax owed is still due on the original date. If you fail to meet the payment threshold, penalties and interest run as though no extension had been granted at all.3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty
What You Must Pay by the Original Due Date
To keep the extension valid, by the original due date you must have paid the lesser of these two amounts:3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty
- 90% of your combined franchise and excise tax liability for the current year, or
- 100% of the franchise and excise tax shown on last year’s return, annualized if that year covered fewer than 12 months.
You only need to hit the smaller of the two. If your business shrank and current-year tax will land well below last year’s, the 90% figure is what matters. If you already have credits or estimated payments on account that cover the threshold, you owe nothing more at the deadline.
Quarterly Estimates Can Do the Work
Businesses with a combined franchise and excise tax liability of $5,000 or more in both the prior and current tax years must make quarterly estimated payments on the 15th day of the 4th, 6th, and 9th months of the current tax year and the 15th day of the 1st month of the following year.4Tennessee Department of Revenue. Due Dates and Tax Rates Each installment must equal the lesser of 25% of the prior year’s combined tax or 25% of 80% of the current year’s liability.3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty If those estimates already satisfy the extension threshold by the original due date, the extension applies automatically without any additional paperwork.5Tennessee Department of Revenue. Application for Extension of Time to File Franchise and Excise Tax Return
How to Request the Extension
What you do at the original due date depends on whether you still owe money.
No Additional Payment Owed
If prior payments and credits already cover the threshold, do nothing at the deadline. When you eventually file the return by the extended date, attach Form FAE 173 or a copy of your federal extension request to it.3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty
A Payment Is Owed
Send the payment by the original due date through the Tennessee Taxpayer Access Point at tntap.tn.gov.6Tennessee Department of Revenue. F&E-9 – Extension for Filing the Franchise and Excise Tax Return TNTAP does not host an electronic FAE 173, but the payment screen has a drop-down to flag the money as an extension payment.5Tennessee Department of Revenue. Application for Extension of Time to File Franchise and Excise Tax Return
Businesses not filing federally as part of a consolidated group can submit either the FAE 173 or a copy of the federal extension with payment. Businesses that file federally as part of a consolidated group must use Form FAE 173.3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty
If you prefer paper, mail FAE 173 with a check to the Tennessee Department of Revenue, Andrew Jackson State Office Building, 500 Deaderick Street, Nashville, TN 37242, ideally by certified mail so you have proof of a timely postmark.5Tennessee Department of Revenue. Application for Extension of Time to File Franchise and Excise Tax Return
Deadlines for Calendar and Fiscal Year Filers
For a calendar-year business, the 2025 return is due April 15, 2026, and the extended deadline is November 15, 2026. The 2026 return is due April 15, 2027, extending to November 15, 2027.4Tennessee Department of Revenue. Due Dates and Tax Rates
Fiscal-year filers use the same formula: original return on the 15th day of the 4th month after year-end, extended return on the 15th day of the 11th month.3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty
Winter Storm Fern Relief
The Department of Revenue extended franchise and excise tax filing and payment deadlines to June 8, 2026, for businesses in federally designated disaster areas affected by Winter Storm Fern. Other Tennessee taxes are being reviewed for relief case by case.7Tennessee Department of Revenue. Important Notice: Tax Filing Extensions: Winter Storm Fern If your business sits in a designated area, confirm your revised deadline with the Department before relying on the standard April 15 date.
What Happens If You Miss the Payment Threshold
Falling short at the original due date exposes you to three separate charges that can stack on the same balance.
The late filing and payment penalty is 5% of the unpaid amount for each 30-day period the tax is delinquent, capped at 25% of the balance. The minimum penalty for a delinquent return is $15 even if no tax is owed.8Justia Law. Tennessee Code 67-1-804 – Delinquency – Dishonor of Check
If you were required to make quarterly estimated payments and any installment came in short, a separate underpayment penalty of 2% per month (or fraction of a month) applies, up to 24%.3Justia Law. Tennessee Code 67-4-2015 – Filing of Returns – Payment of Tax – Penalty
Interest runs on top. From July 2025 through at least June 2027, the annual interest rate on underpaid Tennessee taxes is 11.50%.9Tennessee Department of Revenue. Tax Rates and Interest Rate On a $50,000 unpaid balance, interest alone comes to roughly $480 a month before either penalty is added.
What About the Business Tax on Gross Receipts
Tennessee also levies a separate business tax on gross receipts for businesses grossing $100,000 or more within any county or municipality.10Tennessee Department of Revenue. Business Tax The return is due on the 15th day of the 4th month after your fiscal year ends.11Tennessee Department of Revenue. Due Dates and Tax Rates Published Department of Revenue guidance does not lay out a formal extension process for the business tax the way it does for franchise and excise. Do not assume the same seven-month extension applies. If you need more time on a business tax return, contact the Department directly before the deadline.