Tennessee · 2027 and beyond
Tennessee in 2027 and beyond: what is already law, and what is still open
Amendment 2 passed: the constitution now bars a state property tax. No income tax; local property taxes are unchanged. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Tennessee Department of Revenue sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Tennessee practitioner
Amendment 2 passed: the constitution now bars a state property tax. No income tax; local property taxes are unchanged. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
| Measure | Result | What it does |
|---|---|---|
| Amendment 2 | Passed | Prohibits the General Assembly from levying a state property tax. Tennessee levies none now. 66.74% yes. |
Unofficial returns. Results become final when the state certifies them, usually by early December.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | There is no individual income tax and no state property tax. |
| The property tax relief income limit for 2026 is $38,470. | |
| Starting with tax year 2027 | Nothing changes for households because of the amendment; county and city property taxes are unaffected. |
| Metro counties may cut their local sales tax on groceries. | |
| 2028 and later, or conditional | A state property tax would now take another constitutional amendment. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Tennessee articles.
What to watch
The 2027 session and the indexed property tax relief limits. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your most recent property tax bill or assessment notice
- Your 2026 federal return, once filed, to set 2027 withholding and estimated payments against it
- Any notice from the county or the state about a 2027 exemption or rate change
Questions people ask
Does anything here change the return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
Are the election results final?
Not yet. The figures on this page are the unofficial returns. The state certifies results in the weeks after the election, and this page will be corrected if anything changes.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Tennessee, after the election
Amendment 2 passed: the constitution now bars a state property tax. No income tax; local property taxes are unchanged.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
Questions about this article in Tennessee are answered by [your practice name] · [your phone] · [your email address]. We’re looking for an EA or CPA in each Tennessee city to hold that city’s seat and take this spot — is that you?
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Sources and where to check
- Tennessee Department of Revenue, HIT-3: Hall Income Tax Repealed Beginning January 1, 2021
- Tennessee Department of Revenue, HIT-4: Hall Income Tax Rate, the 2016–2020 phase-out
- Tennessee Department of Revenue, SUT-13: Sales and Use Tax Rates Overview (7%, 4% on food, 2.75% local maximum, single article)
- Tennessee Department of Revenue, Important Notice 26-19: Davidson County local tax on food reduced to 1.75%, November 1, 2026
- Tennessee Department of Revenue, 2026 sales tax holiday news release (July 31–August 2, 2026)
- Tennessee Department of Revenue, Franchise and Excise Tax: Due Dates and Tax Rates (0.25%, 6.5%, April 15, $5,000 estimate threshold)
- Tennessee Department of Revenue, Family-Owned Non-Corporate Entities (FONCE): the 95% and 66.67% tests
- Tennessee Department of Revenue, FONCE-1: qualification and annual FAE 183 filing, $200 late penalty
- Tennessee Department of Revenue, Obligated Member Entities (the Secretary of State election)
- Tennessee Department of Revenue, 2024 franchise tax changes: Public Chapter 950, Schedule G repeal and refunds
- Tennessee Department of Revenue, Important Notice 25-36: bonus depreciation stays on the TCJA phase-down
- Tennessee Department of Revenue, Business Tax: the $100,000 threshold, state and city parts
- Tennessee Department of Revenue, Business Tax: Due Dates and Tax Rates (classification rates, $22 minimum)
- Tennessee Department of Revenue, business tax threshold raised to $100,000 per jurisdiction (Tennessee Works Tax Act)
- Tennessee Department of Revenue, IT-1: Inheritance Tax Repealed for deaths in 2016 and after
- Tennessee Department of Revenue, Gift Tax repealed January 1, 2012
- Tax Foundation, How Tax Policy Fared on the Ballot in 2026 (unofficial results)