SCorpDesk / 2026 S-Corp & QBI Guides / Tennessee (TN) 2026 S-Corp Tax Calculator, PTET Election & Franchise Tax Guide
Tennessee (TN) 2026 S-Corp Tax Calculator, PTET Election & Franchise Tax Guide
What are the 2026 S-Corp tax and PTET rules in Tennessee?
In Tennessee (TN), the 2026 S-Corporation election rule is: TRAP: TN Taxes S-Corps Same as LLCs/C-Corps (6.5% Excise + 0.25% Franchise Tax!). For the Pass-Through Entity Tax (PTET) deduction: Entity-Level 6.5% Excise Tax on Net Earnings. Entity-level franchise/minimum tax: $100 Minimum Franchise Tax (Property Measure Repealed!).
In Tennessee (TN), the 2026 S-Corporation election rule is: TRAP: TN Taxes S-Corps Same as LLCs/C-Corps (6.5% Excise + 0.25% Franchise Tax!). For the Pass-Through Entity Tax (PTET) deduction: Entity-Level 6.5% Excise Tax on Net Earnings. Entity-level franchise/minimum tax: $100 Minimum Franchise Tax (Property Measure Repealed!).
Open Tennessee 2026 S-Corp & 20% Permanent QBI Calculator
2026 Tennessee (TN) S-Corporation Statutory Tax Matrix
| Tennessee S-Corp Compliance Area | 2026 Statutory Rule |
|---|---|
| State S-Corp Election Recognition | TRAP: TN Taxes S-Corps Same as LLCs/C-Corps (6.5% Excise + 0.25% Franchise Tax!) |
| Pass-Through Entity Tax (PTET) Election | Entity-Level 6.5% Excise Tax on Net Earnings |
| Annual Minimum / Franchise Tax | $100 Minimum Franchise Tax (Property Measure Repealed!) |
| Federal Section 199A QBI Deduction | Up to 23% of qualified K-1 income under Public Law 119-21 |
| Home Office & Mileage Deduction Method | Must use an IRC Section 62(c) Corporate Accountable Plan |
Frequently Asked Questions
Does Tennessee require a separate state S-Corp election in 2026?
For Tennessee (TN): TRAP: TN Taxes S-Corps Same as LLCs/C-Corps (6.5% Excise + 0.25% Franchise Tax!).
What is the Tennessee S-Corp franchise or minimum tax for 2026?
In Tennessee: $100 Minimum Franchise Tax (Property Measure Repealed!).