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Professional Privilege Tax

1. Should the professional privilege tax be filed electronically?

Yes. State law requires all professional privilege tax returns and payments to be made electronically, effective January 1, 2013.

To file and pay your professional privilege tax electronically through the Department of Revenue's website, click here.

Click here if you are a company filing and paying for multiple individuals.

2. What is the professional privilege tax?

The professional privilege tax is levied on the privilege of having an active license to practice certain professions, businesses or occupations listed below:

  • Persons registered as lobbyists pursuant to Tenn. Code Ann. Section 3-6-302;
  • Persons licensed or registered under Title 48, Chapter 1, as:
    • brokers;
    • agents; and
    • investment advisors;
  • Persons licensed or registered under Title 62 as:
    • accountants;
    • engineers;
    • architects;
    • landscape architects; and
    • brokers, as defined in Tenn. Code Ann. Section 62-13-102(2)
  • Persons licensed or registered under Title 63 as:
    • chiropractors;
    • dentists;
    • physicians;
    • pharmacists;
    • psychologists;
    • optometrists;
    • veterinarians;
    • audiologists;
    • osteopathic physicians;
    • podiatrists; and
    • speech pathologists
  • Persons licensed as attorneys by the Supreme Court of Tennessee
  • Persons registered as athletic agents pursuant to title 49, chapter 7, part 21
  • Persons employed as players on any franchise of the National Basketball Association (NBA) or National Hockey League (NHL) for more than 10 days in the tax period who are on the roster for any NBA or NHL regular season game within the boundaries of the state.

3. What is the tax rate and when is it due?

The tax rate beginning June 1, 2003, is $400 annually. For tax years prior to June 1, 2003, the tax rate was $200 annually. The tax is due June 1 of each year.

4. What is the fee for persons licensed for more than one profession?

Only one tax is due regardless of the number of licenses a professional may have that are subject to the tax.

5. Are licensed or registered professionals who are inactive or retired subject to the tax?

No. The tax does not apply to those declared inactive or retired pursuant to the regulations of the appropriate licensing board.

6. Can a firm pay the tax for their licensed employees?

Yes. A separate return for each employee, or a listing of the employees names, addresses, and Social Security numbers, must be included with the payment.

7. Where can I find the professional privilege tax laws in the Tennessee Code?

This law is in Tenn. Code Ann. Section 67-4-1701 et seq.