What are the different types of taxes I need to pay in Tennessee?

In Tennessee, residents and businesses are liable for several types of taxes. The main taxes individuals contribute to are sales and use tax, which is imposed on most retail purchases and certain services, such as accommodations and rental cars. Additionally, Tennessee residents pay a state income tax, which is a flat rate of 2% on interest and dividends. Businesses are subject to various taxes, such as the franchise/excise tax, which is based on net worth or income, and the business tax, which is a flat fee for certain entities. Other taxes include inheritance tax, gift tax, and the Hall income tax on interest and dividends. It is crucial to consult the Tennessee Department of Revenue or a tax professional to ensure compliance with all tax obligations.