The Professional Privilege Tax is an annual $400 tax assessed by the Tennessee Department of Revenue on persons holding, on the due date of June 1st, an active Tennessee license or registration to practice certain professions, including pharmacy. This tax is assessed whether or not the profession is actually practiced in the state of Tennessee.
Professional Privilege Tax Legislative Update:
In 2016, TPA and others supported legislation to phase out or reduce the Professional Privilege Tax. While the tax was not repealed this year, legislation was passed requiring the Tennessee Advisory Commission on Intergovernmental Relations to study the tax’s history, intent, and alternatives, and to make their recommendations to Senate and House leaders by January 1, 2017. Read more in TPA’s 2016 legislative recap.
Although you will not receive a bill for the Professional Privilege Tax, payment must be filed electronically on or before June 1 at 11:59:59 PM. Penalties and interest apply for late payment.
Professional Privilege Tax returns can be filed electronically either by individuals or by companies that file and pay for multiple individuals. In either case, click here to file and pay online. To electronically file the Professional Privilege Tax return, you must have either your Social Security Number or your Professional Privilege Tax account number. If you do not know your account number, you may make an online account number inquiry.
For additional information, read the Professional Privilege Tax Help and FAQ. You may also submit a request for assistance through the online help application or contact the Tennessee Department of Revenue, Taxpayer Services Division, at 800-342-1003 (statewide) or 615-253-0600 (Nashville area).