A tax is a charge or levy of money made by a governmental entity (state, local, or federal) against a taxpayer—usually a U.S. citizen or a person living or working in the United States. There are many kinds of taxes, including income tax, capital-gains tax, property tax, franchise tax, gift tax, ad valorem tax, sales tax, use tax, inheritance tax, and estate tax.

In Tennessee, as in other states, taxpayers are subject to various forms of taxation. Tennessee does not impose a personal income tax on wages, but it does tax interest and dividend income through the Hall income tax, which is being phased out and is set to be fully repealed by January 1, 2022. The state levies a sales tax, which is a combination of the state sales tax rate and any local sales taxes that may apply. Tennessee also imposes a use tax on goods purchased out of state but used within Tennessee. Property taxes are administered locally, not by the state, and are a significant source of revenue for local governments, funding services such as schools and public safety. Tennessee does not have an inheritance tax, as it was repealed effective January 1, 2016. However, the state does have a gift tax. The estate tax, often referred to as the 'death tax,' was also phased out and no longer applies to individuals who died on or after January 1, 2016. Businesses in Tennessee may be subject to franchise and excise taxes, which are state-level taxes on the privilege of doing business in the state and on certain types of income, respectively.