Outsiders often assume that Tennessee’s lack of a personal income tax simplifies the work of local accountants, but the reality is nearly the opposite. The state repealed the Hall Income Tax on investment income effective January 1, 2021, and imposes no broad-based tax on wages or salaries, yet Tennessee collects revenue through a 7 percent state sales tax (one of the highest in the nation), a franchise and excise tax structure that levies 6.5 percent on net earnings of most business entities, and a patchwork of industry-specific taxes and filing obligations that create substantial compliance demands. The Tennessee State Board of Accountancy, established in 1913 under the Department of Commerce and Insurance, oversees the licensing and regulation of certified public accountants and registered accounting firms in the state.
Tennessee employs approximately 26,890 accountants and auditors according to the Bureau of Labor Statistics (BLS, May 2024), with concentrations in the Nashville, Memphis, and Knoxville metropolitan areas driven by the state’s healthcare, logistics, and entertainment sectors. The profession faces a well-documented pipeline challenge nationally, and Tennessee responded with the Less is More Act of 2025, which created a new pathway to CPA licensure effective January 1, 2026. Under the traditional route, candidates must complete 150 semester hours of education and accumulate one year of qualifying experience. The alternative pathway allows candidates to sit for the CPA exam with 120 semester hours (a standard bachelor’s degree) provided they accumulate two years of supervised experience instead of one. Both pathways require a bachelor’s degree with 30 semester hours in accounting (24 at the upper-division level) and 24 semester hours in business courses, passage of all four sections of the Uniform CPA Examination, and passage of the AICPA Ethics Examination with a score of 90 percent or higher.
Licensed CPAs in Tennessee must complete 80 hours of continuing professional education (CPE) every two-year reporting cycle. At least 40 of those hours must fall in technical subjects, and two hours must cover state-specific ethics approved by the Board. CPAs providing attest services face an additional requirement of 20 technical hours in accounting and auditing. The Board randomly selects 10 percent of renewing licensees for a CPE audit each cycle, reviewing documentation for all claimed hours. Noncompliance can result in license suspension or reinstatement requirements that include additional coursework.
Tennessee’s franchise tax, long criticized by small business advocates for taxing capital rather than income, is undergoing a phased elimination following legislation signed in 2024. The excise tax of 6.5 percent on net earnings remains in place, making it one of the primary state-level obligations that Tennessee accountants navigate for business clients. Beyond state filings, accountants serving Tennessee businesses handle federal corporate or partnership returns, payroll tax deposits to the IRS and Tennessee Department of Labor, sales tax remittance through the Department of Revenue, and property tax schedules filed with county assessors. For individuals, the absence of a state income tax return simplifies one dimension but increases the importance of federal tax planning, retirement account strategy, and estate considerations, especially since Tennessee eliminated its estate and inheritance taxes effective 2016.
Selecting an accountant in Tennessee starts with determining whether the engagement requires a licensed CPA. Audit, review, and compilation services must be performed by a CPA or a CPA firm registered with the Board, while tax preparation and general bookkeeping do not carry the same restriction. Clients should verify CPA licensure status through the NASBA CPAverify tool or the Tennessee Board of Accountancy’s website and confirm that the practitioner carries professional liability insurance.
Top Accountant Providers in Tennessee
1. Bellenfant, PLLC
- Address: 2919 Berry Hill Dr, Nashville, TN 37204
- Phone: (615) 370-8700
- Website: https://bellenfantcpa.com
- Rating: 5.0/5 (98 reviews)
- Services: Tax preparation and planning, audit and assurance, nonprofit and governmental auditing, bookkeeping, business consulting, payroll services
- Description: Bellenfant, PLLC has served the Nashville and Middle Tennessee market for over 40 years, operating from its Berry Hill office. The firm specializes in nonprofit and governmental auditing alongside personal and business tax compliance, working with clients across healthcare, real estate, and professional services industries.
2. Jerry Tipton CPA
- Address: 6232 Washington Pike, Knoxville, TN 37918
- Phone: (865) 688-1883
- Website: https://jerrytiptoncpa.com
- Rating: 4.7/5 (214 reviews)
- Services: Individual tax preparation, business tax filing, bookkeeping, tax planning
- Description: Jerry Tipton CPA operates from the Washington Pike corridor in North Knoxville, providing individual and business tax services to the East Tennessee community. The practice has built a large client base over multiple decades, maintaining extended hours during tax season including Saturday availability.
3. Evan Hutcheson, CPA, LLC
- Address: 5741 Knob Rd, Nashville, TN 37209
- Phone: (615) 727-2295
- Website: https://evanhcpa.com
- Rating: 4.9/5 (37 reviews)
- Services: Tax preparation and planning, bookkeeping, payroll services, business advisory consulting, virtual CPA services
- Description: Evan Hutcheson, CPA, LLC was founded in 2012 and focuses on small and medium-sized businesses in the Greater Nashville area. The firm provides both in-person and virtual accounting services, with particular experience serving construction companies and self-employed professionals.
Frequently Asked Questions About Accountants in Tennessee
Q: Does Tennessee require accountants to hold a CPA license?
Tennessee does not require a CPA license for all accounting work. Tax preparation, bookkeeping, and general financial consulting can be performed without licensure. However, attest services (audits, reviews, and compilations) must be performed by a licensed CPA or a firm registered with the Tennessee State Board of Accountancy. Using the “CPA” designation without holding an active Tennessee license is a violation of state law.
Q: What changed with Tennessee’s Less is More Act of 2025?
The Less is More Act created a second pathway to CPA licensure effective January 1, 2026. Candidates can now qualify with 120 semester hours of education (a standard bachelor’s degree) combined with two years of supervised experience, rather than the traditional 150-hour education requirement paired with one year of experience. Both pathways still require passing the Uniform CPA Examination and the AICPA Ethics Examination.
Q: How does Tennessee’s tax structure affect accounting services?
Tennessee has no personal income tax on wages or salaries, which eliminates the need for individual state income tax returns. However, business entities face a 6.5 percent excise tax on net earnings, sales tax obligations at one of the nation’s highest combined rates, and various industry-specific filings. Accountants serving Tennessee businesses spend significant time on franchise and excise tax compliance, sales tax remittance, and payroll tax administration through both federal and state agencies.
Q: What continuing education do Tennessee CPAs need to maintain their license?
Licensed CPAs must complete 80 hours of continuing professional education every two-year renewal cycle. A minimum of 40 hours must be in technical subjects, and two hours must be in state-specific ethics approved by the Board of Accountancy. CPAs providing attest services must devote at least 20 of the 40 technical hours to accounting and auditing topics. The Board audits 10 percent of renewing licensees each cycle.
Q: Is Tennessee eliminating its franchise tax?
Tennessee is phasing out the franchise tax, which has historically taxed businesses based on their net worth or the book value of property owned in the state. The excise tax of 6.5 percent on net earnings remains in effect. Business owners should consult an accountant familiar with Tennessee tax law to understand the timeline and any transitional provisions that may apply to their entity.
Q: What is the difference between an accountant and a CPA in Tennessee?
An accountant is a general term for a professional who handles financial recordkeeping, tax preparation, or advisory services. A CPA has met specific education requirements (150 or 120 semester hours depending on the licensure pathway), passed the four-part Uniform CPA Examination, completed the AICPA Ethics Examination, accumulated one or two years of supervised experience, and holds an active license from the Tennessee State Board of Accountancy. Only a CPA can perform audit, review, or compilation engagements and represent clients before the IRS in all matters.