Tennessee Department of Revenue details who owes $400 professional privilege tax, payment rules and exemptions

The Tennessee Department of Revenue on May 27, 2025, told licensees subject to the state’s professional privilege tax — commonly called “pro fee” — that a $400 payment is due if an individual or registration is active on June 1 (this year’s due date was moved to June 2 because June 1 falls on a Sunday). Department staff explained who is liable, how to pay, and recently enacted exemptions.

Katie Julian, a presenter with the department, said, “The professional privilege tax ... is an occupation tax that is imposed on people with an active Tennessee license or registration to practice specific professions.” She told attendees the information presented was current as of May 27, 2025.

Why this matters: the tax is a state statutory privilege tax applied by license or registration, not by residence or by how much revenue a licensee earns from Tennessee clients. That means out-of-state residents who hold an active Tennessee license on the snapshot date are liable. Department staff emphasized the payment is for the upcoming year (paid in advance) and that only one $400 payment is required per person even if a licensee holds multiple subject licenses.

Who is liable and key limits - Professions listed during the webinar as subject to the…