Tennessee Income Tax
Tennessee levies no state income tax on wages, salaries, or ordinary income. Residents owe no income tax at the state level, though federal income tax, Social Security, and Medicare payroll taxes still apply. Some states without an income tax offset revenue through higher sales or property taxes, so this page links to those calculators to help you build a complete picture of Tennessee's overall tax environment. If you recently relocated to Tennessee or are comparing states, use the sales tax and property tax tools below alongside the federal income tax calculator to assess your full tax burden. This page is sourced from Tennessee Department of Revenue and reflects current Tennessee tax law.
Tennessee has no state income tax. Tennessee levies no individual income tax. Tennessee has never taxed wages or salaries at the state level. The Hall Income Tax, which taxed certain interest and dividend income under Tennessee Code §67-2-101, was fully repealed effective January 1, 2021 following a multi-year phase-out enacted in 2016.
Tennessee has no income tax
Tennessee levies no individual income tax. Tennessee has never taxed wages or salaries at the state level. The Hall Income Tax, which taxed certain interest and dividend income under Tennessee Code §67-2-101, was fully repealed effective January 1, 2021 following a multi-year phase-out enacted in 2016. For residents, wages, salaries and investment income are not subject to state income tax in Tennessee.
Tennessee income tax: frequently asked questions
Does Tennessee have a state income tax?
No. Tennessee levies no individual income tax. Tennessee has never taxed wages or salaries at the state level. The Hall Income Tax, which taxed certain interest and dividend income under Tennessee Code §67-2-101, was fully repealed effective January 1, 2021 following a multi-year phase-out enacted in 2016.
Do I need to file a Tennessee state income tax return?
Tennessee does not collect a personal income tax, so there is no state income tax return to file. You still need to file a federal return with the IRS.
Does Tennessee have a state income tax?
No. Tennessee imposes no individual income tax on wages, salaries, or any other income. The Hall Income Tax, which previously applied to interest and dividend income, was fully repealed effective January 1, 2021 under legislation passed in 2016.
What was the Tennessee Hall Income Tax?
The Hall Income Tax, established in 1929 under Tennessee Code §67-2-101, taxed certain interest and dividend income at a flat rate. The rate was 6% when the phase-out began, reduced by 1 percentage point per year from 2016 through 2020, and eliminated entirely for tax years beginning on or after January 1, 2021.
Does Tennessee have a sales tax?
Yes. Tennessee has a statewide sales tax rate of 7%, which is among the highest in the nation. An additional state tax of 4% applies to food and food ingredients (instead of the standard 7%). Local jurisdictions may add up to 2.75% in local sales tax, making some combined rates as high as 9.75%.
Is Tennessee tax-friendly for retirees?
Tennessee is generally considered tax-friendly for retirees. There is no state income tax on Social Security, pensions, 401(k) distributions, or IRA withdrawals. The main state-level tax burden comes from the high sales tax rate. Federal income tax still applies on applicable income.
Official sources
- Tennessee no income tax confirmation: Tennessee Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 11 June 2026. See our methodology. General information, not financial or tax advice.