{"id":53150,"date":"2026-10-28T01:25:45","date_gmt":"2026-10-28T06:25:45","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=53150"},"modified":"2026-10-28T11:26:42","modified_gmt":"2026-10-28T16:26:42","slug":"tennessee-taxes","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/tennessee-taxes\/","title":{"rendered":"Does Tennessee have state income tax?"},"content":{"rendered":"\n

No, Tennessee does not have an individual income tax on wages or other personal income. Tennessee is one of nine states that does not have individual income tax.<\/a><\/p>\n\n\n\n

Its former tax on certain interest and dividend income, known as the Hall income tax, was fully repealed for tax periods beginning January 1, 2021, or later.<\/p>\n\n\n\n

Here\u2019s what individuals and business owners should know about Tennessee state tax, including rates and filing requirements.<\/p>\n\n\n\n

Tennessee income tax<\/h2>\n\n\n\n

The answer to whether you pay Tennessee income tax depends on whether you\u2019re filing as an individual or a business.<\/p>\n\n\n\n

Tennessee individual income tax<\/h3>\n\n\n\n

Tennessee does not currently impose an individual income tax. Its previous Hall income tax applied to certain interest from bonds and notes and dividends from stock, but that tax was phased out and fully repealed beginning January 1, 2021. The Tennessee Department of Revenue now instructs taxpayers not<\/em> to file a Hall income tax return for any tax year beginning on or after that date.<\/p>\n\n\n\n

The phaseout happened gradually:<\/p>\n\n\n\n

Tax year beginning<\/strong><\/td>Tennessee Hall income tax rate<\/strong><\/td><\/tr>
2017<\/td>4%<\/td><\/tr>
2018<\/td>3%<\/td><\/tr>
2019<\/td>2%<\/td><\/tr>
2020<\/td>1%<\/td><\/tr>
2021<\/td>Repealed<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

So, does Tennessee have state income tax on wages, interest, or dividends today? No.<\/p>\n\n\n\n

Tennessee does impose other taxes, however. Depending on your situation, you may encounter taxes such as sales and use tax, property taxes, and other state or locally administered taxes.<\/p>\n\n\n

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\"Tennessee<\/figure><\/div>\n\n\n

Tennessee business income tax<\/h2>\n\n\n\n

Businesses are different. Although Tennessee doesn\u2019t have an individual Tennessee income tax, many businesses operating in the state are subject to franchise and excise taxes.<\/p>\n\n\n\n

Generally, corporations, limited partnerships, limited liability companies, and business trusts that are chartered, qualified or registered in Tennessee or doing business in the state must register for and pay franchise and excise taxes.<\/p>\n\n\n\n

These are two different taxes:<\/p>\n\n\n\n