State Tax · TN · 2025
Tennessee Income Tax Calculator
Tennessee levies no state individual income tax. The Hall Income Tax on interest and dividends was fully repealed effective January 1, 2021.
Tennessee levies no state individual income tax. The Hall Income Tax on interest and dividends was fully repealed effective January 1, 2021.
Source: Tennessee Department of Revenue
Methodology
Tennessee does not impose a state individual income tax. Residents pay no state income tax on wages, salary, interest, dividends, or capital gains (with the exception noted above, if any). Federal income tax obligations still apply.
Last reviewed: January 2025. Verified against Tennessee Department of Revenue.
Frequently asked questions
Does Tennessee have a state income tax?
Tennessee levies no state individual income tax. The Hall Income Tax on interest and dividends was fully repealed effective January 1, 2021.
Do I need to file a Tennessee state income tax return?
Because Tennessee has no state income tax, residents are generally not required to file a state income tax return. However, you may still owe federal income tax and must file a federal return if required by IRS rules.
Does living in Tennessee mean I pay no income tax at all?
No — you still owe federal income tax to the IRS on your income. Tennessee simply does not impose an additional state-level income tax. If you earn income in another state, that state may require you to file a nonresident return.
Can I save on taxes by moving to Tennessee?
Residents of Tennessee avoid state income tax, which can be meaningful for high earners. However, a full tax comparison should include all state and local taxes (property, sales, excise), not just income tax. Consult a tax professional before relocating for tax reasons.
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