Tennessee Tax Brackets

Tennessee does not have a state individual income tax, so there are no Tennessee tax brackets for wages, salaries, self-employment income, or retirement income.

Most residents do not file a Tennessee personal income tax return because none exists.

What This Means for Taxpayers

Because there is no state income tax, Tennessee does not tax:

• Wages and salary income
• Self-employment income
• IRA withdrawals
• 401(k) distributions
• Pension income
• Social Security benefits
• Capital gains as personal income tax

Tennessee also repealed its former tax on interest and dividend income.

Example Effective Tax Rate

If you earn $75,000 in Tennessee:

• State taxable income: $75,000
• State income tax owed: $0
• Effective state income tax rate: 0%

Example: A worker moving from a state with a 5% income tax to Tennessee could save about $3,750 annually on $75,000 of taxable income.

Other Taxes in Tennessee

Even without income tax, residents may still pay other state and local taxes:

• Sales tax
• Property tax
• Fuel taxes
• Business taxes
• Excise taxes

Tennessee relies more heavily on sales and business taxes than states with an income tax.

Is Tennessee Tax-Friendly for Retirees?

Tennessee is often considered tax-friendly for retirees because retirement income is not subject to state income tax. That includes pensions, IRAs, and Social Security benefits.

💻 Electronic Filing Recommendation

• File your federal return electronically for faster processing
• Keep W-2s, 1099s, and retirement statements for your records
• No separate Tennessee personal income tax return is typically required
• Review sales and property taxes when comparing the total tax burden after a move

Summary

Tennessee has no state income tax, so there are no tax brackets to track. For most residents, state income tax liability is $0, making the state attractive for workers, retirees, and business owners.