Tennessee State Income Tax Data Sheet


© 2019 Tax-Rates.org

Tax Bracket (Single) [2] Tax Bracket (Couple) [3] Marginal Tax Rate
$0+ $0+ 5.00%

Note: Tennessee's income tax has a single flat tax rate for all income.

Tennessee does not collect an income tax on tax normal wage income. A special 6% income tax called the Hall income tax applies only to taxable interest and divident income over $1,250 for individuals and $2,500 for married couples filing jointly. Taxpayers over 65 with total income less than $16,200 for a single filer or $27,000 for a couple filing jointly are exempt from this tax.

The Hall income tax, named after the state senator who sponsored it, has been around since 1929 and hasn't been raised since 1937. Only dividend or interest income from investments like stocks, mutual funds, and corporate dividends is subject to this tax. Interest from bank or credit union accounts, the type of interest earned by most Tennessee residents, is exempt from the Hall income tax.

Because of the limited types of income that are subject to the Hall income tax, the majority of Tennessee taxpayers do not have to submit a state tax return. On an average year, between 150,000 and 200,000 households pay into the tax fund, which consists of only about 2% of Tennessee's state tax collections.

In recent years, state commissions established to audit Tennessee's tax structure have criticized the tax as unfair to retired taxpayers, who often depend heavily on investment and dividend income. Exemptions for low income retirees have been introduced to help protect retired taxpayers.

For more information on the Hall income tax, call the tennessee Department of Revenue's tax help hotline at (615) 532-6439.

Tennessee State Income Tax Deductions

Income tax deductions are expenses that can be deducted from your gross pre-tax income before determining your taxable income.

Tennessee Standard Deduction

Unlike many other states, Tennessee has no standard deduction. Certain itemized deductions (including property tax, qualified charitable contributions, etc) may be allowed depending on the income level and filing type of the taxpayer. Keep in mind that not all deductions allowed on your federal income tax return are necessarily going to be allowed on your Tennessee income tax return.

Tennessee Personal Exemptions

Tennessee's personal income tax exemptions include a personal exemption of $1,250.00. You can deduct one single exemption from your gross income if you are responsible for supporting yourself financially.

Tennessee Dependent Deduction

Unlike most states, Tennessee does not have a dependent deduction. You can, however, claim dependent deductions on your Federal Tax Return.

Tennessee Itemized Deductions

Not applicable.

Tennessee State Income Tax Data Sheet


© 2019 Tax-Rates.org

Web Resources:

Department of Revenue Website:

Tennessee Tax Forms:

Tennessee Income Tax Information:

Important Tax Addresses:

Income Tax Returns
Tennessee Department of Revenue
Andrew Jackson State Offcie Bldg.
500 Deaderick Street
Nashville, TN 37242;

Application for Extention of Time
Tennessee Department of Revenue
Andrew Jackson State Offcie Bldg.
500 Deaderick Street
Nashville, TN 37242;