Tennessee State Income Tax - Tax Year 2012
1.1 -
Contents
Contents
1.
Tennessee Income Tax Table
| Tax Bracket (Single) [2] | Tax Bracket (Couple) [3] | Marginal Tax Rate |
| $0+ | $0+ | 6.00% |
Note: Tennessee a state income tax, but it only applies to certain dividend and interest income. Wages are not taxed.
Learn how marginal tax brackets work 
2.
Tennessee Income Tax Calculator
3.
The Tennessee Income Tax
Tennessee has a flat income tax rate of 6.00% of gross income, unlike the federal income tax which uses tax brackets based on marginal income. There are a total of twenty one states with higher marginal income tax rates then Tennessee.
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. There are -37 days left until Tax Day, on April 15th 2013.
4.
Tennessee Tax Deductions
Income tax deductions are expenses that can be deducted from your gross pre-tax income. Using deductions is an excellent way to reduce your Tennessee income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Tennessee tax returns. For details on specific deductions available in Tennessee, see the list of Tennessee income tax deductions.
4.1 - 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.
4.2 - 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.
4.3 - Tennessee Dependent Deduction
- Unlike most states, Tennessee does not have a dependent deduction. You can, however, claim dependent deductions on your Federal Tax Return.
4.4 - Tennessee Itemized Deductions
- Not applicable.
5.
Tennessee Income Tax Forms
Tax-Rates.org provides easy access to two of the most commonly used Tennessee income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Tennessee tax forms library or the Department of Revenue 's tax forms page.
02/2013
Form INC-250 - Individual Income Tax ReturnForm INC-250 is the general income tax return for Tennessee residents. INC-250 can be eFiled, or a paper copy can be filed via mail.
02/2013
Form INC-251 - Application for Extension of TimeTo file this application, you must send it before or on the statury due date, which is the fifteenth day of the fourth month after the end of the taxpayer's year.
12/2012
Printable Tennessee Tax Table & Tax Reference
Tax-Rates.org provides a printable Tennessee datasheet including an income tax table, a list of Tennessee tax deductions, important URLs and addresses, and more. This document is in PDF format.
If you are not a resident of Tennessee, have a complicated tax return, or have other specialized circumstances you may need to download additional tax forms from the Department of Revenue website. You can find all of Tennessee's 2013 income tax forms on the Department of Revenue income tax forms page 
.
.
6.
How To File Your Tennessee Income Tax Return
Once you've filled out your Tennessee income tax return, you have several options for filing and paying your income tax. You can mail your return to the Department of Revenue at the correct address below, and include your payment by check or money order. You may also electronically file your Tennessee tax return through a tax preparer or using online tax software, and pay your taxes instantly using direct debit or a credit card (an additional credit card fee may apply).
7.
Where To Send Your Tennessee Tax Return
If you filled out physical tax return forms, mail your completed Tennessee income tax return to the Tennessee Department of Revenue no later then January 1st. Please be sure to send your completed tax forms to the correct address for your filing type.
Application for Extention of Time Tennessee Department of Revenue Andrew Jackson State Offcie Bldg. 500 Deaderick Street Nashville, TN 37242 |
Income Tax Returns Tennessee Department of Revenue Andrew Jackson State Offcie Bldg. 500 Deaderick Street Nashville, TN 37242 |
8.
e-Filing: Submit Your Tennessee Tax Return Online
You can save time and money by electronically filing your Tennessee income tax directly with the Department of Revenue . Benefits of e-Filing your Tennessee tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
To e-file your Tennessee and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies.
The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
9.
Getting Your Tennessee Tax Refund
If your state tax witholdings are greater then the amount of income tax you owe the state of Tennessee, you will receive an income tax refund check from the government to make up the difference.
It should take one to three weeks for your refund check to be processed after your income tax return is recieved. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible.
Once you've filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Tennessee tax refund, you can visit the Tennessee Department of Revenue Income Tax Refund page.
How can we improve this page? We value your comments and suggestions! Send Instant Feedback About This Page
10.
References
- Our state ranking and income tax figures are based on a family of four (married parents with two children) earning the national median household income of $50,000 per year. Deductions and personal exemptions are taken into account, but some state-specific deductions and tax credit programs may not be accounted for.
- Before the official 2013 Tennessee income tax rates are released, provisional 2013 tax rates are based on Tennessee's 2012 income tax brackets.
-
The 2013 state personal income tax brackets are updated from the Tennessee Department of Revenue and Tax Foundation data.
-
Tennessee tax forms are sourced from the Tennessee Department of Revenue income tax forms page, and are updated on a yearly basis. Please make sure the Tennessee forms you are using are up-to-date.
