Select your state

Taxes

state income tax

Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.

There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.

Tennessee is one of the few states that does not levy a general state income tax on wages and salaries of its residents. This means that individuals earning income through employment or most business activities within Tennessee are not subject to state income tax on those earnings. However, Tennessee does have the Hall income tax, which is a tax on interest and dividend income. The Hall tax has been incrementally reduced in recent years and was fully repealed as of January 1, 2021. Therefore, Tennessee residents no longer pay state tax on interest and dividend income. It's important to note that while there is no broad-based income tax, Tennessee does impose other types of taxes, such as sales and property taxes, which can vary by local jurisdiction within the state.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Taxes

state income tax

Individual & Family Legal Plan

Articles

Tennessee State Code

Tennessee State Code

Taxes

state income tax

Articles