Tennessee Taxes

Editor’s Note: Tennessee doesn’t impose a state-level income tax, but it does impose other types of taxes. Read on to learn more. about Tennessee tax details, like Tennessee tax rates, due dates, and more.

What is Tennessee Income Tax?

Income tax is generally levied at a state-level on the income you earn within a tax year. Yet, Tennessee is one of several states that doesn’t levy a state-level income tax on personal income. Business income and real property taxes as well as sales taxes are levied in Tennessee.

Who Pays Tennessee Tax?

So, if you earn an income or live in Tennessee, do you have to pay Tennessee income taxes?

Because Tennessee taxes do not include personal income, individuals are not subject to income tax on earnings.

What’s the Tennessee Income Tax Rate?

There is no income tax on wages in this state, making it one of the states with the lowest taxes. Therefore, the Tennessee income tax rate is 0%. It does have, however, a flat 1 to 2% tax rate that applies to income earned from interest and dividends.

Tennessee levies tax on other items, outside of income. This is how they collect money to pay for municipal items such as first responder services, infrastructure, roads, schools, and more.

How Do You Pay Tennessee State Taxes?

If you do owe Tennessee state taxes, other than income tax, you can learn more about what is taxed at the TN Department of Revenue website. State tax ranges from business and sales tax, to inheritance and gift tax.

To pay taxes, you may do so online at https://tntap.tn.gov/eservices/_/.

When Are Tennessee Tax Returns Due?

The state tax deadlines often coincide with the federal tax deadline, which typically is on April 15, unless it falls on a weekend or deemed otherwise by the IRS.

How Do You Check If You Paid Tennessee State Income Tax?

If you want to make sure your Tennessee state income taxes were paid, you do not need to do so. This is because there is no personal state income tax levied in the state.

Deducting Tennessee Taxes

If you do pay certain Tennessee taxes as a business or individual, the IRS allows you to claim a deduction on your federal tax return for them. You can claim a state income tax deduction if you itemize deductions on your federal return.

To determine if you should itemize your deductions, add up your calendar-year deductible expenses. Then, if the total is greater than the standard deduction amount for your filing status. If you are single you can claim a standard deduction of $12,400. So, if you pay more than that amount in itemized deductions, then consider itemizing your taxes.

Due to the Tax Cuts and Jobs Act, state and local tax deductions, including state income taxes, are limited to $10,000 per year ($5,000 for married filing separately).

More Help with TN Tax

Understanding your tax obligation and potential federal deductions you can take is important, because it effects your overall tax return and refund amount.

So, get help with H&R Block Virtual! With this service, we’ll match you with a tax pro with Tennessee tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your TN taxes, including federal deductions for paying state taxes.

Prefer a different way to file? No problem – you can find Tennessee state tax expertise with all of our ways to file taxes.