Tennessee Tax Requirements
You will only need to file a Tennessee state tax return if you received more than $1,250 in taxable interest and dividends ($2,500 if married filing jointly).
Any person 65 years of age or older having a total annual income below specific limits is completely exempt from the tax.
Tennessee does not have a state income tax on wages (or most other income such as pensions, investment gains, etc.), so you are not required to file an individual Tennessee state tax return.
If you are a legal resident of Tennessee and you earned the specified amount from dividends and interest during the tax year, you will need to file a Hall income tax return. All Hall income tax returns prepared using a software vendor certified by the Department of Revenue must be filed and paid electronically.
TN visa holders file federal tax returns using Form 1040 or 1040NR, depending on their residency status.
Tennessee Taxation System
Tennessee does not have a state income tax on wages. In 2021, Tennessee law removes tax for dividends and interest income. Tennessee has no income tax but does have a “hall tax” — a 6% tax on interest and dividends. Tennessee also has a 7% sales tax.
Taxation for Non-resident Aliens
Non-resident aliens in Tennessee only pay federal tax on U.S. income. Tax deductions and credits vary based on tax residency status.
Tennessee Constitutional Amendment
Tennessee approved a constitutional amendment in 2014. It prohibited any future taxes on wages, salaries, or other earned income.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t tax earned income. Where do people pay the most property taxes?