Retirement income in Tennessee
Varies
Does Tennessee Tax Retirement Income?
Short answer: No. Tennessee has no individual income tax (the Hall tax on interest and dividends was repealed), so pensions and 401(k)/IRA withdrawals are not taxed. With no income tax, Tennessee relies more on sales and property taxes; older homeowners get this break: Property Tax Relief reimburses part of taxes for 65+ or disabled owners with 2024 income up to $37,530; disabled veterans too.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Tennessee
Varies
Individuals / Personal Taxes
No. Tennessee has no individual income tax (the Hall tax on interest and dividends was repealed), so pensions and 401(k)/IRA withdrawals are not taxed. With no income tax, Tennessee relies more on sales and property taxes; older homeowners get this break: Property Tax Relief reimburses part of taxes for 65+ or disabled owners with 2024 income up to $37,530; disabled veterans too.
Business justification
No. Tennessee has no individual income tax (the Hall tax on interest and dividends was repealed), so pensions and 401(k)/IRA withdrawals are not taxed. With no income tax, Tennessee relies more on sales and property taxes; older homeowners get this break: Property Tax Relief reimburses part of taxes for 65+ or disabled owners with 2024 income up to $37,530; disabled veterans too. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions