Tennessee tax deductions and write-offs (2026)

No. Tennessee has no state personal income tax, so military retired pay is 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.

No. Tennessee has no individual income tax (the Hall tax on interest and dividends was repealed), so pensions and 401(k)/IRA withdrawals are not taxed.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.

No. Tennessee has no tax on wages or benefits; its Hall tax on interest and dividends was repealed for tax years beginning January 1, 2021. 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.

Yes, and it's usually your best option: Tennessee has no income tax, so itemizers deduct sales tax instead (7% state rate, about 9.61% with local taxes). Groceries are taxed at a reduced 4% state rate. On big single items, local tax (up to 2.75%) applies only to the first $1,600, plus a 2.75% state single-article tax on the $1,600–$3,200 portion.

No: Tennessee has no income tax, so there's no state EITC to claim. No state individual income tax and no state EITC. 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.

No: Tennessee doesn't offer a renter's credit or rent rebate. Tennessee has no state income tax and no renter credit or rent rebate. Tennessee's Property Tax Relief program for older, disabled, and veteran taxpayers applies only to homeowners. With no income tax to deduct, renters who itemize federally can deduct sales tax instead (7% state rate, about 9.61% with local).

Yes on your federal return if you itemize, within the $40,400 SALT cap. Tennessee adds its own break: Property Tax Relief reimburses part of taxes for 65+ or disabled owners with 2024 income up to $37,530; disabled veterans too.

No: Tennessee doesn't base registration on your car's value, so it isn't deductible as personal property tax. Passenger registration is a flat $29 plus a flat county wheel tax (e.g., $55 in Nashville, $36 in Knox County).

Tennessee has no tax on wages, and its tax on interest and dividends (Hall tax) ended in 2021; sales tax is high, which helps the SALT sales tax option.

No: Tennessee has no state income tax, so there's nothing to deduct 529 contributions from. No wage income tax; the Hall tax on investment income was repealed for tax periods beginning on or after January 1, 2021.

No: Tennessee has no income tax, so there's no state child tax credit. No state individual income tax, so no state child or dependent care credits. 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.

Yes, as a business expense: Tennessee charges $300 ($50 per member, minimum $300, maximum $3,000) to form an LLC; ongoing: $300-$3,000 annual report ($50 per member, minimum $300). Franchise tax 0.25% of net worth (minimum $100) plus excise tax 6.5% of net earnings; applies to LLCs including single-member LLCs owned by individuals. Annual report due 1st day of 4th month after fiscal year end (April 1 for calendar year); +$20 if registered agent/office changes.