|Tax Bracket (Single)||Marginal Tax Rate|
|Tax Bracket (Couple)||Marginal Tax Rate|
Tennessee only collects income tax on qualifying investment, dividend, and interest income. The tax rates on this page only apply to qualifying investment income, and are not imposed on personal income from wages or any income listed on a W-4 form.
Tennessee levies an income tax on the following types of income:
- Dividends from corporate stock
- Interest payments from bonds or notes
- Interest payments from a fiduciary or trust fund
- Capital gains distributions from certain mutual funds
Not all forms of investment and interest income are taxable. Interest earned on a bank account's balance, tax-free bonds, and most ordinary capital gains are exempt from the Tennessee income tax.
Tennessee has set income tax exemption amounts for single & joint filers which allow you to earn a certain amount of taxable income without paying taxes. You only have to pay state income tax if the amount of income you earned from taxable investment and interest sources is greater than the applicable tax exemption for your filing status.
Because the Tennessee income tax applies only to certain types of investment and interest income, retired taxpayers living off investments and retirement accounts often have the heaviest tax exposure. To relieve retired taxpayers, Tennessee has several special tax exemptions for retired taxpayers over the age of 65.
While most Tennessee residents will not have to file a Tennessee income tax return or pay Tennessee income tax, the Federal Income Tax is still applicable to all taxpayers.
Note: Our tax estimator tool assumes all income is from wages, so the Tennessee income tax will not be calculated.
|Download a .CSV file of the Tennessee income tax brackets|
|Download all 2013 state income tax tables as a PDF|
- The Tennessee tax brackets on this page were last updated from the Tennessee Department of Revenue in December, 2012. Please contact us if any of our Tennessee tax data is incorrect or out of date.
- Tennessee tax return forms and the latest tax tables are available from the Department of Revenue .
- Before the official 2013 Tennessee income tax brackets are released, the brackets used on this page are an estimate based on the previous year's brackets. These numbers are subject to change if new Tennessee tax tables are released.
- The income tax estimator tool is provided by Tax-Rates.org.