Tax Year 2023 Tennessee Income Tax Brackets
Tennessee's income tax rates were last changed three years ago for tax year 2020, and the tax brackets have not been changed since at least 2001.
Tennessee Only Taxes Investment & Dividend Income
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.
Tennessee Income Tax Calculator
Tennessee Income Tax Estimator
You can use the income tax estimator to the left to calculate your approximate Tennessee and Federal income tax based on the most recent tax brackets.
Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.
For a more detailed estimate that takes these factors into account, click "View Detailed Estimate" (this will will redirect to an external website).
Tennessee Tax Deductions
When calculating your Tennessee income tax, keep in mind that the Tennessee state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions.
Qualifying deductions might include an itemized deduction, the Tennessee standard deduction, exemptions for dependants, business expenses, etc.
Remember that Tennessee may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Tennessee income tax return.
Download .CSV file of TN income tax bracketsCompatible with Excel or database software
Download or print Tennessee income tax formsTN income tax forms are available as PDFs
Tennessee Standard Deductions & Personal Exemption Amounts
In addition to marginal tax brackets, one of the major features of the Tennessee income tax is deductions. The three most common deductions encountered by taxpayers are the Tennessee Standard Deduction, the Tennessee Personal Exemption, and the Tennessee Dependent Deduction. The current values of these deductions for tax year 2023 are as follows:
|Standard Deduction (Single)
|Standard Deduction (MFJ)
The standard deduction, which Tennessee does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.
The Personal Exemption, which is not supported by the Tennessee income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.
The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Tennessee's and may have different rules.
Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.
Sources & Citations
Disclaimer: While we do our best to keep this list of Tennessee income tax rates up to date and complete, we cannot be held liable for errors or omissions. Is info on this page missing or out-of-date? Please let us know so we can fix it!
The Tennessee tax brackets on this page have been updated for tax year 2023, and are the latest brackets available. States often adjust their tax brackets on a yearly basis, so make sure to check back later for Tennessee's updated tax year 2024 tax brackets!