Tennessee Retirement Tax Calculator (2026): No State Income Tax
Tennessee has no income tax on Social Security, pensions, IRA or 401(k) withdrawals in 2026. The Hall tax, the state’s last individual income tax and one that reached only interest and dividend income, does not apply to any tax period that began on or after January 1, 2021, so a Tennessee retiree owes income tax to the IRS alone.
Checked against sources 2 official sources linked How we verify
Tennessee resident retirement worksheet
Tennessee · 2026 estimate
Waiting on a figure
- Cash after this state income tax
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ScopeConfirm residency and ordinary retirement category before a zero state result appears.
Illustrative defaults. Enter approved taxable amounts and confirm eligibility. The result covers the displayed worksheet conditions; a complete return may require other income, adjustments, deductions or credits.
Tennessee: Current statute / agency guidance; annual forms must match the tax year. Hall-tax period begins in 2021 or later; Federal pension / account classification preserved; Prior-period and business obligations separated. This zero-income-tax result does not estimate total cost of living.
Reviewed October 12, 2026. Tennessee’s repealed Hall tax should not appear in current estimates
What Tennessee taxes in retirement
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Social Security
Not taxedNo Tennessee income tax reaches benefits.
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Pensions
Not taxedPensions owe nothing to Tennessee.
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IRA & 401(k) withdrawals
Not taxedThe Hall tax on investment income ended for 2021 and later.
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Wages from work
Not taxedNo state wage tax.
Partly taxed: limits by age, plan, owner or income apply. Military retirement is covered in the guide. How these labels work.
Tennessee retirement tax figures and sources
| Rule | Tennessee figure | Effective | Primary source |
|---|---|---|---|
| Hall income tax | Repealed; nothing is owed and no Hall return is due for a tax year that starts January 1, 2021 or later | Tax periods from January 1, 2021 | Tennessee Department of Revenue, Hall income tax |
| What the Hall tax reached while it applied | Only interest from bonds and notes and dividends from stock | Enacted 1929; ended with the repeal above | Tennessee Department of Revenue, Hall income tax |
| Federal tax on the same benefits | Up to 85% of Social Security can be taxable on the federal return | Every year | IRS Publication 915 |
Tennessee’s repealed Hall tax should not appear in current estimates
Tennessee repealed the Hall income tax for tax years beginning in 2021; ordinary retirement income has no individual state income tax.
Tennessee Revenue states that the Hall income tax is repealed for tax years beginning January 1, 2021 and later. An older interest-and-dividend rate should therefore not appear as a current personal retirement-income tax. Earlier-period obligations and taxes on business activity are distinct from the individual retirement scope used by the zero-state mode.
An ordinary Tennessee retirement household can receive pension income, Social Security and account distributions without a Tennessee individual income-tax layer on those receipts. Federal taxability is still determined by account type, contribution basis, benefit income and approved deductions. The repeal does not convert a traditional IRA withdrawal into a qualified Roth distribution or erase taxable federal pension income.
For an example comparison, increasing taxable retirement-account withdrawals in Tennessee leaves the scoped state amount unchanged while potentially increasing both federal ordinary income and federally taxable Social Security. The federal worksheet should be rerun with the changed prepared income. A fixed all-retirement tax percentage cannot show that benefit interaction.
Document tax year and domicile when comparing Tennessee with a former residence. A payment resolving an old Hall-tax period must not be mistaken for a continuing annual tax. Similarly, a business tax or property bill should not be entered as individual retirement income tax without changing the comparison scope consistently. Retain the former state’s annual or part-year preparation so the destination savings figure compares the same period and income definition.
Prepare these Tennessee records
- Hall-tax period begins in 2021 or later
- Federal pension / account classification preserved
- Prior-period and business obligations separated
Official Tennessee source. Current statute / agency guidance; annual forms must match the tax year.
Calculate the federal portion separately
Use the federal retirement-tax worksheet to prepare federally included benefits and ordinary income. Its federal deduction and rates do not replace the Tennessee rules above.
Compare Tennessee with nearby states
Tennessee borders 8 states; these 6 treat Social Security, pensions, IRA withdrawals and wages most like Tennessee does. Run each one’s worksheet with the same household figures before deciding where a move would leave you.
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Updated / verified · Retirement Income Tax Calculator Editorial Team