How Tennessee taxes retirement income

2026 rules Tax year 2026 · research last updated October 2, 2026

Tennessee has no state income tax, so Social Security, pensions, IRA and 401(k) withdrawals, Roth conversions, interest, dividends and capital gains are not taxed by the state.
Federal income tax and Medicare premiums still apply, and they're where most retirement tax planning happens.

At a glance

Income tax	None
Social Security	Not taxed
Pensions, IRAs, 401(k)s	Not taxed
Roth conversions	Not taxed
Interest, dividends, capital gains	Not taxed

Detail

No wage tax. Hall income tax on interest and dividends was phased down 1%/yr and repealed for tax periods beginning on or after January 1, 2021 (DOR: do not file for any tax year beginning on or after that date).

This page covers income tax only. Property, sales and estate or inheritance taxes are separate. Taxtirement does use your state's sales tax for the federal itemized deduction when that's larger.

Source

Tennessee: no individual income taxhttps://tn.gov/revenue/taxes/hall-income-tax.html

See your own years. Taxtirement applies these Tennessee rules, and the federal and Medicare rules, to your household for every year of retirement, and shows the calculation behind each number. Coming November 2026 for iPhone, iPad and Mac.

This page summarizes Tennessee's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.