Tennessee, TN State Income Taxes
"The Volunteer State"
Start a Federal Tax Return
TN Income Tax Filing Deadline
Tennessee does not tax individuals' earned income, so you are not required to file a Tennessee tax return for earned income. The first $1,250 of income reported on each individual return or the first $2,500 of joint income reported on a jointly filed return are exempt from this tax. Taxpayers over 65 years of age are exempt if the income is $37,000 or below for single filers and $68,000 or below for joint filers. The income should not be adjusted by an losses. The Hall income tax is being eliminated, and the applicable tax rate by tax year is: 4% of taxable income for 2017, 3% of taxable income for 2018, 2% of taxable income for 2019, 1% of taxable income for 2020. The Hall Tax in Tennessee will be phased out by end of 2020. Starting with Tax Year 2021 Tennessee will be among the states with no individual income.
When you prepare your return with eFile.com, we will generate form INC 250 for you. However, if you have already filed your return and need to correct or change any information to that return, you will need to file a tax amendment. Click the link below for information on how to amend a Tennessee return.
How to file a Tennessee Tax Amendment
Tennessee Tax Facts, Information
Tennessee Tax Information and Contacts
Tennessee Income Tax Code
TN has no personal income tax code.
Tennessee& IRS Late Filing, Tax Payment Penalties
1. Late Filing Penalty: This penalty is imposed when you fail to pay your return by the deadline. It's 5% per month your total taxes due are not submitted, but can't exceed 25% of the total tax due. The minimum penalty must be $15.
2. Late Payment Penalty: This penalty is the same as the late filing penalty.
3. IRS Penalties: Calculate and Estimate your potential IRS Income Tax Return Penalties.
2019 Hall Tax Form INC 250
Tennessee has a general 7% sales and use tax rate. Food is taxed at 5.0%, but dietary supplements, prepared food, and candy are taxed at the general sales tax rate. Sales tax is also collected at the local level. Rates vary from 1.5% to 2.75%.
Sales Tax Holiday
From July 30 through August 1, 2021
- Clothing - $100 or less (includes accessories and school uniforms)
- School supplies - $100 or less (includes backpacks, lunch boxes, and art supplies)
- Computers - $1,500 or less
Tennessee Tax Fact:
The state collects a "coin-operated amusement tax." The tax applies to "any coin-or token-operated game, machine, or device, which, as a result of depositing a coin, token, or other object, automatically or through some mechanical or electronic involving skill, chance, or a combination thereof, affords music, amusement, or entertainment without vending any merchandise." This license tax is imposed on all machines put into public play or use. An additional tax is collected per bona fide coin-operated amusement machine owned.
Tennessee Tax Return Correction
Tennessee Unemployment Benefits
There is no tax on unemployment benefits in Tennessee.
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