State tax ranges from business and sales tax, to inheritance and gift tax. If you do owe Tennessee state taxes, other than income tax, you can learn more about what is taxed at the TN Department of Revenue website. This is how they collect money to pay for municipal items such as first responder services, infrastructure, roads, schools, and more. Tennessee levies tax on other items, outside of income. It does have, however, a flat 1 to 2% tax rate that applies to income earned from interest and dividends. Therefore, the Tennessee income tax rate is 0%. There is no income tax on wages in this state, making it one of the states with the lowest taxes. So, if you earn an income or live in Tennessee, do you have to pay Tennessee income taxes?īecause Tennessee taxes do not include personal income, individuals are not subject to income tax on earnings. Business income and real property taxes as well as sales taxes are levied in Tennessee. Yet, Tennessee is one of several states that doesn’t levy a state-level income tax on personal income. Income tax is generally levied at a state-level on the income you earn within a tax year. about Tennessee tax details, like Tennessee tax rates, due dates, and more. Editor’s Note: Tennessee doesn’t impose a state-level income tax, but it does impose other types of taxes.

Tn salesx tax law