Does Tennessee tax military retirement pay?
No state income tax
No. Tennessee has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state.
In the state's own words
Copied word for word from the official document linked below each quote:
“The tax is fully repealed beginning January 1, 2021.”
Other retirement income in Tennessee
No. Tennessee has no tax on earned income, and its tax on interest and dividends ended in 2021, so retirement income is not taxed. The Tennessee pension page has the details, and the Tennessee Social Security page covers Social Security. No. Tennessee has no tax on earned income, and the Hall tax on interest and dividends ended in 2021.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Tennessee Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- HIT-3: Hall Income Tax Repealed Beginning January 1, 2021Tennessee Department of Revenue. Read on November 13, 2026.