Does Tennessee tax pensions and retirement income?
No state income tax
No. Tennessee has no tax on earned income, and its tax on interest and dividends ended in 2021, so retirement income is not taxed.
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“The tax is fully repealed beginning January 1, 2021.”
And Social Security?
No. Tennessee has no tax on earned income, and the Hall tax on interest and dividends ended in 2021. The Tennessee Social Security page quotes the rule.
Federal tax still applies
Whatever Tennessee does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) 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- HIT-3: Hall Income Tax Repealed Beginning January 1, 2021Tennessee Department of Revenue.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 12, 2026.