Tennessee tax guide

Tennessee Taxes: No Wage Tax, Hall Tax Repeal, Business Tax

Updated October 5, 2026

Tennessee has no personal income tax return to file. The Department of Revenue's list of active taxes shows none, and the Hall income tax on interest and dividends was repealed for periods starting in 2021. You still file a federal return, and self-employed people may owe Tennessee business tax.

Where Tennessee stands on personal income tax

Most state guides start with a rate. Tennessee's starts with a tax that no longer exists. For years the state had the Hall income tax. The Department of Revenue says it was imposed only on individuals and other entities that received interest from bonds and notes, and dividends from stock. It was not a tax on wages.

The Department says the Hall tax was repealed for tax periods that begin on January 1, 2021 or later. Its instruction is blunt: do not file Hall returns for any year that begins on or after that date. The tax now sits in the Department's archived list, next to the gift tax and the inheritance tax.

The Department's list of active taxes has business tax, franchise and excise tax and sales and use tax among the most common. It also lists property tax, severance taxes and a professional privilege tax, along with taxes on alcohol and tobacco. None of them is a tax on wages. Be careful with older web pages and forums, because many still talk about the Hall tax as if it were live.

What you still file: the federal return

With no state income tax return, your main filing is the federal one. The IRS says calendar-year filers have a regular April 15 due date. A return counts as on time if it is postmarked and put in the mail by that date.

If you need more time, an automatic six-month extension comes from Form 4868, filed by the original due date. The IRS is clear that an extension of time to file is not an extension of time to pay. Pay what you expect to owe by April 15.

Our extension guide explains how the federal extension works. Military members who serve in a combat zone get extra time under federal rules. The IRS page lists it.

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Self-employed in Tennessee: the business tax

The tax that catches Tennessee freelancers is not an income tax. It is the business tax. The Department says that if you conduct business in any county or incorporated city in Tennessee, and your business grosses above the Department's threshold, you should register for and pay business tax.

It has two parts. There is a state business tax and a city or county business tax.
You file through TNTAP. That is the Tennessee Taxpayer Access Point, the Department's online portal.
Out-of-state sellers can owe it too. The Department says this when a business has substantial nexus with the state and delivers services, leases items or ships goods there.
Closing a business has a deadline. You file a final business tax return soon after you stop. The business tax page gives the exact window.

The Department's business tax pages also cover tax classifications, due dates and rates, and registration and licensing. If you run an LLC or corporation, franchise and excise tax may apply too, so ask about it when you set up. Our side hustle taxes guide covers the federal side of freelance income.

Living in Tennessee, working next door

Tennessee touches eight states. That means a lot of people live in Tennessee and work across a state line in Kentucky, Virginia, North Carolina, Georgia, Alabama, Mississippi, Arkansas or Missouri.

Because Tennessee lists no wage tax, your home-state side is simple, but it does not erase the other state's rules. A state where you earn wages may ask you for a nonresident return. Check that state's revenue agency, and keep your pay statements so the numbers match what your employer reported.

If your employer sends withholding to the wrong state, the fix starts with the payroll office and then with the state that received the money. Our multi-state income guide explains how the rules fit together.

Moving between Tennessee and Florida

Florida has no personal income tax, and Tennessee's Department lists none among its active taxes. So a Tennessee to Florida move rarely changes an income tax return. What changes is everything around it: business tax, property tax, sales tax and your proof of where you live.

Keep your move dates, your new address records and your voter and driver records together. They show where you made your home. If you moved from a state that does tax wages into Tennessee, that earlier state may want a part-year return for the months you lived there.

Our moving to Florida guide explains domicile in plain language.

Estimated payments and records

Tennessee's tax list shows no income tax on wages, so there is no state estimated payment for wage income. Federal estimated tax still applies. The IRS says sole proprietors, partners and S corporation shareholders generally must make estimated payments if they expect to owe tax when they file. Penalties apply for late payments, even if you are due a refund when you file.

You can pay through the IRS online options, by phone, with the IRS mobile app, or by mail with Form 1040-ES.

Keep a separate record of your gross receipts. Both the federal return and the Tennessee business tax look at what the business brings in.

Common Tennessee mix-ups

Hunting for a Hall tax form. It was repealed. Do not file one for a year that begins in 2021 or later.
Assuming no state income tax means no state tax. The business tax, sales tax and property tax still exist.
Skipping business tax registration. If your gross receipts pass the Department's threshold, register.
Forgetting the other state. A job across the border can mean a nonresident return there.
Treating a federal extension as extra time to pay. It is not.
Closing a business without a final return.

When in doubt, check the Department's pages for the year you are filing.

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FAQ

Does Tennessee have a state income tax?

The Department of Revenue's list of active taxes shows no personal income tax. The old Hall income tax, which applied only to interest and dividends, was repealed for tax periods that begin on January 1, 2021 or later.

What happened to the Hall income tax?

The Department says it was repealed for periods beginning January 1, 2021 or later. Taxpayers should not file returns for any tax year beginning on or after that date.

Do I owe Tennessee business tax if I freelance?

It depends on where you do business and how much your business grosses. The Department says to register if you operate in a county or incorporated city and your gross receipts reach its threshold. Check its business tax page.

Where do I file Tennessee business tax?

The Department's online portal, the Tennessee Taxpayer Access Point (TNTAP), is the main filing platform for business tax.

Do I still file a federal return in Tennessee?

Yes. Federal rules apply in every state. The regular due date for calendar-year filers is April 15, and Form 4868 gives an automatic six-month extension to file, not to pay.

Nearby state guides

North Carolina Georgia Alabama

Sources

General information, not tax advice for your specific situation. Rules can change, so check the official sources below. Zero Fuss Taxes is a PTIN-holding tax preparation firm. We are not a CPA firm, enrolled agents or attorneys.

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