[talleyman]

Can someone please clarify for me? According to TN Dept of Revenue site, there IS an income tax, according to Free Republic posts, there isn't. Which is correct?

[Mack the knife]

I live in Tennessee. There is no income tax. There is a "Hall Tax" which is a tax on "investment" income.

[JDGreen123]

Mack got the answer. If they ever could get an income tax, they have proposed lowering the sales tax and the rate on the Hall tax on investments. Seven states have no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two others, New Hampshire and Tennessee, tax only dividend and interest income.