Does Tennessee tax retirement income?

No. Tennessee has no state income tax, so Social Security, pensions, annuities, and IRA or 401(k) withdrawals are all completely free of Tennessee state tax. The state taxes none of your retirement income.

What happened to the Tennessee Hall tax?

The Hall Income Tax, which once taxed certain interest and dividends, was phased down and fully repealed effective from 2021. Since then Tennessee has had no tax on interest, dividends, or any other income, including retirement income.

Is my Social Security taxed in Tennessee?

Not by Tennessee. The state imposes no income tax of any kind. A portion of your Social Security may still be taxable at the federal level depending on your total income, which this tool estimates separately.

Do I still owe federal tax in retirement?

Yes. Federal income tax still applies to pensions, traditional IRA and 401(k) withdrawals, and up to 85% of Social Security depending on your income. This calculator gives a simplified federal estimate alongside the zero state figure.

Is Tennessee a good state to retire in for taxes?

On income taxes, yes — there is no state income tax on retirement income and no estate or inheritance tax. Tennessee does have a relatively high sales tax, so factor that into your overall cost of living.

Tennessee Retirement Income Tax Calculator

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Tennessee is one of the most tax-friendly states for retirees because it has no state income tax at all. Whatever your mix of Social Security, pension, and retirement-account withdrawals, Tennessee taxes none of it. This calculator confirms the zero state figure for each income stream and adds a simplified estimate of the federal tax that still applies, so you can see your real net retirement income.

How it works

The rule for Tennessee is simple — the state tax is zero on every line:

Social Security: $0 Tennessee tax.
Pensions and annuities: $0 Tennessee tax.
IRA, 401(k), and 403(b) withdrawals: $0 Tennessee tax.
Interest and dividends: $0 Tennessee tax — the old Hall Income Tax was fully repealed from 2021.

For the federal side, the tool uses a simplified model: up to 85% of Social Security is treated as taxable, pensions and traditional withdrawals and interest are fully taxable, the single-filer standard deduction with the age-65 add-on is subtracted, and 2025 federal brackets are applied.

In formula form: Tennessee tax = $0; federal tax = brackets(0.85 × SS + pension + withdrawals + interest − standard deduction).

Tips and example

Suppose you receive $24,000 of Social Security, an $18,000 pension, $20,000 in 401(k) withdrawals, and $3,000 in interest and dividends — $65,000 total. Tennessee taxes $0 of it. Federally, about $20,400 of the Social Security counts (85%), plus the other $41,000, less the standard deduction, leaving a modest federal bill.

The state result is exact. Treat the federal number as a planning estimate — your real federal tax depends on filing status, deductions, and the precise share of Social Security that is taxable. Tennessee also has no estate or inheritance tax, which adds to its appeal for retirees.