Property Tax

Tennessee has no state property tax. Property taxes are locally determined and collected.

Sales Tax

The Tennessee state tax is five percent on food and food ingredients and seven percent on all other tangible personal property, unless specifically exempted. There is no tax on prescription drugs. Tennessee cities and counties have the option of imposing an additional local option sales tax.  See following paragraph for additional local option sales tax.

Local Tax

Local taxes are set by the local government.  Any county or incorporated city, by resolution or ordinance, may levy a tax on the same privileges that are subject to the state’s sales or use tax.  The local tax rate may be anything up to 2.75%.  Our local tax rate is set at 2.75%, this makes a total of 7.75% on food and food ingredients and 9.75% on all other tangible personal property, unless specifically exempted.  

Income Tax

There is no state personal income tax in Tennessee. However, there is the Hall Income Tax, strictly on interest from bonds and notes and dividends from stock.  Starting January 1, 2021 the Hall Income Tax will be repealed.  See information under Hall Income Tax below.

Pension Tax

Retirees can nurture their nest egg by relocating to a state with lower taxes. Tennessee has a perk for retirees: Dividends and interest are the only forms of income that Tennessee taxes (see Hall Income Tax below).

Hall Income Tax

 

The Hall Income Tax is imposed only on individuals and other entities receiving interest from bonds and notes dividends from stock.  

The Hall income tax is being eliminated, and the applicable tax rate for each year of the phase out is as follows:

  • 2% of taxable income for tax years beginning January 1, 2019

  • 1% of taxable income for tax years beginning January 1, 2020

  • Repeal beginning January 1, 2021

 

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Linda Miller, Affiliate Broker

 

Linda@WeichertFFG.com

 

(931) 248-2364 Cell

(931) 484-8300 Office

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This web-site was brought to you by Linda Miller, an Affiliate Broker with Weichert REALTORS, The Webb Agency. Information was gathered from several web-sites including the State of TN, Crossville Chamber of Commerce, Fairfield Glade Community Club, Wildwood Stables, and the Plateau Creative Arts Center.  For more information or questions, please call 931-248-2364.