State retirement taxes · 2026
Does Tennessee tax retirement income?
Short answer: No. Tennessee has no income tax on wages or retirement income, so Social Security is not taxed. The Hall tax on interest and dividends ended in 2021, so no income is taxed.
What’s taxed in Tennessee
2026 rules.
- Social SecurityNot taxed
- Tennessee has no income tax on wages or retirement income, so Social Security is not taxed.
- PensionsNot taxed
- Pensions are not taxed.
- IRA & 401(k) withdrawalsNot taxed
- IRA and 401(k) withdrawals are not taxed.
- Military retirement payNot taxed
- Military retirement pay is not taxed.
- Income tax rateNone
- No individual income tax since the Hall tax on interest and dividends was repealed for 2021 and later.
Does Tennessee tax Social Security?
Tennessee has no income tax on wages or retirement income, so Social Security is not taxed.
The Hall tax on interest and dividends — which never applied to Social Security — was repealed for tax periods beginning on or after January 1, 2021.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Tennessee?
Pensions are not taxed.
Tennessee has no income tax on wages, pensions or retirement income.
Are IRA and 401(k) withdrawals taxed in Tennessee?
IRA and 401(k) withdrawals are not taxed.
With the Hall tax repealed from 2021, interest and dividends aren’t taxed either.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Tennessee?
Military retirement pay is not taxed.
What is Tennessee’s income tax rate?
Tennessee has no broad income tax.
No individual income tax since the Hall tax on interest and dividends was repealed for 2021 and later.
What tax breaks do seniors get in Tennessee?
Not applicable to income tax. Property tax relief and freeze programs exist but are not covered here.
What changed for 2026?
None affecting income tax for 2026–2028.
Tennessee has no individual income tax; the Hall tax on interest and dividends ended in 2021.
How Tennessee compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- TennesseeThis pageTax-free retirement incomeSocial Security Not taxedTop rate: None
- AlabamaVery friendlySocial Security Not taxedTop rate: 5% top
- ArkansasFriendlySocial Security Not taxedTop rate: 3.7% top
- GeorgiaVery friendlySocial Security Not taxedTop rate: 4.99% flat
- KentuckyVery friendlySocial Security Not taxedTop rate: 3.5% flat
- MississippiVery friendlySocial Security Not taxedTop rate: 4% flat
- MissouriFriendlySocial Security Partly taxedTop rate: 4.7% top
- North CarolinaFriendlySocial Security Not taxedTop rate: 3.99% flat
- VirginiaFriendlySocial Security Not taxedTop rate: 5.75% top
State tax is half the picture — check the federal side
Tennessee retirement tax questions
Does Tennessee tax Social Security or pensions?
No. Tennessee has no income tax on wages or retirement income, so Social Security is not taxed. The Hall tax on interest and dividends — which never applied to Social Security — was repealed for tax periods beginning on or after January 1, 2021.
Are IRA withdrawals and RMDs taxed in Tennessee?
No. IRA and 401(k) withdrawals are not taxed. With the Hall tax repealed from 2021, interest and dividends aren’t taxed either.
Is Tennessee tax-friendly for retirees?
We rate Tennessee “Tax-free retirement income” for 2026. The Hall tax on interest and dividends ended in 2021, so no income is taxed. Our rating covers state income tax only — not property or sales taxes, which can still matter.
Is military retirement pay taxed in Tennessee?
No. Military retirement pay is not taxed.
Sources for Tennessee
Primary sources only. We re-check them whenever an agency publishes new figures.
- State
- State
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