On the Tennessee income tax - don’t get mad at me
It seems like every few years the Tennessee legislators get into a battle over how to tax us. One big issue is whether Tennessee should have a progressive income tax. And every time the issue comes up, the status quo is preserved.
But what most people don’t understand is that Tennessee does have a state income tax. And I’m not just talking about the so-called Franchise and Excise tax on businesses, which is another issue altogether. I’m talking about the Hall income tax, which is a levy on any dividend, interest, s corp distributions, etc, over $1250 per individual, excluding national banks and most state institutions and municipalities.
Well, like I said, a lot of people don’t even know there is a state income tax, and those who do don’t often know the exact rules, which are arguably quite unfair - eg taxing tax-free but out-of-state interest.
Lots of people don’t understand it, and lots of those people have been mad at me of late.
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2 Responses to “On the Tennessee income tax - don’t get mad at me”
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Jon,thanks for enlightening me. I agree,the tax seems very unfair. Have you any idea if other states have a similar tax law? Do you know the reasoning behind this tax law?
The messenger is always in a dangerous position
Guess every state has it’s tax arguments - no one likes to pay them but of course we all want the services they provide. No income tax in FL but the big shake-up these days has to do with property taxes.