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.
Tags: tax, work
