Last year, Tennessee’s legislators and Governor enacted a repeal of the TN Hall Tax effective 2022 and a reduction of the rate from 6% to 5% beginning January, 1 2016. Last month, they went a step further in repealing the TN Hall Tax and reducing rates paid by residents. The following schedule outlines the changes and effective dates:
- 4% of taxable income for tax years beginning January 1, 2017
- 3% of taxable income for tax years beginning January 1, 2018
- 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
Also, TN residents in excess of 100 years of age are no longer subject to the TN Hall Tax with legislation passed on May 9. The state expects 120 centenarians to benefit from this legislation.
See more at: https://www.tn.gov/revenue/article/hall-income-tax-due-date-and-tax-rate#sthash.SX9k8JEn.dpuf