United States · Tennessee · State income tax
Tennessee income tax.
The Hall tax taxed only interest and dividends, stepped down from 4% to 1%, and ended on January 1, 2021.
Short answer: Tennessee's Hall income tax was imposed only on interest from bonds and notes and dividends from stock, and the Department of Revenue says it was repealed for tax periods beginning January 1, 2021 or later. Its rate fell from 4% (2017) to 3%, 2% and 1% (2020). For 2018, $10,000 of interest and dividends for a single filer under the exemption rules gives $262.50.
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What the Hall income tax was
The Tennessee Department of Revenue describes the Hall income tax as imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock. It was enacted in 1929 and named for the senator who sponsored the legislation. Wages and salaries were not the tax base. The department says the Hall income tax was repealed for tax periods beginning on or after January 1, 2021, and that you should not file a return for any tax year that begins on or after that date.
Rates in the last years before repeal
| Tax year beginning January 1 | Hall tax rate on taxable income |
|---|---|
| 2017 | 4% |
| 2018 | 3% |
| 2019 | 2% |
| 2020 | 1% |
| 2021 and after | Repealed |
Exemptions that applied
The tax did not apply to the first $1,250 of income on each individual return or the first $2,500 of joint income on a joint return. Anyone age 65 or older whose total annual income was below set limits was completely exempt, where total annual income meant income from any and all sources, including Social Security. The limits for 2015 and after were $37,000 for single filers and $68,000 for joint filers; earlier years were $33,000 and $59,000 for 2013 to 2014, $26,200 and $37,000 for 2012, and $16,200 and $27,000 for 2000 to 2011. From 2018 on, individuals 100 or older, or joint filers where either spouse is 100 or older, were exempt. Legally blind and quadriplegic filers had their own exemptions.
Worked examples
For tax year 2018, a single filer with $10,000 of interest and dividends and no age exemption had $10,000 - $1,250 = $8,750 of taxable income, taxed at 3 percent: $262.50. For tax year 2020, joint filers with $5,000 of interest and dividends had $5,000 - $2,500 = $2,500 taxable, at 1 percent: $25.00. For any tax year beginning in 2021 or later the result is $0.00, because the tax no longer exists.
What this page does not say about other taxes
Repeal of the Hall income tax is not a statement about every Tennessee tax. This page covers only the Hall income tax as described by the Department of Revenue. Sales tax, franchise and excise tax on businesses, property tax and local taxes are separate and not covered here.
Method
The calculator subtracts the $1,250 individual or $2,500 joint exemption from interest and dividends, applies the rate for the tax year (4, 3, 2 or 1 percent), and returns $0 for age 65 and over with total income under the limit or for years from 2021. Blind, quadriplegic and age 100 exemptions are not modelled.
What this does not cover
- Tennessee sales tax, franchise and excise tax, property tax or local taxes.
- Blindness, quadriplegia and age 100 exemptions.
- Tax years before 2017.
- Penalties, interest or amended returns for repealed years.
Figures read from the sources below on November 11, 2026. Last updated November 11, 2026.
Sources
- Tennessee Department of Revenue: Hall income tax (retrieved November 11, 2026)
- Tennessee Department of Revenue: Due date and tax rates (retrieved November 11, 2026)
- Tennessee Department of Revenue: Exemptions and deductions (retrieved November 11, 2026)
Common mix-ups
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Often assumedTennessee still charges the Hall tax on interest and dividends.
What the source saysThe Department of Revenue says the Hall income tax was repealed for tax periods that begin on January 1, 2021 or later, and that you should not file a return for any tax year beginning on or after that date. [1]
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Often assumedThe Hall tax was a tax on wages and salaries.
What the source saysThe department says it was imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock. [1]
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Often assumedThe repeal happened in one step from a high rate to zero.
What the source saysThe department lists rates stepping down by tax year: 4 percent for tax years beginning January 1, 2017, 3 percent in 2018, 2 percent in 2019 and 1 percent in 2020, then repeal beginning January 1, 2021. [2]
- Tennessee Department of Revenue: Hall income tax
- Tennessee Department of Revenue: Hall income tax, due date and tax rates
Checked against these sources on .
Frequently asked questions
Does Tennessee have a state income tax?
The Hall income tax, which applied only to interest and dividends, was repealed for tax periods beginning January 1, 2021. This page does not cover other Tennessee taxes.
What did the Hall tax apply to?
Interest from bonds and notes and dividends from stock received by individuals and other entities, according to the Department of Revenue.
What was the last Hall tax rate?
1 percent of taxable income for tax years beginning January 1, 2020.
Should I file a Hall tax return now?
No. The department says not to file a return for any tax year that begins on or after January 1, 2021.
What was the general exemption?
$1,250 for each individual return or $2,500 of joint income on a joint return.
Who was exempt because of age?
People 65 or older with total annual income below $37,000 (single) or $68,000 (joint) for 2015 and after, and people 100 or older from 2018.
Is the Hall tax the same as a tax on wages?
No. The department describes it as imposed only on interest and dividends.
Not tax or financial advice
This page is general information from an unofficial guide, not tax or financial advice. Forms, instructions and limits are set by the IRS and can change. Confirm with the IRS or a tax professional. Nothing you type is sent anywhere. It runs in your browser.