According to the Tennessean, a number of groups have set their sights on the repeal of Tennessee’s Hall Income Tax—even enlisting more than 90 legislators by having them sign pledges. These groups include the Tennessee Chapter of Americans for Prosperity, Americans for Tax Reform and the Tax Foundation.
Whoa, wait—Tennessee income tax? That’s right, Tennessee does have an income tax. The Hall income tax is a tax that Tennesseans pay on dividends and interest.
Although many legislators have signed on to repeal, unless and until Tennessee solves its revenue problem, it seems unlikely that the tax is going anywhere. That being said, many professionals said the same thing about the Tennessee Gift and Inheritance Taxes. The Tennessee Gift Tax was repealed in 2012 and the Tennessee Inheritance Tax has been gradually repealed through 2016.
Thank you to Justin Carter, CPA of the Marston Group for bringing this to my attention.