Updated October 4, 2026. Quick answer: No. Tennessee has no tax on wages or pension income. The Department of Revenue says “The Hall Income tax was repealed for tax periods that begin on” January 1, 2021 or later, and the constitutional amendment text bars a state or local tax on payroll or earned personal income.
How Tennessee treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | No Tennessee tax on military retired pay |
| Hall income tax | On interest and dividends only; repealed for tax periods beginning January 1, 2021 or later |
| Constitution | Article II, section 28 text in Senate Joint Resolution 1 bars a state or local tax on payroll or earned personal income |
A $30,000 example
A retiree with $30,000 of military retired pay owes Tennessee $0 of income tax on it.
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What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Tennessee taxes pensions, how Tennessee taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- Hall Income Tax: https://www.tn.gov/revenue/taxes/hall-income-tax.html
- Senate Joint Resolution 1 (108th General Assembly), proposed Article II, Section 28 amendment: https://www.capitol.tn.gov/bills/108/bill/sjr0001.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.