Updated September 4, 2026. Quick answer: No. Tennessee’s old Hall income tax on interest and dividends, which never applied to pensions, wages, or retirement-plan withdrawals in the first place, was fully repealed for tax years beginning January 1, 2021 or later. Tennessee has no individual income tax of any kind today.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Tennessee tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Tennessee tax 403(b) and 457(b) withdrawals.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Tennessee a community property state?.
Two Tennessee city and metro pension systems, with option, refund and survivor rules from their own documents: Metro Nashville pension decisions and Memphis city retirement decisions.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Tennessee tax withholding on IRA and 401(k) withdrawals.
Taking money out of your TSP? How the state taxes it, from its own tax documents: Does Tennessee tax TSP withdrawals?.
A pension earned in another state, or paid after a move, is covered here: does Tennessee tax out-of-state pensions.
Trusts have their own page: does Tennessee tax trust income.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Tennessee have an inheritance tax?.
Dividends and interest have their own page: does Tennessee tax dividends and interest.
Contributing to an HSA? How the state taxes it, from its own tax documents: Does Tennessee tax HSA contributions?.
Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does Tennessee have a gift tax?.
Annuity payments have their own page: does Tennessee tax annuity income.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Tennessee have an estate tax?.
Saving for a child’s college? The state’s 529 break has its own page: Tennessee 529 plan tax deduction.
Military retired pay has its own page: does Tennessee tax military retirement.
Selling stocks, funds or real estate has its own page: does Tennessee tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Tennessee tax 401(k) and IRA withdrawals.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Tennessee taxes retirement income generally.
The rule in the source’s own words. Tennessee Department of Revenue, Hall Income Tax page: “The Hall Income tax was repealed for tax periods that begin on January 1, 2021 , or later.” (source, read October 5, 2026). This page’s governing citation: Tenn. Dept. of Revenue, Hall Income Tax page.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Not taxed: there is no state income tax to apply to it (and the Hall tax, even before repeal, never reached pension income). |
|---|---|
| Private (employer) pensions | Not taxed, for the same reason. |
| Federal government pensions (FERS/CSRS) | Not taxed, for the same reason. |
| Military retirement pay | Not taxed, for the same reason. |
| IRA and 401(k)/403(b) distributions | Not taxed, for the same reason. |
| General retirement-income exclusion | Not applicable: there is no income tax to exclude retirement income from. |
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Social Security is not taxed either, for the same reason. Social Security has its own rules in every state; see the full breakdown in how Tennessee taxes retirement income generally.
Figures verified against the Tennessee Department of Revenue Hall Income Tax page on September 30, 2026.
Statute and sources
Governing citation: Tenn. Dept. of Revenue, Hall Income Tax page.
Read September 4, 2026.
Related: how Tennessee taxes retirement income generally · does Tennessee tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.