Clear Money Guide
What this state guide covers
A quick view of the questions, practical details and source notes below.
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2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.
Updated July 24, 2026. Quick answer: Tennessee levies no personal income tax — Social Security, pensions, 401(k) and IRA withdrawals are all untaxed at the state level, and the Hall tax on interest and dividends was fully repealed as of tax year 2021 (older articles still claiming Tennessee taxes investment income are out of date). There is no estate or inheritance tax either — Tennessee’s inheritance tax was fully phased out for deaths after 2015. What remains is the cost of settling an estate, which this page quantifies.
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?.
Before the tax question, 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.
Selling your home? How the state taxes the profit, from its own tax documents: Does Tennessee tax the profit from selling your home?.
Taking money out of your TSP? How the state taxes it, from its own tax documents: Does Tennessee tax TSP withdrawals?.
For a pension earned elsewhere or paid after you move: does Tennessee tax out-of-state pensions.
For trust income specifically: 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?.
For dividends and interest specifically: 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?.
For annuity payments specifically: 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.
For military retired pay: does Tennessee tax military retirement.
For the sale of stocks, funds or real estate: does Tennessee tax capital gains.
For 401(k) and IRA withdrawals specifically: does Tennessee tax 401(k) and IRA withdrawals.
The income-tax picture
| State income tax | None (Hall tax on interest/dividends repealed as of TY2021 — former Tenn. Code Ann. §67-2-102) |
| Social Security / pension / 401(k) / IRA | Not taxed |
| Estate tax | The inheritance tax in the next row ended for deaths in 2016 or later |
| Inheritance tax | None — and note the common conflation: Tennessee’s repealed tax was an inheritance tax; there is no state estate tax either |
What settling an estate costs in Tennessee
No statutory fee percentage: personal-representative and attorney compensation is reasonable compensation (Tenn. Code Ann. §§30-2-317, 30-2-606). Small estates: if the probate property is $50,000 or less and consists only of personal property, an heir can petition for limited letters under the Small Estate Probate Act (Tenn. Code Ann. §§30-4-102, 30-4-103) once 45 days have passed since the death; the court may waive the 45 days for good cause. Court filing fees are listed in each county clerk’s published schedule under Tenn. Code Ann. §8-21-401. For 2026, the schedules list $334.50 to open an estate in Davidson County, $354.50 in Hickman County and $389.50 in Hamilton and Knox counties. Context: probate cost by state · small-estate limits by state · will vs. trust calculator.
Is Tennessee a good state to retire in for taxes?
On state taxes over your lifetime and at death: as good as it gets — $0 on retirement income and $0 on estates, with a workable small-estate procedure. The honest framing for relocators: every no-income-tax state funds itself somewhere, and in Tennessee that means comparatively high sales taxes on spending — outside this guide’s scope, but worth checking against your own budget before a move. On the measures this page covers, Tennessee sits in the top tier with Florida and Texas.
Tennessee vs. other no- and low-tax retirement states
| State | Social Security | Pension / 401(k) / IRA | Estate tax | Inheritance tax |
|---|---|---|---|---|
| Tennessee | Not taxed | Not taxed (no income tax) | None | None |
| Florida | Not taxed | Not taxed (no income tax) | None | None |
| Texas | Not taxed | Not taxed (no income tax) | None | None |
| North Carolina | Not taxed | Taxed at flat 3.99% (2026) | None (repealed 2013) | None |
| Georgia | Not taxed | Excluded up to $65,000/person at 65+ ($35k at 62–64) | None | None |
Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.
Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Tennessee may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.
Finding a financial advisor in Tennessee
Per the SEC’s July 2026 Investment Adviser roster, Tennessee has 221 SEC-registered advisory firms (#19 nationally) managing $1.04 trillion (#19 by AUM). Full breakdown: Tennessee advisor statistics. A cross-state move is exactly when fee structures deserve a second look — see the fee-drag calculator.
Thinking about moving?
Four taxes change when you move state in retirement, not one: income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Corridor comparisons involving Tennessee:
- California to Tennessee retirement taxes
- Illinois to Tennessee retirement taxes
- New Jersey to Tennessee retirement taxes
- New York to Tennessee retirement taxes
- Ohio to Tennessee retirement taxes
- Pennsylvania to Tennessee retirement taxes
- Virginia to Tennessee retirement taxes
- Wisconsin to Tennessee retirement taxes
Moving to Tennessee? See retiring to Tennessee.
Compare any two states with the retirement tax comparison tool, or browse all corridors at the relocation hub.
What probate costs in Tennessee
Tennessee sets probate compensation by a “reasonable compensation” standard with no percentage schedule, so anyone quoting a firm figure is estimating. And the small-estate shortcut of $50,000 does not clear a solely owned house on its own, which is the detail most guidance omits. Full detail with the governing statute, the court filing fee and the threshold: Tennessee probate cost. To price a specific estate, use the probate cost calculator.
Cite or share this guide
Suggested citation: Clear Money Guide, “Tennessee Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/tennessee-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.
Figures verified against the Tennessee Department of Revenue Hall income tax and inheritance tax pages and a Hawkins County Chancery Court Small Estates Act form on September 30, 2026; the statute text for Tenn. Code Ann. §§30-1-407, 30-4-102, 30-4-103 and 67-2-102, county filing fees, comparison-state rows and the SEC advisor roster were not re-checked.