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401(k) and IRA withdrawals are all untaxed at the state level, and the Hall tax on interest and dividends was fully repealed as of tax year 2021 (older articles still claiming Tennessee taxes investment income are out of date).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.
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| State income tax | None (Hall tax on interest/dividends repealed as of TY2021 — former Tenn.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 | None (phased out after 2015) |
| Inheritance tax | None — and note the common conflation: Tennessee’s repealed tax was an inheritance tax; there is no state estate tax either |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 approved by the probate court (Tenn. Code Ann. §30-1-407). Small estates: up to $50,000 of personal property can pass by affidavit under the Tennessee Small Estates Act (Tenn. Code Ann. §§30-4-102, 30-4-103) after a 45-day wait unless waived. Court filing fees are set per county — commonly in the $150–$400 range to open, metro counties toward the high end. 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.
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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 fee” 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.