Retirement Tax Breakdown for Tennessee Residents

Complete Tennessee retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #7 of 51.

State Income Tax
No income tax
Capital Gains Rate
0%

Treated as capital income

Property Tax Rate
0.63%

#36 (High)

Sales Tax Rate
9.6%

State 7% + local avg 9.6%

Tax-Friendly State

Tennessee has no state income tax. Social Security, pensions, and capital gains are all tax-free. Property taxes are low. Sales tax is among the highest in the US.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Not taxed

Retirement Exemption

None

Tax Comparison Summary

State income tax0%
Capital gains0%
Property tax0.63% effective
Sales tax9.6% combined
Overall retiree rank#7 of 51

Explore Other States

AlaskaFloridaWyomingMississippiSouth DakotaNevadaArizonaNew Hampshire

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