Does Tennessee tax retirement income?

No. Tennessee has no income tax, so Social Security, pensions, IRAs, 401(k)s and military retired pay aren't taxed.

Does Tennessee have a state income tax in 2026?

No. The Hall tax on interest and dividends ended in 2021.

Does Tennessee have property tax?

Yes. Homeowners pay county and city property tax, about 0.52% of home value a year on average.

What property tax relief do seniors get in Tennessee?

Homeowners 65+ with 2025 income up to $38,470 can get a state reimbursement on the tax on the first $33,600 of market value. Some counties also offer a tax freeze.

Do disabled veterans pay property tax in Tennessee?

Veterans with a permanent and total service-connected rating get relief on the tax on the first $175,000 of their home's value, with no income limit.

Tennessee retirement taxes in 2026: no income tax, and what property tax relief covers

Short answer

Tennessee has no state income tax, so Social Security, pensions, IRA and 401(k) withdrawals, and military retired pay are not taxed by the state. The tax on interest and dividends (the Hall tax) ended in 2021. For homeowners, Tennessee's Property Tax Relief program reimburses part of the property tax for people 65 and older with 2025 income up to $38,470. Disabled veterans who are rated permanent and total get relief on the first $175,000 of their home's value, with no income limit.

Not tax advice. Rules change; confirm with the Tennessee Comptroller, your county trustee or a tax professional.

Tennessee at a glance (2026)

	Tennessee
State income tax	None (Hall tax on interest and dividends repealed from 2021)
Social Security	Not taxed
Military retired pay and SBP	Not taxed
Pensions, IRA, 401(k)	Not taxed
65+ property tax relief	State reimbursement; 2025 income up to $38,470; on the first $33,600 of market value
Disabled veteran relief	On the first $175,000 of market value; no income limit; permanent and total rating
Tax freeze (65+)	Local option, only where the county or city adopted it
Average property tax	About 0.52% of home value a year

Income tax

Tennessee has no tax on wages or retirement income. The Hall income tax on interest and dividends was fully repealed for tax periods beginning January 1, 2021. Sources: Tennessee Department of Revenue, GEN-34 (Aug 2024) and HIT-3.

Property tax relief for homeowners 65+

Property Tax Relief (2026 program year) is a state reimbursement of part of your property tax. It is not an exemption: you pay the bill, then get money back.

Age: 65 or older by December 31, 2026.
Income: $38,470 or less in 2025, counting you, your spouse (even if not on the deed), and any co-owners.
Amount: calculated on the tax on the first $33,600 of your home's market value.
How: apply with your county trustee (or city collecting official) when you get your 2026 tax bill. Deadline: 35 days after the delinquency date, and the taxes must be paid.

Source: Tennessee Comptroller of the Treasury, 2026 Tax Relief brochure.

Tax Freeze (local option): some counties and cities freeze property taxes for qualifying homeowners 65+ at a base-year amount, with a county-specific income limit. You reapply each year with the trustee. Ask your county trustee whether yours participates. Source: University of Tennessee County Technical Assistance Service, Property Tax Freeze Act.

Disabled veterans

Disabled Veteran Property Tax Relief applies to the tax on the first $175,000 of your home's market value, with no income limit, if the VA rates your service-connected disability permanent and total (or a 100% P&T disability from POW service, or paraplegia, legal blindness or loss of use of two or more limbs from a service-connected cause). Unremarried surviving spouses can qualify. Apply with Form F-16 (F-16S for surviving spouses) at the county trustee. Source: Tennessee Comptroller, 2026 Tax Relief brochure; TCA 67-5-704.

Property tax overall

Tennessee homeowners pay about 0.52% of their home's value in property tax a year on average. Source: Tax Foundation, 2026 Tennessee profile.

Common mistakes

Treating relief as an exemption. You must pay the bill first, then claim the reimbursement before the deadline.
Forgetting the spouse's income. It counts, even if the spouse isn't on the deed.
Assuming "100%" is enough. The VA rating must be permanent and total.
Thinking interest and dividends are still taxed. The Hall tax ended in 2021.

Moving here?

Retiring to Clarksville or Nashville: what your home sale leaves you, and the drive to the hospital and VA
PCS to Fort Campbell: BAH, neighborhoods and gate drive times
How Tennessee's property taxes compare: Tennessee vs other states
Federal rules: Is military retirement taxable?

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FAQ

Does Tennessee tax retirement income?: No. Tennessee has no income tax, so Social Security, pensions, IRAs, 401(k)s and military retired pay aren't taxed.
Does Tennessee have a state income tax in 2026?: No. The Hall tax on interest and dividends ended in 2021.
Does Tennessee have property tax?: Yes. Homeowners pay county and city property tax, about 0.52% of home value a year on average.
What property tax relief do seniors get in Tennessee?: Homeowners 65+ with 2025 income up to $38,470 can get a state reimbursement on the tax on the first $33,600 of market value. Some counties also offer a tax freeze.
Do disabled veterans pay property tax in Tennessee?: Veterans with a permanent and total service-connected rating get relief on the tax on the first $175,000 of their home's value, with no income limit.

Sources

Last reviewed October 21, 2026. Not tax advice.