Tennessee Tax Refund Status 2015 – 2016 Online

If you are a resident of Tennessee and you accumulated taxable income from interest or dividends totaling over $1,250 as a single tax filer or $2,500 if married and filing jointly then you will be required to file a Tennessee state income tax return. As part-time resident the very same rule applies to you only for that taxable income that you’ve accumulated from a source inside Tennessee.

In the state of Tennessee income from wages and salaries is not taxed. The taxable income you receive from dividends, interest, and stocks or bonds will all be taxed at a flat rate of 6%.

Here’s a look at what can be considered taxable income:

Income from investment trusts and mutual funds

Market value of stock in a corporation given by another corporation as a dividend in the regular course of business

Distributions based on stock ownership to shareholders in an S corporation

Interest from bonds of states, counties, and municipalities outside of Tennessee

Bonds of foreign governments

Church bonds

Bonds, mortgages, trusts, deeds of trust, personal notes, promissory notes, installment notes, commercial paper, or other written instruments

Any interests or dividends you received as a beneficiary of a trust or estate located outside Tennessee unless it was derived from a nontaxable source

Dividends or interest from the federal national mortgage association, government national mortgage association, or federal home loan Mortgage Corporation

State Tax Filing Refund calculator

 Dividends from stock in:


Insurance companies not licensed to do business in Tennessee

All manners of holding companies

State-chartered banks outside of Tennessee not doing business inside the state

In the state of Tennessee, however, if you’re legally blind (meaning you’re not better than 20/200 in your best eye with corrective lenses or if the widest diameter of the visual field subtends to an angle no greater than 20 degrees) then you are exempt from paying income taxes. This is something that a physician will have to vouch for.

There is a 7% sales tax on tangible property and most goods besides prescription drugs. Tennessee does have an inheritance tax but the estate tax is limited and related to federal collection.


If you’re wondering where to find the tax forms you need then you should refer to our forms page where they are available for you.

However, like most states, Tennessee would like to encourage you to e-file your taxes this year as it saves everyone time and money while saving all that paper that we’d otherwise waste!

State Tax Filing Refund calculator

Tennessee State Income Taxes 2015 – 2016

Tennessee tax basis is interest and divident income.

Interest/Divident Income: Exempts U.S. government bonds. Interest on certificates of deposit, passbook accounts, savings accounts, checking accounts, money market accounts, short-term commercial paper, insurance policies (if payable on demand), and repurchase agreements are exempt. Dividends from state banks, national banks, savings and loans located in Tennessee, insurance companies, loan companies, and cemetery companies in Tennessee are exempt. All income from a credit union is exempt, as are distributions from education and Roth IRAs.

Rent Income: Exempt.

Capital Gain: The capital gains are exempt from state taxes with the exception of capital gains from the sale of mutual funds.

Unemployment Income: Unemployment income is exempt from state taxes.

Social Security Benefits: All social security income is exempt from state taxes.

State Bond Interest: Taxable except Tennessee obligations

Health Savings Accounts: There is no provision for state tax tax deduction from for the Health Saving Accounts.

Disability: Exempt

Lottery: Exempt

State Tax Filing Refund calculator

Federal Income Tax: Not deductible

Other Taxes: Taxable income derived from circumstances resulting in an individual becoming a quadriplegic is exempt.