Newcomers to Tennessee will be pleased to learn that the state is one of the few that does not impose a personal income tax on wages or salaries. The income tax does apply to most income from stocks, bonds, and notes receivable. Certain income is exempt, so consult the Department of Revenue for complete information or answers to your specific questions:
Tennessee Department of Revenue
Taxpayer Services
500 Deaderick Street
Nashville 615-253-0600
www.state.tn.us/revenue
Pensions, Social Security & IRAs
Since the Tennessee income tax does not apply to salaries and wages, items of income such as social security and pension income are not subject to state tax. Income from stocks and bonds of pension trusts and profit sharing trusts that are exempt from federal income taxation are also exempt from state tax. This includes such accounts as IRAs and distributions from IRA accounts.
Sales & Use Taxes
Tennessee state sales and use taxes are both imposed at a rate of 7 percent. Local jurisdictions tend to raise this rate by an average of 2.25 percent. Food and food ingredients are taxed at 6 percent. Nearly 75 percent of the sales and use tax dollars support education. Among the other major state taxes are petroleum taxes, corporate franchise taxes, and excise taxes.
Property Tax
Levied by the county and municipal governments, the property tax rates apply to each $100 of assessed value of property. The assessment ratio applied to residential property is 25 percent. Most municipalities and some special school districts impose additional tax levies.
Tennessee offers anglers world-class opportunities to pull a variety of fish from 28 major reservoirs as well as 19,000 miles of streams, numerous lakes and ponds. The state is also rich in gamelands for small and large-game hunting. Licenses for fishing and hunting are required for adults in Tennessee. The fees for licenses vary with your residency status, the type of license, and the duration of the license. Licenses with the exception of the Lifetime Sportsman License are available from county clerks, sporting and hardware stores, boat docks, and Tennessee Wildlife Resources Agency (TWRA) regional offices. Licenses can be ordered by phone with a major credit card. For answers to specific questions about hunting or fishing in Tennessee, contact:
Tennessee Wildlife Resources Agency
615-781-6500
www.state.tn.us/twra
Watercraft Registration
All boats equipped with any type of motor or sail must be registered in the state of Tennessee. Newcomers have 60 days to use their vessels on Tennessee waters with the previous state’s registration before complying. Contact the TWRA office for a booklet on boating laws or answers to specific questions:
Tennessee Wildlife Resources Agency
Boating Safety 615-781-6682
Boat Registration 615-781-6522
www.state.tn.us/twra
PET LICENSES
The regulations on pet licensing and immunization against rabies vary with your municipality and county jurisdiction. Contact your local animal control office for details on the regulations in your area. Pet licensing safeguards public health but also facilitates identification of lost pets.