Do I need to pay income tax on my retirement benefits in Tennessee?

In Tennessee, residents do not pay state income tax on their retirement benefits. This includes Social Security benefits, pensions, and most other retirement income. The state of Tennessee has chosen not to impose a tax on individual income, making it one of the few states in the United States without a personal income tax. However, Tennessee does have a tax on interest and dividends known as the Hall Income Tax, which is being phased out. As of January 2021, this tax is eliminated, meaning that income from dividends and interest is no longer subject to state taxation either. It is important to note that while the state does not impose an income tax on retirement benefits, individuals should still be aware of federal income tax requirements for these benefits. For more information, including any updates or specific details related to retirement income and taxation, it would be useful to refer to the official Tennessee Department of Revenue website.