No State Income Tax
Tennessee has no state income tax; military retirement pay, VA disability compensation, and TSP distributions are not taxed.
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Apply directly through the official Tennessee agency.
About this benefit
Overview
Tennessee has no state income tax. Military retirement pay, VA disability compensation, and TSP distributions are not taxed at the state level. This applies to all Tennessee residents.
Verified against official source
Last checked 2026-05-04 against www.tn.gov. Always confirm current rates and rules with the Tennessee state agency before applying.
Other Tennessee Tax Benefits
Property Tax Relief for Disabled Veterans
Reimbursement/exemption of property taxes on first $175,000 of market value for 100% P&T disabled veterans.
$1,000-$3,000+/year
County Motor Vehicle Privilege Tax Exemption
Exemption from county motor vehicle privilege tax (wheel tax) for 100% disabled veterans and former POWs.
$25-$100/year
Specially Adapted Vehicle Tax Exemption
Exemption from sales tax, registration fees, and local motor vehicle privilege taxes on vehicles donated/sold to disabled veterans with VA grants.
Thousands in tax savings
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