HIT-18 - Pension Income, Social Security, 401(k), and IRA Distributions

Tennessee has no individual income tax on wages, employer sponsored retirement income or most other forms of income. Because the Tennessee income tax does not apply to salaries and wages, items of income such as Social Security and pension income are also not subject to state tax. This also includes distributions from accounts like IRAs and 401(k) plans. In addition, distributions from annuities are not subject to Tennessee tax.