The Tennessee Individual Income Tax (Hall tax) is computed on the dividend and interest income of individuals and partnerships. A partnership that is subject to this tax may claim an amount equal to the tax paid on form FAE170 Schedule D as a credit against the excise tax. A Subchapter S Corporation should never claim this credit because this type of entity is not subject to the Hall tax.
The Hall tax is 0% for tax years beginning on or after January 1, 2021.
Reference: Tenn. Code Ann. §§ 67-2-102; 67-4-2009(7).