- Do Tennessee residents pay state income tax?
No. Tennessee workers must pay taxes on interest and dividends earned, but not on regular earnings.
- What are the tax rates for investment interest and dividends in Tennessee?
The tax rate for investment interest is 5%. For dividends, the state withholds 2%.
- What are Tennessee’s policies on termination pay?
The state requires that all terminated employees receive any remaining wages earned by the next regular paycheck day or within 21 days, whichever is later.