Yes, TN, There Is a State Income Tax – And It’s Due April 15

State of Tennessee Press Release, March 16, 2010

NASHVILLE – The April 15 filing deadline for the individual income tax, also known as the Hall income tax, is right around the corner. Credit card payment and electronic filing options are available on the department’s Web site, www.TN.gov/revenue.

“I encourage individual income taxpayers to file and pay online at the department’s Web site,” said Commissioner Reagan Farr. “The department’s online services are not only convenient, but they can also help eliminate errors and reduce the time spent filing returns.”

The individual income tax is imposed on individuals and other non-corporate entities receiving interest from bonds and notes and dividends from stock at a rate of six percent of taxable income. The first $1,250 in taxable income received by a single filer is exempt. The first $2,500 in taxable income received by a joint filer is exempt. People over 65 with total income less than $16,200 for a single filer or $27,000 for a joint filer are exempt. More information is available on the department’s Web site.

Taxpayers can make credit card payments using the Department of Revenue’s secure electronic services accessible at www.TN.gov/revenue. MasterCard, American Express and Discover Card are accepted and will be charged an associated 2.49 percent processing fee. Online bill pay, professional privilege tax, individual income tax, sales tax and consumer use tax can also be paid by credit card via the department’s Web site. The department is continuing work to expand this convenient payment option to other online services.

In order to assist taxpayers with compliance to electronic filing, the Department of Revenue provides computer access in its offices in Chattanooga, Knoxville, Jackson, Johnson City, Memphis and Nashville. The department also offers an electronic commerce hot line to assist taxpayers and tax practitioners at (866) 368-6374. Nashville-area and out-of-state callers should dial (615) 253-0704. All taxpayer data, whether paper or electronic, filed with the Department of Revenue is confidential data protected under Tennessee law.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2008-2009 fiscal year, the department collected $10.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2008-2009 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.TN.gov/revenue