On May 20, 2016, Governor Haslam signed into law a gradual repeal of the Hall Income Tax. For the 2016 tax year, the tax rate drops to five percent (5%) from the previous rate of six percent (6%). It is the intent of the Tennessee General Assembly to further reduce the tax rate by an additional one percent (1%) each year until 2021; however, each year the General Assembly must pass legislation to enact the further rate reductions. The Hall Income Tax is fully repealed for tax years that begin on or after January 1, 2022.
For more information regarding the Hall Income Tax, please use the following link: Hall Income Tax
Please feel free to reach out to your Pugh CPAs advisor–865-769-0660 if you have any questions.