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Tax Relief for Seniors

Home » 2013 Legislation » Tax Relief for Seniors

Governor Haslam's approach to the state budget is to manage conservatively by investing in priorities that will bring a measurable return on investment to the state, replenishing reserves, avoiding debt, and finding efficiencies to put more money back in the hands of taxpayers.

What is Changing?

  • The Hall Tax, enacted in 1929, is a tax imposed on individuals and other entities receiving interest from bonds, notes, and stock dividends.
  • Seniors are far more likely to own stocks that pay dividends than other demographic groups, and many retirees rely on stock dividends for their income.
  • Seniors who have worked hard to save their money and who have made wise investments over the years should not be penalized by taxes.
  • In 2011, Governor Haslam and the General Assembly raised the Hall Tax exemption level for taxpayers age 65 and up by $10,000 for both single and joint filers. 
  • This year, Governor Haslam is proposing to raise the exemption level again to continue to reduce the tax burden on seniors.
  • This year's legislation increases the Hall Tax exemption level for individuals who are 65 years and over for the tax year beginning January 1, 2013.
  • Single filers with a total annual income of $33,000 or less will be exempt from the Hall Tax.
  • Joint filers, with either spouse 65 years or over and having total annual income of $59,000 or less, will also be exempt from the Hall Tax.

Tax Filer

Current Law Exemption Level

Proposed Law Exemption Level

Single Filer

$26,200

$33,000

Joint Filer

$37,000

$59,000

  • According to Tennessee Department of Revenue projections, this tax cut will result in a decrease in revenue of $1,485,100 to the state and $789,200 to local governments. (3/8 of Hall Tax collections are apportioned back to the county or incorporated city where the individual income taxpayer resides.)
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