State Income Tax Ban Approved By Tennessee Voters

There have not been any proposals to create an income tax in Tennessee in over a decade, but supporters of the ban argued it would be foolish to leave the door open to politicians. Credit: Nina Cardona/WPLN

Voters have cemented Tennessee’s status as one of just nine states without a tax on personal wages. A constitutional amendment clearly banning both income and payroll taxes was approved with roughly two-thirds of the vote.

Watching returns at Governor Bill Haslam’s victory party, State Rep. Barry Doss said he felt the income tax measure was one of the most important items on the ballot.

“You heard the governor tonight say that we created 176,000 jobs in this state,” Doss said, “and I think the number one reason is because we’re a tax-free state.”

The amendment does not do away with the existing Hall Income Tax, which applies to dividends and interest. Efforts to do away with that tax are expected to reemerge in the next legislative session.