As a fiduciary financial advisor in Tennessee, Holland Capital builds written retirement plans for a state with no individual income tax, then invests your savings to match. Tennessee clients work with us by video and phone, and meet in person by appointment at a meeting center near their city.

Tennessee does not tax wages, and it no longer taxes interest or dividends.

That means no state income tax on Social Security, pensions, or withdrawals from an IRA or 401(k). Federal tax rules still apply.

With no state income tax to plan around, the federal rules and your spending drive most decisions.

How Tennessee Taxes Retirement Income

Tennessee does not tax wages. Its Hall income tax, which applied to interest and dividends, was phased out and fully repealed starting January 1, 2021.

  • Social Security, pensions and IRA and 401(k) withdrawals are not taxed by Tennessee.
  • Interest, dividends and capital gains from a brokerage account are not taxed by Tennessee.
  • Federal tax rules still apply to that income.

Tennessee’s general state sales tax rate is 7%, and local rates can add up to 2.75%. We build that into your spending budget. See retirement planning for how we set withdrawals.

Property Tax Help for Homeowners 65 and Older

Tennessee has two programs that can lower property taxes for some older homeowners. The state Tax Relief program reimburses part of the tax for homeowners who qualify. The Property Tax Freeze can hold the property tax on a qualifying principal residence at a base amount tied to the year you first qualify.

The freeze applies only where the county or city has adopted it, and income limits differ by county. You apply locally, and each program needs its own application.

No Estate or Inheritance Tax

Tennessee has no estate tax. Its inheritance tax does not apply to anyone who died in 2016 or later. Large estates can still owe federal estate tax.

Inherited traditional IRAs can also create federal income tax questions for your heirs. Our estate and wealth transfer planning work covers that.

How We Work Across Tennessee

Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.

Holland Capital is based in Charlotte. Video and phone calls handle most of the work for Tennessee clients. In-person meetings are by appointment at the meeting center named on your city page.

The written plan comes first. Our investment management follows it, and tax-efficient investing guides choices such as which account to draw from.

The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.

Tennessee Communities We Serve

Nashville and Middle Tennessee

Southeast Tennessee

East Tennessee

West Tennessee

Frequently Asked Questions

Are Pensions and IRA Withdrawals Taxed in Tennessee?

Not by the state. Tennessee has no individual income tax, so pensions, IRA and 401(k) withdrawals and Social Security are not taxed by Tennessee. Federal tax rules still apply.

Why Choose a Fiduciary Financial Advisor for a Tennessee Retirement?

Holland Capital acts as a fiduciary when providing financial planning and investment advice. For a Tennessee retiree, that means building withdrawals around federal tax and your spending, with your interests first.

Some advice can increase what we earn, such as moving a 401(k) into an account we manage. We tell you before you decide.

Do You Serve Tennessee Clients from Charlotte?

Yes. Most planning meetings happen by video or phone. Each city page names where we meet in person, by appointment.

Photo: w_lemay / Wikimedia Commons / CC BY-SA 2.0, cropped.