Legislation Providing Hall Income Tax Relief for Senior Citizens Heads For Governor’s Signature

More senior citizens will qualify for Hall income tax relief under legislation approved by the Tennessee House of Representatives this week. House Bill 192 is part of Governor Bill Haslam’s legislative package to provide tax relief to citizens across the state.

The Hall tax is imposed on income derived from interest on bonds, notes, and stock dividends.   Since enactment of the Hall tax in 1929, the use of investment savings has grown as a primary source of retirement income. As such, the legislation approved this week raises the Hall income tax exemption level for citizens age 65 and older from $26,200 to $33,000 for single filers and from $37,000 to $59,000 for joint filers.

The action by Republican lawmakers builds on Hall tax relief efforts taken in 2011 which raised the exemption level for senior citizens from $16,200 to $26,200 for single filers and from $27,000 to $37,000 for joint filers.