we have what is called the Hall Income tax......which is a tax  on certain non-bank interest, and most dividends,  and capital gains distributions from  mutual funds  There is NO state income tax on earned income (w2s, guaranteed payments, self-employment earnings, etc). This has been in effect since 1929. was 6% forever, but the legislature enacted a 1% annual reduction in the tax rate, til it goes away... which is 2021.  this is the last year of it...1%.

if you see a w2. with TN Income tax withheld....then something very fi$hy with that employer accounting $y$tem.