The Hall Tax applies to residents who receive interest or dividends on investments such as bonds, according to the TDR. While the state has no income tax on earned income, it does tax income on this revenue.
Taxpayers will now have until July 15 to file returns and make any payments originally due on April 15. Interest and late filing penalties will not be applied to returns filed and payments made on or before the new date.
“We are committed to helping taxpayers,” Revenue Commissioner David Gerregano said in a news release. “We know that taxpayers are doing all they can to meet the current challenges while continuing to comply with state tax requirements. We hope to offer some relief through the extension of these deadlines.”
As part of Tennessee’s IMPROVE Act, the Hall Tax will be decreased by 1% annually until 2021, when it will be eliminated completely.