Tennessee
Every equity-comp topic that hits differently in Tennessee. Written for tech employees earning RSUs, ISOs, NSOs, ESPPs, or pre-IPO stock.
No state income tax as of 2021.
Topics for Tennessee
- rsu taxRSU taxes: withholding, supplemental wages, and state nexus
Tennessee has no state income tax, but federal and trailing-state rules still apply to RSU vesting. Here's what actually changes.
Open - iso amtISO exercises and AMT
Tennessee does not run a separate state AMT. Federal AMT still applies on your ISO bargain element; we walk through the interaction.
Open - capital gainsCapital gains tax: long-term vs short-term, RSU sale edge cases
Tennessee has no state income tax, but Washington's 7% gains tax and federal NIIT still apply. Here's what Tennessee residents actually pay.
Open - qsbsQSBS: federal Section 1202 and state conformity
Whether Tennessee honors the federal QSBS gain exclusion on Section 1202 stock — and what it means for founders and early employees selling after five years.
Open - moving with-equityMoving to or from Tennessee with unvested equity: trailing nexus rules
How Tennessee sources RSU, ISO, and NSO income when vesting straddles your move. Covers workday-allocation, grant-to-vest rules, and what to tell your payroll team.
Open - rsu vestingRSU vesting schedules: cadence, withholding, and annual tax cycle
Tennessee has no state income tax on RSU vests, but federal withholding, NIIT exposure, and trailing-state rules still shape the vesting cycle. Here's the actual cadence.
Open - espp stateESPP taxation: ordinary income, qualifying dispositions, and payroll
Tennessee has no state income tax, so ESPP discount income is federal-only. Here's what that actually means for same-day and long-hold sales.
Open - nso stateNSO exercises and state tax
Tennessee taxes no ordinary wage income, so NSO exercise spread costs you only federal (up to 37%) plus Medicare. The "state discount" is real and worth planning around.
Open - 401k state-tax401(k) and retirement accounts: state deduction and Roth considerations
Pre-tax 401(k) contributions give no state-level deduction in Tennessee (there's no state income tax to reduce), which tilts the calculus toward Roth 401(k) more than in high-tax states.
Open - moving outLeaving Tennessee: how to cleanly break residency before a liquidity event
Tennessee already has no income tax, but the year you move out matters if your destination state does. What follows covers the audit factors and the records to keep.
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