States
Insurance & Tax Services in Tennessee
Tennessee has no state income tax on wages, which changes the tax conversation entirely, and its auto requirements sit at the lower end. Both facts mean the default advice people get elsewhere does not transfer cleanly here.
Tennessee · Minimum required coverage
The property damage minimum rose from $15,000 to $25,000 effective January 1, 2023, and the limits are unchanged for 2026.
25/50/25
- Bodily injury per person
- $25,000
- Bodily injury per accident
- $50,000
- Property damage
- $25,000
Uninsured motorist coverage must be offered but may be declined in writing.
Requirements change. Confirm current limits with the state before you buy. Tennessee Department of Commerce & Insurance
What the state requires
- Liability coverage of 25/50/25 is the statutory minimum.
- The property damage minimum rose from $15,000 to $25,000 effective January 1, 2023 — an older policy that was never re-rated may no longer satisfy the requirement.
- Uninsured motorist coverage must be offered by the insurer but may be declined in writing, unlike South Carolina where it is mandatory.
- Tennessee runs an electronic insurance verification system and suspends registrations for unverified vehicles, with reinstatement fees attached.
- Tennessee uses modified comparative fault with a 50% bar — you can recover only if you are less than 50% at fault.
Taxes in Tennessee
Tennessee does not tax wage income, so there is no state individual income tax return to file on your wages. The Hall income tax on interest and dividends was fully repealed as of 2021. Businesses still face franchise and excise tax obligations, which is where our small business clients in Tennessee actually need help.
Our tax preparation servicesWhat we write in Tennessee
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Common questions
Do I need to file a Tennessee state income tax return?
Not on wage income — Tennessee does not tax wages, and the old Hall tax on interest and dividends was fully repealed in 2021. If you run a business, franchise and excise tax may still apply, and that is worth a conversation.
My Tennessee policy is a few years old. Is it still compliant?
Check the property damage limit. The minimum went from $15,000 to $25,000 in January 2023. Most carriers updated policies automatically, but an older or lapsed policy may not meet the current requirement. Send us the declarations page and we will confirm.
Can I decline uninsured motorist coverage in Tennessee?
Legally yes, in writing. We generally advise against it. Uninsured motorist coverage is inexpensive relative to what it does, and it is the coverage that protects you from the drivers who made the opposite choice.
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