The Hall tax was established by action of the Tennessee General Assembly in 1929, by Chapter 86, Public Acts of 1929, enacted on April 10, 1929. It is named for Frank S. Hall, the state senator who sponsored the legislation.
It's a great question to ask -- especially while you pore over tax forms this year. Seven U.S. states currently don't have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. And residents of New Hampshire and Tennessee are also spared from handing over an extra chunk of their paycheck on April 15, though they do pay tax on dividends and income from investments.
Here's a listing of each state's highest income tax rate and how much income you'll have to make to pay that rate. 1  Alabama: 5% on income over $3,000. 2  Alaska: No income tax. 3  Arizona: 4.54% on income over $150,000.  Arkansas: 7% on income over $ 1 32,600. California:10.55% on income over $1 million.  Colorado: flat 4.63% of federal taxable income.