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Historic Rehabilitation Tax Credit in Tennessee 2026

Calculate your historic rehabilitation tax credit tax savings in Tennessee. Tennessee has no state income tax, so savings come from the federal level.

Tennessee Tax Overview

State Income Tax
None
none
Sales Tax
7%
avg combined: 9.55%
Property Tax Rate
0.66%
Median Income
$59,695

No income tax (Hall Tax repealed 2021). Highest combined sales tax (tied 9.55%). Low property taxes.

$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
22.0%
Combined Tax Rate

Historic Rehabilitation Tax Credit Savings Calculator for Tennessee

$
$

Federal Savings

$5,000

22% bracket

Tennessee State

$0

0% rate

Total Savings

$5,000

22.0% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Tennessee

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Tennessee has no state income tax — savings are from federal taxes only.

Eligibility Requirements

Owners of certified historic structures who undertake substantial rehabilitation

  • 120% credit for certified historic structures
  • 2Must be a substantial rehabilitation (exceed adjusted basis)
  • 3Must follow Secretary of Interior's Standards

Common Mistakes to Avoid

  • !Not getting Part 1 certification before starting work
  • !Failing to meet the substantial rehabilitation test
  • !Not spreading credit over 5 years as required

Tennessee Filing Tips

No income tax is a major benefit. Be aware of very high combined sales tax. Low property taxes help offset. No estate or inheritance tax.

Required Tax Forms

Form 3468NPS Form 10-168

File these forms with your federal tax return to claim the historic rehabilitation tax credit.

Other Tax Deductions in Tennessee

Mortgage Interest Deduction

Housing

~$3,500
est. savings

Property Tax Deduction

Housing

~$2,200
est. savings

Home Office Deduction

Housing

~$1,200
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$4,000
est. savings

PMI Premium Deduction

Housing

~$1,100
est. savings

Mortgage Points Deduction

Housing

~$2,000
est. savings

Historic Rehabilitation Tax Credit in Neighboring States

Kentucky

4% top rate (flat)

~$15,000
+10,000 vs Tennessee

Virginia

5.75% top rate (progressive)

~$15,000
+10,000 vs Tennessee

North Carolina

4.5% top rate (flat)

~$15,000
+10,000 vs Tennessee

Georgia

5.49% top rate (flat)

~$15,000
+10,000 vs Tennessee

Alabama

5% top rate (progressive)

~$15,000
+10,000 vs Tennessee

Mississippi

4.7% top rate (flat)

~$15,000
+10,000 vs Tennessee

Arkansas

4.7% top rate (progressive)

~$15,000
+10,000 vs Tennessee

Missouri

4.8% top rate (progressive)

~$15,000
+10,000 vs Tennessee

Tax Calculators for Tennessee Cities

NashvilleMemphisKnoxvilleChattanoogaClarksvilleMurfreesboroFranklinJohnson CityJacksonHendersonville

Calculate Your Full Tax Savings in Tennessee

Use our free tax calculators to optimize your entire tax return for Tennessee.

Income Tax CalculatorTennessee Income TaxFull Historic Rehabilitation Tax Credit Guide

Frequently Asked Questions

How much can I save with the Historic Rehabilitation Tax Credit in Tennessee?

In Tennessee, the historic rehabilitation tax credit can save you an estimated $5,000 per year on a $5,000 deduction. This includes $5,000 in federal tax savings. The national average savings is $15,000/year.

What is the Tennessee state income tax rate?

Tennessee has no state income tax, which means the historic rehabilitation tax credit only provides federal tax savings for Tennessee residents. No income tax (Hall Tax repealed 2021). Highest combined sales tax (tied 9.55%). Low property taxes.

Who qualifies for the Historic Rehabilitation Tax Credit in Tennessee?

Owners of certified historic structures who undertake substantial rehabilitation. The eligibility requirements are the same whether you live in Tennessee or another state, as this is a federal tax credit. However, your total savings will vary based on Tennessee's lack of state income tax.

What tax forms do I need to claim the Historic Rehabilitation Tax Credit in Tennessee?

To claim the historic rehabilitation tax credit, you need to file Form 3468 and NPS Form 10-168 with your federal return. Filing status affects your deduction limits and tax bracket.

Is the Historic Rehabilitation Tax Credit better in Tennessee than in states without income tax?

Since Tennessee has no state income tax, the historic rehabilitation tax credit only reduces your federal tax bill. Residents in states with income tax get additional state-level savings. However, Tennessee residents often benefit from lower overall tax burden.

What is the standard deduction in Tennessee for 2026?

Tennessee has no state income tax, so there is no state standard deduction. The federal standard deduction for 2026 is $14,600 for single filers and $29,200 for married filing jointly.

Related Calculators

Mortgage Interest Deduction in Tennessee

Avg savings: $3,500/year

Property Tax Deduction in Tennessee

Avg savings: $2,200/year

Home Office Deduction in Tennessee

Avg savings: $1,200/year

Home Energy Tax Credit in Tennessee

Avg savings: $1,800/year

Residential Solar Tax Credit in Tennessee

Avg savings: $7,500/year

Military Moving Expenses in Tennessee

Avg savings: $4,000/year