I reside in CA and own a rental property in TN, do I have to report rental income in TN and pay TN state tax?

[DoninGA · Accepted solution]

Tennessee does not have a personal income tax so there is not a state tax return to file in TN.

[Carl]

Yes. You will file a TN non-resident return. More than likely "on paper" the rental will show a loss. Therefore no tax due. However, you still need to file a TN return to show that, since you have an income producing activity in TN.

Make sure you file your resident state return LAST. Otherwise, the program will not properly account for any tax agreement between the two states so you're not double-taxed.  Remember, you still have to report the rental on your CA tax return to, since CA is your resident state.

[jchaulee]

I am trying to avoid TT $45 charge to add another state to file as a non-resident. Yes, I am filing as income in CA for this TN rental property.

[DoninGA]

@Carl @jchaulee Tennessee no longer has any type of personal income tax, so there is not a resident or nonresident tax return to file in Tennessee.