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Tennessee doesn't have a state income tax so your W-2 is correct.
Tennessee has a "hall tax" -- that is, a 6% tax on interest and dividends, which is specifically allowed by the state constitution. Tennessee also has a 7% sales tax. See These States Don't have Income Tax for additional information.
No. TN does not have a regular income tax.
TN does tax interest and dividend income, only, starting at $1,250 ($2,500 if married filing jointly).
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