It may be a few more years before it comes to fruition, but the Volunteer State finalized plans to eliminate its state income tax when Governor Bill Haslam signed the bill into law earlier this week. The legislation (SB 0047), passed in the waning days of its 2016 session, provides that the income tax rate drops from 6 to 5 percent for 2016 taxes and that it further be reduced 1 percent annually beginning in 2017 until it is eliminated in 2022. Currently, like the state of New Hampshire, Tennessee income taxes apply only to certain dividends and interest and not to wages or salaries. There are currently seven other states with no state personal income tax at all (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming). If subsequent legislatures do not amend the law, Tennessee will joint that taxpayer-elite group.