Tenn. Code Ann. § 67-10-103: Contributions - Exemption from taxation

(a) For taxable years beginning after 2007, contributions may be made into a health savings account by or on behalf of a resident of Tennessee, pursuant to § 67-10-102 .

(b) Except as provided in § 67-10-105 , principal contributed to and interest earned on a health savings account and money reimbursed to an eligible individual or an employee for qualified medical expenses are exempt from taxation under chapter 2 of this title.