This article analyzes the one-dimensional steady temperature field and related thermal stresses in an annular disk of variable thickness that has a temperature-dependent heat transfer coefficient and is capable of temperature-dependent internal heat generation. The temperature dependencies of the thermal conductivity, Young's modulus, and the coefficient of linear thermal expansion of the disk are considered, whereas Poisson's ratio is assumed to be constant. The differential transform method (DTM) is employed to analyze not only the nonlinear heat conduction but also the resulting thermal stresses. Analytical solutions are developed for the temperature and thermal stresses in the form of simple power series. Numerical calculations are performed for an annular cooling/heating fin of variable thickness. Numerical results show that the sufficiently converged analytical solutions are in good agreement with the solutions obtained by the Adomian decomposition method and give the effects of the temperature-dependent parameters on the temperature and thermal stress profiles in the disk. The DTM is useful as a new analytical method for solving thermoelastic problems for a body with temperature-dependent parameters including material properties.