TN
✓ No State Income Tax

Tennessee Paycheck Calculator

See exactly what you take home after federal taxes, Social Security, and Medicare. Updated for 2026.

State tax: None SS: 6.2% Medicare: 1.45% 2026 brackets
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1099 freelancer note: You owe both halves of Social Security & Medicare — that's 15.3% self-employment tax on top of income tax. Quarterly estimated payments due Apr 15, Jun 16, Sep 15, Jan 15.
✓ Tennessee has no state income tax Tennessee has no income tax on wages (Hall Tax on investment income repealed in 2021). Residents keep more of every paycheck compared to most other states.

Why Tennessee Has No State Income Tax

Tennessee is one of nine states with no state income tax. Workers in Tennessee pay only federal income tax, Social Security (6.2%), and Medicare (1.45%) on their wages — nothing extra to the state. This means every dollar you earn is taxed only at the federal level, resulting in meaningfully higher take-home pay compared to most other states.

The no-income-tax status makes Tennessee particularly attractive for high-income earners and retirees. With federal taxes already significant, eliminating the state layer can save $2,000–$15,000+ per year depending on income level.

How much you save vs high-tax states

Kentucky
4.5% flat
Notable difference
Georgia
~5.49% flat
Higher
Alabama
Up to 5%
Higher
Virginia
5.75% flat
Higher

What taxes do Tennessee workers actually pay?

Tennessee W-2 employees only have three taxes withheld: federal income tax (10%–37% depending on bracket), Social Security at 6.2% on the first $184,500 of wages, and Medicare at 1.45% on all wages (plus 0.9% on wages above $200,000). There is no Tennessee state income tax withholding on paychecks and no Tennessee individual income tax return to file.

Tennessee freelancers and 1099 contractors pay federal income tax plus self-employment tax of 15.3% — covering both halves of Social Security and Medicare. Half of self-employment tax is deductible from federal adjusted gross income. Tennessee's lack of state income tax makes it one of the most financially advantageous states for self-employed workers.

Tennessee paycheck tips for 2026

  • No income tax on wages: Tennessee eliminated its last income tax (the Hall Tax on interest and dividends) in 2021. Tennessee workers pay zero state income tax on wages, salaries, or investment income.
  • High sales tax: Tennessee has one of the highest combined sales tax rates in the nation. The state rate is 7% with local additions bringing combined rates to 9–10% in many areas.
  • No state tax return: Tennessee residents do not file a state individual income tax return (since 2022).
  • Freelancers: Tennessee freelancers only need to make federal estimated tax payments. There is no Tennessee state estimated tax for individuals.

Frequently asked questions

No. Tennessee eliminated its last income tax — the Hall Tax on investment income — effective January 1, 2021. Tennessee workers now pay zero state income tax on wages, salaries, tips, or investment income. Tennessee is one of nine states with no individual income tax. Residents only pay federal income tax, Social Security, and Medicare.
For a single W-2 employee earning $75,000 in Tennessee in 2026: federal income tax is approximately $10,294, Social Security is $4,650, and Medicare is $1,088. Total deductions are roughly $16,032, leaving an annual take-home of approximately $58,968, or about $2,268 bi-weekly. There is no Tennessee state income tax.
Tennessee has no individual income tax at all. Social Security, pension income, 401(k) distributions, and IRA withdrawals are all completely exempt from Tennessee state taxation. This makes Tennessee highly attractive for retirees, particularly those moving from high-tax states like California, New York, or Illinois.
Tennessee relies heavily on sales taxes, which at 7% state rate (plus local additions) give Tennessee one of the highest combined sales tax rates in the nation. Tennessee also has property taxes, business taxes, and various fees. The high sales tax trade-off means residents with lower incomes may pay a higher effective total tax rate than the income-tax-free status would suggest.
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