How Tennessee Taxes Your Paycheck
Tennessee has no state income tax on wages. Your paycheck deductions in Tennessee are limited to federal income tax, Social Security (6.2% up to the wage base), Medicare (1.45%), and any pre-tax benefits you elect through your employer (401(k), health insurance, FSA/HSA).
Tennessee fully repealed its Hall income tax (which had taxed dividends and interest) in 2021 — making it now a true no-income-tax state.
Healthcare (HCA, Vanderbilt), country music and tourism (Nashville), logistics (FedEx HQ in Memphis), and auto manufacturing.
Top Cities in Tennessee
The largest population centers in Tennessee:
- Nashville — 687,000 residents
- Memphis — 622,000 residents
- Knoxville — 192,000 residents
- Chattanooga — 181,000 residents
How Tennessee Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Tennessee |
|---|---|---|
| Tennessee (here) | $61,593 | — |
| Kentucky | $59,082 | -$2,511 |
| Virginia | $58,080 | -$3,513 |
| North Carolina | $59,109 | -$2,484 |
| Georgia | $58,323 | -$3,270 |
| Alabama | $58,108 | -$3,485 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What's the Tennessee state income tax rate?
Tennessee has no state income tax on wages. Your only mandatory paycheck deductions are federal income tax (10–37% depending on income), Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, plus 0.9% on wages over $200K).
How much is taken out of my paycheck in Tennessee?
For a single filer earning $75,000 in Tennessee (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA — leaving about $61,593 take-home (17.9% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Is the Tennessee median household income enough to live comfortably?
The 2023 ACS reported a Tennessee median household income of about $72,000. Whether that's "comfortable" depends heavily on city — Nashville cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Tennessee paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Tennessee state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.