Calculate your take-home pay in the Volunteer State. Tennessee has no state income tax on wages.
Tennessee is one of nine states with no individual income tax on earned income. The Hall Income Tax on interest and dividends was fully repealed on January 1, 2021. No cities in Tennessee levy local income taxes either, making Tennessee one of the most tax-friendly states for workers.
| Item | Per Paycheck | Monthly | Annual |
|---|---|---|---|
| Gross Pay | - | - | - |
| Federal Income Tax | - | - | - |
| Tennessee State Tax | $0 | $0 | $0 |
| Social Security | - | - | - |
| Medicare | - | - | - |
| 401(k) + Pre-Tax | - | - | - |
| Take-Home Pay | - | - | - |
Tennessee is one of the most tax-friendly states in the nation for workers. With no state income tax on wages, salaries, or earned income, your paycheck is only reduced by federal taxes and FICA contributions. This means Tennessee workers take home significantly more than workers in high-tax states like California, New York, or New Jersey.
Tennessee levies no state income tax on earned income. This prohibition is constitutionally protected under Article II, Section 28 of the Tennessee Constitution, as amended by voter referendum in 2014. The state previously collected the Hall Income Tax on interest and dividends at rates up to 6%, but this was phased out and fully repealed on January 1, 2021. No Tennessee city or county levies a local income tax or payroll tax on residents.
While Tennessee does not collect state income tax, federal income tax is still withheld from every paycheck. The 2025 federal brackets for single filers are: 10% on income up to $11,600, 12% on $11,601-$47,150, 22% on $47,151-$100,525, 24% on $100,526-$191,950, 32% on $191,951-$243,725, 35% on $243,726-$609,350, and 37% on income over $609,350. These apply to taxable income after the standard deduction ($15,000 single, $30,000 married in 2025).
All Tennessee workers pay Social Security tax at 6.2% on wages up to $176,100 (2025 wage base) and Medicare tax at 1.45% on all wages. High earners pay an additional 0.9% Medicare surtax on wages exceeding $200,000 for single filers or $250,000 for married filing jointly.
On a $75,000 salary, a single filer in Tennessee takes home roughly $58,000 annually after federal taxes and FICA. The same worker in California would take home about $53,500 (after ~$3,200 in CA state tax), and in New York would net about $54,000 (after ~$3,600 in NY state tax plus potential NYC local tax). Tennessee's zero state tax advantage adds up to $3,000-5,000 per year compared to high-tax states.
While Tennessee has no income tax, the state has one of the highest sales tax rates in the country. The state sales tax rate is 7%, and local rates can push the combined rate to 9.75% in many areas. Tennessee also has a $100 franchise and excise tax on businesses. Property taxes in Tennessee are relatively moderate, with effective rates around 0.56% of assessed value, below the national average.