Updated June 2026 · No State Income Tax · Federal + FICA Only · Hall Tax Repealed 2021
Tennessee Paycheck Calculator — Zero State Income Tax · Free 2026 TN Tool
Free Tennessee paycheck calculator 2026. No state income tax — instantly see your take-home after federal tax & FICA only.
TN state tax: $0 — None
No local tax
Min wage: $7.25/hr
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Tennessee Note: No state W-4 needed — Tennessee has zero income tax on wages. Only your federal W-4 applies to your paycheck.
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Your Tennessee Take-Home Pay (estimated)
$0.00
per paycheck
Gross Pay
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Total Taxes
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Effective Rate
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Full Tennessee Paycheck Breakdown
Item
Amount
Gross Pay
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— Federal Income Tax
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— Tennessee State Tax
$0.00 ✓
— Social Security (6.2%)
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— Medicare (1.45%)
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— Pre-tax Deductions
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— Post-tax Deductions
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Net Take-Home Pay
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Tennessee advantage: $0.00 in state income tax — one of only 9 states with no income tax on wages. Estimates only; actual withholding may vary. Consult a tax professional for complex situations.
Note: If your actual paycheck is lower than this estimate, check unaccounted overtime, deduction differences, or W-4 elections against our pay stub guide.
✓ Reviewed for AccuracyReviewed by Jordan Ellis — Senior Payroll & Tax Analyst · Last reviewed: June 2026
Tennessee has no state income tax on wages — only federal income tax and FICA (Social Security + Medicare) are withheld from your paycheck. Enter your details below for an instant, accurate estimate of your Tennessee take-home pay.
Section 2
Tennessee No State Income Tax — What It Means for Your Paycheck
Tennessee is one of only nine states in the U.S. with no state income tax on wages. As of January 1, 2021, Tennessee eliminated its last remaining income-related tax — the Hall Income Tax on interest and dividends. Today, Tennessee workers pay zero state income tax on their paychecks, making Tennessee one of the most take-home-pay-friendly states in the country.
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Tennessee State Income Tax Rate on Wages (2026)No state income tax · Hall Income Tax fully repealed Jan 1, 2021 · No local income taxes in any TN city · No state W-4 required · Federal taxes and FICA only
Hall Income Tax — Fully Gone Since 2021: Tennessee's Hall Income Tax previously taxed interest and dividend income only — never wages. It was phased down from 6% to 1% by 2020, then fully repealed effective January 1, 2021. Tennessee workers never paid state income tax on wages, even when the Hall Tax existed. The 2021 repeal completed Tennessee's transformation into a fully income-tax-free state for all income types.
No Tennessee State W-4: Because Tennessee has no income tax, there is no state withholding form to complete. Tennessee employees only fill out the federal W-4. Your employer withholds federal income tax based on your W-4 elections, but withholds zero Tennessee state income tax — because there is none to withhold.
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Tennessee vs. Border States — Tax Advantage
Tennessee workers have a clear paycheck advantage over workers in every neighboring state. Earning $65,000/year in Tennessee vs. Georgia (5.49%): save $3,569/year. Vs. North Carolina (4.75%): save $3,088/year. Vs. Virginia (5.75%): save $3,400/year. Vs. Alabama (up to 5%): save ~$2,800/year. This advantage compounds every year on the same salary — purely from the absence of state income tax.
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Tennessee Sales Tax — The Trade-Off
Tennessee funds its government primarily through sales taxes — among the highest nationally. The statewide rate is 7%, with most counties adding 2.25–2.75%, pushing the combined rate to 9.25%–9.75%. This is the trade-off for no income tax. High earners benefit more from no income tax; lower-income workers may pay proportionally more in sales tax. Your paycheck itself is completely unaffected by sales tax.
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Retirement Income in Tennessee
Tennessee does not tax any retirement income — Social Security, 401(k) distributions, IRA withdrawals, pensions, and military retirement pay are all completely exempt from Tennessee state income tax (because there is no state income tax at all). This makes Tennessee consistently ranked as one of the top 3 states for retirees from a state tax perspective. Combined with lower property taxes and moderate cost of living outside Nashville, the retirement advantage is substantial.
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The 9 No-Income-Tax States (2026)
States with no income tax on wages: Alaska, Florida, Nevada, New Hampshire (dividend tax being phased out), South Dakota, Tennessee, Texas, Washington (capital gains tax on high earners), and Wyoming. Tennessee stands out among these for its central U.S. location, growing economy in Nashville, and strong logistics and healthcare job markets — making it attractive for workers and businesses relocating from high-tax states.
Section 3
How Tennessee Paycheck Taxes Are Calculated
With no state income tax, Tennessee paycheck calculations are simpler than in most states. Only federal income tax and FICA apply — the two lines you'll see on your pay stub. Here is exactly how each Tennessee paycheck is computed from gross to net.
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Compute Gross Pay
Hourly: rate × hours worked in the period. Salary: annual ÷ pay periods. Tennessee follows federal FLSA overtime: 1.5× the regular rate for all hours over 40 per workweek. Tennessee's minimum wage is the federal floor of $7.25/hour — Tennessee has not enacted a higher state minimum, and state law prohibits cities from setting local minimums. Major employers like HCA Healthcare, FedEx, Volkswagen, and Amazon typically pay well above this floor.
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Subtract Pre-Tax Deductions
401(k), health insurance (Section 125), HSA, and FSA contributions reduce gross wages before federal income tax and FICA. Because Tennessee has no state income tax, these deductions only generate federal and FICA savings — but those savings are still significant. A Tennessee worker in the 22% federal bracket contributing $5,000 to a 401(k) saves approximately $1,100 in federal tax + $382 in FICA = $1,482 total per year.
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Federal Income Tax Withholding
Calculated using IRS Publication 15-T 2026 withholding tables based on your W-4 filing status. 2026 standard deductions: $15,000 (single), $30,000 (MFJ), $22,500 (HOH). Federal brackets: 10%–37%. Tennessee's major industries — healthcare (HCA, Vanderbilt), logistics (FedEx, Amazon), automotive (VW, GM Ultium), and tech (Oracle) — place many workers in the 22%–24% federal brackets.
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FICA — Social Security & Medicare
Social Security: 6.2% on wages up to $184,500 (2026 wage base). Medicare: 1.45% on all wages. Additional Medicare Tax: 0.9% on wages over $200,000. Total FICA for most Tennessee workers: 7.65%. Tennessee has no state-specific FICA modifications — identical to all other states.
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Tennessee State Tax — $0.00
This step is the simplest of any state. Tennessee withholds zero state income tax from wages. No state withholding tables, no state W-4, no state exemptions — your payroll software simply applies a 0% state rate. Tennessee workers keep 3%–9% more of their gross pay each paycheck compared to workers in income-tax states — a tangible, recurring advantage on every paycheck for the entire length of their career.
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Post-Tax Deductions → Net Pay
After all federal taxes and FICA, post-tax deductions (Roth 401k, garnishments, voluntary benefits) are subtracted to arrive at net take-home pay. Tennessee's Wage Regulation Act (TCA § 50-2-103) requires employers to pay wages at least semi-monthly and prohibits unauthorized deductions. Final wages on termination must be paid by the next regular scheduled payday.
Tennessee Paycheck Example — $60,000/yr, Single, Bi-weekly: Gross per paycheck: $2,307.69 | Federal income tax: ~$258 | Tennessee state tax: $0.00 | Social Security: ~$143 | Medicare: ~$33 | Net take-home: ~$1,874/paycheck (~$48,724/year). A comparable worker in Georgia (5.49% flat) would take home ~$1,741/paycheck — Tennessee's advantage: $133/paycheck or $3,458/year on the same salary.
Annual Salary
Gross / Paycheck
Federal Tax
FICA
TN State Tax
Net Take-Home
$35,000
$1,346.15
~$102
~$103
$0.00
~$1,141
$50,000
$1,923.08
~$193
~$147
$0.00
~$1,583
$65,000
$2,500.00
~$293
~$191
$0.00
~$2,016
$80,000
$3,076.92
~$418
~$235
$0.00
~$2,424
$100,000
$3,846.15
~$602
~$294
$0.00
~$2,950
$150,000
$5,769.23
~$1,117
~$383
$0.00
~$4,269
Estimates based on single filer, standard W-4, no pre-tax deductions, bi-weekly pay. Use the calculator above for your exact situation.
No Tennessee city or county can levy an income tax on wages — state law prohibits it. Whether you work in Nashville's booming tech and healthcare corridor, Memphis's global logistics hub, Knoxville's TVA and university economy, or Chattanooga's manufacturing base, your paycheck withholding is the same: federal income tax + FICA only.
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Nashville (Davidson County)
715,000+ residents · Tennessee's capital and economic hub
Nashville is Tennessee's economic powerhouse and one of the fastest-growing U.S. metros. Key employers: HCA Healthcare (largest private hospital operator in the U.S.), Vanderbilt University Medical Center, Amazon (major tech and fulfillment hub), Oracle (relocated HQ), Bridgestone Americas. Nashville median household income exceeds $70,000. No city income tax, no county income tax — Nashville workers keep every dollar of their state-level take-home advantage.
No local income taxHealthcare + tech hubMedian HH income: $70K+
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Memphis (Shelby County)
618,000+ residents · Global logistics capital
Memphis is a global logistics hub — home to FedEx World Headquarters, the world's busiest cargo airport, and massive Amazon operations. Other major employers: St. Jude Children's Research Hospital, International Paper, AutoZone. Memphis has the highest poverty rate of Tennessee's major cities but strong job density in logistics and healthcare. No city or county income tax — workers take home the full federal take-home advantage without any local deduction.
No local income taxFedEx + global logisticsSt. Jude — major employer
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Knoxville (Knox County)
195,000+ residents · East Tennessee's largest city
Knoxville's economy is anchored by the Tennessee Valley Authority (TVA) — one of the largest public utilities in the U.S. — and the University of Tennessee system. Nearby Oak Ridge National Laboratory employs thousands of researchers and engineers at premium wages. The healthcare sector (Covenant Health, UT Medical Center) is a second major pillar. Federal and TVA employment provides exceptionally stable, benefit-rich careers — all fully exempt from Tennessee income tax.
No local income taxTVA + federal researchUT system employer
Chattanooga has been transformed by automotive manufacturing. Volkswagen's U.S. assembly plant employs 3,500+ workers. GM's Ultium Cells EV battery plant adds significant manufacturing employment. Amazon, Cigna, and a growing startup scene (aided by EPB's gigabit fiber network) have diversified the economy. Auto workers at VW and GM typically earn $20–$35/hour — all fully exempt from Tennessee state income tax, making Chattanooga manufacturing jobs particularly lucrative in real take-home terms.
No local income taxVW + GM EV manufacturingGrowing tech scene
Other Tennessee Cities:Clarksville (Fort Campbell military + growing economy), Murfreesboro (MTSU, healthcare, Amazon warehousing — fastest growing TN city), Franklin / Williamson County (highest-income TN suburb, major corporate HQs including Mars, AMSURG), Jackson (healthcare hub for West TN), Johnson City / Tri-Cities (ETSU, Ballad Health). All follow the same rule: zero local income taxes, zero state income taxes.
Section 5 — Maximizing Take-Home Pay
Pre-Tax Deductions That Boost Tennessee Take-Home Pay
Since Tennessee has no state income tax, pre-tax deductions only save federal income tax and FICA — as covered in our full deduction walkthrough — but these federal savings are still significant, especially for workers in higher brackets.
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401(k) — Federal Tax Savings for Tennessee Workers
Tennessee workers in the 22% federal bracket save $220 per $1,000 contributed to a traditional 401(k), plus approximately $76.50 in FICA savings = $296.50 per $1,000 contributed. Maxing the 2026 401(k) limit of $23,500 saves approximately $6,974 in total taxes annually. Major Tennessee employers with strong 401(k) match programs include HCA Healthcare, FedEx (up to 3.5% match), Oracle, Volkswagen, and Bridgestone Americas. Always contribute at least enough to capture the full employer match — it's a 50%–100% immediate return on your dollar.
Unlike states with income taxes, Tennessee workers don't receive a state-level deduction benefit from 401(k) contributions (e.g., $49.50 per $1,000 in Illinois, $57.50 in Georgia). However, the federal and FICA savings alone are powerful — and the absence of state income tax means your starting take-home is already higher than in most states.
2026 limit: $23,50022% bracket: $296.50 saved per $1,00050+ catch-up: +$7,500
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Health Insurance & HSA — Double Federal + FICA Savings
Health insurance premiums paid through an employer Section 125 cafeteria plan reduce gross wages before federal income tax AND FICA. For a Tennessee worker paying $400/month ($4,800/year) in health premiums: federal savings (22% bracket): $1,056 | FICA savings: $367 = $1,423 in annual tax savings on that single election alone.
Health Savings Accounts (HSA) paired with a High Deductible Health Plan (HDHP) are especially powerful. 2026 HSA limits: $4,300 (individual) / $8,550 (family). Tennessee's healthcare sector — HCA, Vanderbilt, Ballad, Covenant — provides many workers access to comprehensive employer health plans with HSA options.
Section 125 plan requiredHSA 2026: $8,550 family limitTriple tax advantage
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Federal Tax Benefits Tennessee Workers Should Claim at Filing
While Tennessee has no state income tax, Tennessee workers still benefit from all federal tax credits: the Earned Income Tax Credit (EITC) — particularly valuable for lower-income Tennessee workers given the federal $7.25 minimum wage baseline — the Child Tax Credit ($2,000/child), Child & Dependent Care Credit, and American Opportunity Credit for education. Tennessee also has relatively low property taxes (avg effective rate ~0.56% — among the lowest nationally) and a state property tax relief program for elderly and disabled low-income homeowners.
Federal EITC — valuable for TN workersChild Tax Credit: $2,000/childLow property tax rate
Section 6 — Tennessee Worker Rights
Tennessee Worker Rights & Payroll Laws 2026
Tennessee relies primarily on federal wage law (FLSA) alongside the Tennessee Wage Regulation Act. Here is what every Tennessee worker should know about their paycheck.
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Tennessee Pay Frequency Requirements
Under the Tennessee Wage Regulation Act (TCA § 50-2-103), employers must pay employees at least semi-monthly (twice per month). The employer must designate regular paydays and pay wages within the designated period. Final wages at termination must be paid by the next regular payday — there is no requirement for immediate payment at termination (unlike some states, see our final paycheck rules guide for the full comparison). If your employer delays your final paycheck past the next regular payday, this is a TCA § 50-2-103 violation.
Tennessee follows the federal FLSA overtime standard: 1.5× the regular rate for all hours over 40 in a workweek. Tennessee does not have a more generous state overtime law. Industries with frequent overtime rules to check in Tennessee: healthcare (Nashville hospital systems), logistics and warehousing (Memphis FedEx and Amazon contractor networks), construction (Nashville's development boom), and restaurant/hospitality (Nashville's tourism and entertainment economy).
1.5× after 40 hrs/week
📋 Tennessee Paycheck Accuracy Checklist
Does Your Tennessee Paycheck Add Up?
Tennessee relies primarily on federal wage law, so it helps to know the federal rules that govern a Tennessee paycheck. Here are the most common items to check:
✓Overtime paid at 1.5× — common in Nashville hospitality, Memphis logistics, healthcare, and construction
✓Minimum wage at least the federal $7.25/hr floor
✓Tip credit: tipped workers must receive at least $7.25/hr total; employers cannot take the tip credit if workers perform non-tipped duties more than 20% of the time
✓Deductions for register shortages, uniform costs, or breakage generally require prior written authorization
If your paycheck doesn't match these rules, compare it against our pay stub guide first. For unresolved pay disputes, file with the Tennessee Department of Labor and Workforce Development (tn.gov/workforce) for state wage claims, or the U.S. DOL Wage and Hour Division for federal FLSA matters.
Section 7 — State Comparisons
Tennessee vs. Neighboring States — Take-Home Pay Comparison
How does Tennessee's no-income-tax advantage translate into real dollars compared to neighboring states? Comparison for a worker earning $65,000/year, single filer, standard deductions, bi-weekly pay.
State
Income Tax Structure
State Tax on $65K
Annual Take-Home vs. TN
Local Tax?
Tennessee
None (0%)
$0
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No
Georgia
Flat 5.49%
~$3,569
-$3,569/yr vs. TN
No
North Carolina
Flat 4.75%
~$3,088
-$3,088/yr vs. TN
No
Alabama
Progressive 2%–5%
~$2,800
-$2,800/yr vs. TN
Yes (some cities)
Mississippi
Flat 4.7% (2026)
~$3,055
-$3,055/yr vs. TN
No
Arkansas
Up to 3.7% top rate
~$2,050
-$2,050/yr vs. TN
No
Virginia
Progressive up to 5.75%
~$3,400
-$3,400/yr vs. TN
No
Kentucky
Flat 4% + local
~$2,600+
-$2,600+/yr vs. TN
Yes (many cities)
Tennessee's Advantage Is Real Money: A Tennessee worker earning $65,000/year saves between $2,600–$3,600 per year in state income taxes compared to every neighboring state. Over a 10-year career, that is $26,000–$36,000 in additional take-home pay on the same salary — without any change in gross compensation. This is why Tennessee has attracted significant corporate relocation (Oracle, Amazon) and population growth from higher-tax states.
Tennessee shares its zero-income-tax structure with three other major states: Florida, Nevada, and Texas — each reaches zero income tax differently, through sales tax (Tennessee), tourism/gaming revenue (Florida, Nevada), or property tax (Texas). Workers coming from a state with falling rates, like Arkansas, which has cut its top rate from 5.9% to 3.7% since 2022, will find Tennessee's zero rate an even bigger jump than the table above shows for states holding steady.
Section 8 — Common Questions
Paycheck Calculator for Tennessee — Frequently Asked Questions
Top questions about Tennessee take-home pay, no state income tax, minimum wage, Nashville paycheck calculations, and Tennessee worker rights. Updated for 2026. If you're relocating to a flat-tax state instead of another no-tax state, see how the math changes on the Illinois paycheck calculator, or check your own numbers for any state with our free estimator.
No. Tennessee has no state income tax on wages or salaries. Tennessee's Hall Income Tax — which previously taxed only interest and dividend income (never wages) — was fully repealed as of January 1, 2021. As of 2026, Tennessee workers pay zero state income tax on their paychecks. Deductions are limited to federal income tax, Social Security (6.2%), and Medicare (1.45%) — plus any voluntary pre-tax or post-tax deductions you elect.
Tennessee paycheck deductions include: (1) Federal income tax — based on your W-4 and 2026 IRS brackets (10%–37%); (2) Social Security — 6.2% on wages up to $184,500; (3) Medicare — 1.45% on all wages (plus 0.9% Additional Medicare Tax on wages over $200,000); (4) any pre-tax deductions you elected (401k, health insurance, HSA, FSA). Tennessee state income tax withheld: $0.00.
Tennessee has no state minimum wage law — it defaults to the federal minimum of $7.25/hour, unchanged since 2009. Tennessee is one of only a handful of states that has not raised its minimum wage above the federal floor. Tennessee state law also prohibits cities and counties from setting higher local minimum wages — no local minimums exist anywhere in Tennessee. For tipped workers, the federal tipped minimum of $2.13/hour applies, provided tips bring total compensation to at least $7.25/hour; if they don't, the employer must make up the difference.
Single Tennessee worker earning $60,000/year paid bi-weekly: Gross per paycheck: $2,307.69 | Federal income tax: ~$258 | Tennessee state tax: $0.00 | Social Security: ~$143 | Medicare: ~$33 | Net take-home: approximately $1,874 per bi-weekly paycheck (~$48,724/year). A comparable worker in Georgia (5.49% flat) would take home ~$1,741/paycheck — Tennessee's advantage is $133/paycheck or $3,458/year on the same salary.
No. Tennessee state law prohibits local income taxes statewide. Nashville, Memphis, Knoxville, Chattanooga, Clarksville — no Tennessee city or county can levy an income tax on wages. Whether you work in downtown Nashville, suburban Williamson County, or rural East Tennessee, your paycheck withholding is identical: federal income tax and FICA only. This is a meaningful advantage over states like Kentucky and Alabama where city income taxes can add 1%–2% to your withholding.
No. Tennessee does not tax Social Security benefits, pension income, 401(k) distributions, IRA withdrawals, or any other form of retirement income. Since Tennessee has no income tax on any income at all (wages, investment income post-2021, retirement income), retirees in Tennessee owe zero state income tax. Tennessee is consistently ranked as one of the top 3 states for retirees from a state tax perspective — combining no income tax with relatively low property taxes and a moderate cost of living outside Nashville.
The Hall Income Tax was Tennessee's only state income tax — and it applied only to interest and dividend income, never to wages, salaries, or tips. Tennessee workers never paid state income tax on paychecks, even when the Hall Tax existed. The tax was phased down from 6% to 1% by 2020 and was fully repealed effective January 1, 2021. As of 2026, Tennessee has no state income tax of any kind. Tennessee is one of nine U.S. states with no state income tax — and one of very few that also prohibits local income taxes statewide.
Yes — Tennessee is one of the best states in the U.S. for paycheck take-home pay. With no state income tax, a worker earning $70,000/year takes home approximately $54,000 after federal taxes and FICA. The same worker in California (~9.3% state rate at this income) would take home roughly $47,500 — over $6,500 less per year. Compared to Illinois (4.95% flat): ~$3,500 more per year in Tennessee. Compared to Georgia (5.49%): ~$3,900 more per year. These are real, recurring annual advantages on the same gross salary.
Tennessee law permits employers to deduct from wages only for: (1) legally required deductions (taxes, garnishments); (2) deductions you specifically authorized in writing (health insurance, retirement, union dues); (3) deductions for loans or advances you agreed to repay. Employers cannot deduct for cash register shortages, breakage, uniform costs, or business losses without prior written employee authorization — and deductions cannot bring wages below the federal $7.25/hour minimum. File unauthorized deduction complaints with the Tennessee Department of Labor and Workforce Development.
The savings are immediate and recurring. Moving to Tennessee from California ($65K income, ~9.3% CA rate): save approximately $6,045/year. From New York (~6.33% NY + NYC tax up to 3.88%): save approximately $6,640/year. From Illinois (4.95% flat): save approximately $3,218/year. From Georgia (5.49%): save approximately $3,569/year. From North Carolina (4.75%): save approximately $3,088/year. These are recurring annual savings on the same salary — and they compound significantly over a career. Factor in Tennessee's lower cost of living (particularly outside Nashville) and the real purchasing power difference is even larger.
Tennessee's $0 State Income Tax Is the Starting Point — Know All Your Rights
Tennessee workers enjoy some of the highest take-home pay in the region since there's no state income tax on wages. Federal overtime laws, minimum wage rules, and wage payment requirements still apply fully — check your pay stub against our guide if something doesn't look right.
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