Tennessee paycheck taxes at a glance
| State income tax | None on wages |
|---|---|
| Local income tax | None on wages |
| State payroll deductions | None |
| Reciprocity | None |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $55,000 salary in Nashville, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,115.38 | $55,000 |
| Federal income tax | − $170.00 | − $4,420 |
| Social Security and Medicare | − $161.83 | − $4,208 |
| Take-home pay | $1,783.56 | $46,373 |
Single, paid every two weeks (26 paychecks). With no state tax, federal income tax and FICA are the only deductions, so take-home pay is noticeably higher than for the same salary in a taxing state.
A $110,000 household in Memphis, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $4,230.77 | $110,000 |
| 401(k) at 6% | − $253.85 | − $6,600 |
| Federal income tax | − $140.31 | − $3,648 |
| Social Security and Medicare | − $323.65 | − $8,415 |
| Take-home pay | $3,512.96 | $91,337 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). The 6% 401(k) deferral and the federal child tax credit lower federal income tax. Nothing changes at the state level because Tennessee has no income tax to reduce.
What is taken out of a Tennessee paycheck
Only federal items: federal income tax based on your Form W-4, 6.2% Social Security up to the yearly wage base, and 1.45% Medicare (plus 0.9% on wages over $200,000). Tennessee has no state W-4 form because there is nothing to withhold. Any 401(k), HSA or health premium you choose comes out before federal income tax, as in every state. State unemployment insurance is paid by the employer only.
The Hall income tax is gone
Tennessee once taxed interest and dividends through the Hall income tax. Lawmakers cut the rate by one point a year from 2017 and fully repealed it for tax years beginning on or after January 1, 2021. Wages were never taxed. Today a Tennessee resident files no state income tax return at all, whatever their income comes from.
How Tennessee raises money instead
The state relies mainly on sales tax: a 7% state rate plus a local rate set by each county or city, which makes Tennessee’s combined sales tax among the highest in the country. Some licensed professionals, such as attorneys, securities agents and lobbyists, also pay a yearly professional privilege tax directly to the state; it is never deducted from wages. Compare with Kentucky or Georgia, which do tax wages.
Working across the state line
If you live in Tennessee but work in a neighbouring state that taxes wages, such as Kentucky, Georgia or Alabama, that state taxes the wages you earn there and your employer withholds its tax. Tennessee has no income tax to credit it against, so there is no refund at home. If you live in another state and work in Tennessee, your home state usually taxes all your pay.
Tennessee vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Tennessee | None on wages | $0 | $61,593 |
| Kentucky | Flat 3.5% | $2,507 | $59,085 |
| Virginia | 2% to 5.75% (4 brackets) | $3,498 | $58,094 |
| North Carolina | Flat 3.99% | $2,484 | $59,109 |
| Georgia | Flat 4.99% | $2,994 | $58,599 |
| Alabama | 2% to 5% (3 brackets) | $3,127 | $58,466 |
| Mississippi | 4% above $10,000 (single) | $2,268 | $59,325 |
| Arkansas | 2% to 3.7% (5 brackets, 0% up to $5,599 single) | $2,287 | $59,305 |
| Missouri | 2% to 4.7% (8 brackets, 0% up to $1,348 single) | $2,534 | $59,059 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.