Tennessee eliminated its Hall Income Tax effective January 1, 2021, making it a true no-income-tax state for wage earners. Before 2021, Tennessee taxed investment income (dividends and interest) at 6% through the Hall Tax, but wages were never subject to state tax. Today, a Tennessee wage earner's paycheck has only federal income tax and FICA deducted. At $60,000, that means keeping $50,200, identical to Texas and Florida on the same gross salary.
Tennessee employers withhold only federal income tax and FICA. Social Security is withheld at 6.2% on wages up to $176,100. Medicare is withheld at 1.45% on all wages, with an extra 0.9% on wages above $200,000. Tennessee has no state SDI, no state unemployment tax on employees, and no statewide payroll tax on employees. The lack of state withholding means the federal income tax calculator and the federal W-4 are the only forms that affect a Tennessee worker's paycheck.
At $60,000, a single Tennessee filer keeps $50,200 after federal taxes and FICA, or $4,183 per month. With no state tax line, the take-home is the same as Texas, Florida, or any other no-income-tax state at this income level. Use the time and a half calculator to estimate gross for overtime hours, then enter it above.
| Annual Salary | Federal Tax | No State Tax | Social Security | Medicare | Annual Take-Home | Monthly Take-Home |
|---|---|---|---|---|---|---|
| $50,000 | $4,010 | $0 | $3,100 | $725 | $42,165 | $3,514 |
| $60,000 | $5,210 | $0 | $3,720 | $870 | $50,200 | $4,183 |
| $75,000 | $8,202 | $0 | $4,650 | $1,088 | $61,060 | $5,088 |
| $100,000 | $13,703 | $0 | $6,200 | $1,450 | $78,647 | $6,554 |
| $125,000 | $19,344 | $0 | $7,750 | $1,813 | $96,093 | $8,008 |
Single filers, no pre-tax deductions. Federal tax based on 2025 brackets and $14,600 standard deduction. Tennessee has no state income tax on wages.
Georgia has a flat 5.39% state income tax (as of 2024, reduced from 5.75%), while Tennessee workers pay no state tax. At $60,000, a Georgia worker pays approximately $2,459 in Georgia state income tax; a Tennessee worker pays $0. Use the Georgia Paycheck Calculator to compare your specific numbers.
| Salary | TN State Tax | GA State Tax (5.39%) | TN Annual Advantage |
|---|---|---|---|
| $50,000 | $0 | $2,446 | +$2,446 |
| $60,000 | $0 | $2,459 | +$2,459 |
| $75,000 | $0 | $4,043 | +$4,043 |
| $100,000 | $0 | $5,390 | +$5,390 |
GA figures use 5.39% on AGI after standard deduction. TN savings are approximate. Actual GA tax uses standard deduction.
Tennessee had taxed investment income through the Hall Income Tax since 1929. The Hall Tax applied to dividends and interest income at 6% (reduced to 1% by 2020). Governor Bill Lee signed the repeal in 2017, with the tax phasing out 1 percentage point per year until it reached 0% in 2021. Before the repeal, retirees living on dividend income paid up to 6% Tennessee tax. After the repeal, Tennessee became one of nine states with no income tax of any kind on any income type, joining Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, and New Hampshire.
Tennessee does have a 7% statewide sales tax (one of the highest in the US), and local jurisdictions can add up to 2.75% more. Workers who save aggressively should direct the money they save on state income taxes into tax-advantaged accounts.
Tennessee has no state income tax but does have a 7% statewide sales tax (one of the highest in the US), and local jurisdictions can add up to 2.75% more. Workers who save aggressively should direct the money they save on state income taxes into tax-advantaged accounts rather than spending it on high-sales-tax purchases.