Tennessee has no state income tax on wages. The Hall Income Tax was fully repealed effective January 1, 2021. Your paycheck is subject only to federal income tax and FICA - no Tennessee state tax applies.
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How the Tennessee Paycheck Calculator Works
This calculator estimates your net take-home pay for Tennessee residents in the 2025–26 tax year. Because Tennessee does not tax wages, only federal income tax and FICA deductions apply. The calculator accounts for federal progressive brackets, Social Security, Medicare, and any pre-tax deductions you enter.
Tennessee State Income Tax (2025–26)
Tennessee imposes no state income tax on wages or salaries. The Hall Income Tax, which taxed investment income such as dividends and interest at 1%, was phased down over several years and fully eliminated on January 1, 2021. Tennessee is one of nine states with no broad-based income tax.
Tennessee Net Pay = Gross Pay
− Federal Income Tax (progressive brackets)
− Social Security (6.2%, up to $176,100)
− Medicare (1.45% + 0.9% above $200K)
− Pre-tax deductions (401k, health insurance)
TN State Income Tax: $0
2025 Federal Income Tax Brackets (Single)
10% on the first $11,925 of taxable income
12% on income from $11,926 to $48,475
22% on income from $48,476 to $103,350
24% on income from $103,351 to $197,300
32% on income from $197,301 to $250,525
Example Calculation
Suppose you earn $65,000 per year in Tennessee, file as single, and have no pre-tax deductions.
Gross annual pay$65,000
Federal taxable income ($65,000 − $14,600 standard deduction)$50,400
Federal income tax (10% + 12% brackets)−$5,908
Tennessee state income tax$0
Social Security ($65,000 × 6.2%)−$4,030
Medicare ($65,000 × 1.45%)−$943
Estimated net annual take-home$54,119
Monthly take-home~$4,510
Tennessee vs. a State With Income Tax
For the same $65,000 salary, someone in North Carolina (4.25% flat) takes home roughly $51,813 annually. In Illinois (4.95% flat), it is about $50,901. Tennessee's no-tax policy saves this worker $2,300–$3,200 per year compared to those states - money that stays in your pocket.
Disclaimer: This calculator provides estimates for informational purposes. Your actual paycheck may differ based on employer-specific withholding or benefits. Consult your HR department or a tax professional for exact figures.
Common Mistakes to Avoid
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Forgetting federal taxes still apply
No state income tax does not mean no taxes at all. Federal income tax and FICA apply fully to Tennessee wages. A $65,000 salary still loses nearly $11,000 to federal obligations.
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Ignoring Tennessee's high sales tax
Tennessee's combined state and local sales tax can reach 9.75% - one of the highest in the country. When budgeting your take-home pay, factor in that everyday purchases cost more than in lower-sales-tax states.
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Overlooking property taxes in the total picture
Tennessee has relatively high property taxes in cities like Nashville. If you are buying a home, property tax costs can offset some of the state income tax savings depending on home value and county.
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Using the wrong filing status
Married filing jointly nearly doubles the federal standard deduction and widens brackets. Using the single status for a married couple produces an overstated federal tax estimate.
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Not updating calculations at year start
Federal brackets and the Social Security wage base adjust annually. Always use the current year's figures when planning your budget or comparing job offers.
Frequently Asked Questions
No. Tennessee does not tax wages or salaries. The Hall Income Tax, which applied to investment income such as dividends and interest, was fully repealed effective January 1, 2021. Tennessee residents pay only federal income tax and FICA on their wages - no state income tax applies at all.
IRS Revenue Procedure 2024-61 and Publication 15-T (2025)
Source for 2025 federal income tax brackets, standard deduction amounts, and withholding tables.
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Tennessee Department of Revenue - Hall Income Tax Repeal
Confirms the Hall Income Tax was fully repealed effective January 1, 2021. Tennessee imposes no state income tax on wages or salaries.
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Social Security Administration - 2025 COLA and Wage Base
Source for the $176,100 Social Security wage base and 6.2% employee FICA rate for 2025.
HR
Hassaan Rasheed
Developer and Researcher, CalculatorFlux
Researches and verifies the formulas, methodology, and source data behind each calculator on CalculatorFlux. All tools are built and checked against the cited references before publication.
Tennessee has no state income tax, but it does have some of the highest sales taxes in the country - up to 9.75% combined. When budgeting your take-home pay, plan for higher costs on everyday purchases compared to lower-sales-tax states.