Tennessee Take-Home Pay Calculator
Tennessee has no state income tax, so your paycheck only loses federal income tax and FICA — this calculator shows exactly what that leaves you.
Why the Tennessee paycheck math is simpler
(no state tax line — Tennessee doesn't have one)
Tennessee has taxed neither wages nor ordinary income for decades. Its one historical income-related tax, the Hall Income Tax on interest and dividends, was phased down over several years and fully repealed effective January 1, 2021. A Tennessee paycheck today skips the state-tax line entirely — same as Texas, Florida, and Washington.
Taxable after $4,000 pre-tax and $15,000 federal standard deduction: $61,000. Federal tax ≈ $8,334 · Social Security $4,960 · Medicare $1,160.
Annual take-home ≈ $61,546 → about $2,367 per biweekly paycheck (76.9% of gross) — no state tax line to subtract.
How Tennessee funds itself instead — and why it's not all bad news
Tennessee leans harder on sales tax than almost any other state: a 7% state rate combines with local rates to average around 9.55% combined — consistently among the highest in the nation. But the trade-off runs the other way for homeowners: Tennessee has some of the lowest property tax rates in the country. For a typical homeowner, this can make Tennessee's overall tax burden more favorable than other no-income-tax states like Texas, where higher property taxes offset the lack of income tax more than in Tennessee.
Common mistakes when estimating a Tennessee paycheck
- Assuming a generic state default rate applies. Some multi-state payroll tools apply an average rate unless told otherwise — confirm Tennessee shows $0 state tax.
- Confusing Tennessee with states that still tax investment income. The old Hall Income Tax on interest and dividends is gone — fully repealed since 2021.
- Ignoring the high sales tax when comparing overall affordability. A strong paycheck can be offset by Tennessee's above-average sales tax on everyday purchases — factor this in separately from take-home pay.
Frequently asked questions
Does Tennessee have a state income tax?
No — Tennessee taxes neither wages nor investment income; its old Hall Income Tax on interest and dividends was fully repealed in 2021.
How does Tennessee fund government without an income tax?
Mainly through sales tax — a 7% state rate that combines with local rates to average around 9.55%, among the highest in the country.
Are Tennessee property taxes high?
No — Tennessee has some of the lowest property tax rates in the country, which offsets its heavier sales tax reliance for homeowners.
Does Tennessee have local city income tax?
No — no Tennessee city or county levies an income tax on wages.
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Note: Simplified estimate using 2025 federal figures and the standard deduction; excludes credits and benefit specifics. Not tax advice. Figures: 2025 federal tax year; Tennessee has no state income tax. Last reviewed: September 2026.