Tennessee paycheck calculator
Tennessee does not tax wages. The Department of Revenue says the state has no income tax on earned income, so employers have no state withholding to take out of your paycheck. Tennessee's only individual income tax, the Hall tax on interest and dividends, was repealed for tax years starting in 2021.
Take-home per paycheck
$2,369
- Take-home per year
- $61,593
- Total taxes per year
- $13,408
- Effective tax rate
- 17.9%
- Marginal tax rate
- 29.6%
Take-home per paycheck: $2,369 every 2 weeks
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $2,885 | $75,000 |
| Federal income tax | −$295 | −$7,670 |
| Social Security | −$179 | −$4,650 |
| Medicare | −$42 | −$1,088 |
| Take-home pay | $2,369 | $61,593 |
- Take-home pay$61,59382%
- Federal income tax$7,67010%
- Social Security & Medicare$5,7388%
Tennessee has no wage income tax
- None
- Tennessee does not tax wages; its former Hall tax on interest and dividends was repealed starting with 2021.
- None
- Tennessee has no state payroll tax withheld from employees.
- None
- Tennessee cities and counties do not tax wages, so there is no local income tax. Unemployment insurance is paid entirely by employers; the Department of Labor and Workforce Development tells employees that nothing is deducted from their pay for it.
- None
- No Tennessee income tax is withheld from bonuses, commissions or other supplemental pay.
$47,380 in Tennessee
$47,380 is the median annual wage in Tennessee (May 2025, BLS OEWS). A single filer paid every two weeks with no other income or deductions takes home $40,250 a year, or $1,548 per paycheck.
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $1,822 | $47,380 |
| Federal income tax | -$135 | -$3,506 |
| Social Security | -$113 | -$2,938 |
| Medicare | -$26 | -$687 |
| Take-home pay | $1,548 | $40,250 |
No Tennessee withholding on wages
Most states make employers withhold state income tax from pay. Tennessee is different: the Department of Revenue's guidance GEN-34 says Tennessee has no state income tax on earned income and therefore no withholding requirements.
Employers in Tennessee use only the federal Form W-4. If you live in Tennessee but work in a state that taxes wages, such as a job across the line in Kentucky, Georgia or another neighbor, that state's rules apply to the wages earned there.
The Hall income tax is gone
The Hall tax never applied to salaries. Enacted in 1929, it was imposed only on interest from bonds and notes and dividends from stock, and it was repealed for tax periods beginning on or after January 1, 2021. The Department of Revenue asks people not to file a Hall tax return for any year starting on or after that date.
No local income tax or employee payroll taxes
Nashville, Memphis, Knoxville, Chattanooga and other Tennessee cities and counties do not tax wages.
There is no state disability or paid family leave deduction either. Unemployment insurance is paid entirely by employers; the Department of Labor and Workforce Development tells employees that nothing is deducted from their pay to cover it.
What Tennessee taxes instead
Tennessee leans heavily on sales and use tax, with a state rate plus a local option rate set by cities and counties. Businesses pay the franchise and excise tax and the business tax, and property tax is assessed locally.
What changed recently
- 2026: Public Chapter 526 (2025) repealed the extra sales tax on hemp-derived cannabinoid products sold at retail from January 1, 2026 and replaced it with a wholesale tax. Nothing changed for wages, which Tennessee still does not tax. Source
Questions people ask
Does Tennessee have a state income tax?
Not on wages. Tennessee has no income tax on earned income, and the Hall tax on interest and dividends was repealed for tax years beginning on or after January 1, 2021. So Tennessee has no individual income tax at all.
Is state tax taken out of my paycheck in Tennessee?
No. Because Tennessee does not tax earned income, employers have no Tennessee withholding requirement. Only federal income tax, Social Security and Medicare are withheld.
Do Nashville or Memphis have a city income tax?
No. No Tennessee city or county levies an income tax on wages.
Do I still have to file a Hall income tax return?
No, not for any tax year beginning on or after January 1, 2021. The Department of Revenue asks taxpayers not to file a Hall return for those years.
Do Tennessee employees pay unemployment insurance tax?
No. Tennessee employers pay the full cost of unemployment insurance, and nothing is deducted from workers' pay for it.
Are bonuses taxed by Tennessee?
No. With no tax on earned income, Tennessee withholds nothing from bonuses or commissions. Federal withholding, Social Security and Medicare still apply.
Sources
- GEN-34 – Income Tax Withholding · retrieved 2026-10-16
- Hall Income Tax · retrieved 2026-10-16
- 2025 Legislative Summaries · retrieved 2026-10-16
- Unemployment Insurance Poster for Employees · retrieved 2026-10-16
- Publication 15-T (2026), Federal Income Tax Withholding Methods · retrieved 2026-10-16
- Publication 15 (2026), (Circular E), Employer's Tax Guide · retrieved 2026-10-16
- Rev. Proc. 2025-32: 2026 inflation-adjusted tax items · retrieved 2026-10-16
- Form W-4 (2026), Employee's Withholding Certificate · retrieved 2026-10-16
- Publication 505 (2026), Tax Withholding and Estimated Tax · retrieved 2026-10-16
- Form 1040-ES (2026), Estimated Tax for Individuals · retrieved 2026-10-16
- Schedule 1-A (Form 1040) 2026, Additional Deductions (early-release draft) · retrieved 2026-10-16
- Schedule 8812 (Form 1040) 2026, Credits for Qualifying Children and Other Dependents (early-release draft) · retrieved 2026-10-16
- Working Families Tax Cuts: Individuals and workers (tips, overtime, seniors, car loan interest) · retrieved 2026-10-16
- Working Families Tax Cuts provisions (charitable deduction for non-itemizers, Section 70424) · retrieved 2026-10-16
- Child Tax Credit · retrieved 2026-10-16
- IR-2025-111: 401(k) limit increases to $24,500 for 2026 · retrieved 2026-10-16
- Rev. Proc. 2025-19: 2026 HSA limits · retrieved 2026-10-16
- BLS Occupational Employment and Wage Statistics (OEWS), May 2025, median annual wage by state · retrieved 2026-10-16