Tennessee Paycheck Calculator 2026 - No State Income Tax

Calculate Your Tennessee Take-Home Pay - No State Income Tax

One of the biggest advantages of working in Tennessee is that there's no state income tax. This means your Tennessee take-home pay is higher than in most other states because you only pay federal taxes and FICA (Social Security and Medicare). Tennessee is one of only 9 states with no income tax, along with Texas, Florida, Nevada, Washington, Wyoming, South Dakota, New Hampshire, and Alaska.

For example, a healthcare worker earning $68,000 in Nashville takes home approximately $52,000-$54,000 after federal taxes and FICA. The same salary in North Carolina would result in about $49,000-$51,000 take-home pay due to North Carolina's 4.75% flat state income tax. That's a $3,000-$5,000 annual difference just from state taxes alone.

Our Tennessee paycheck calculator helps you determine your exact Tennessee take-home pay. Because we maintain federal, FICA, and Tennessee withholding tables for every filing status, the calculator instantly shows both per-paycheck and annual net pay. Toggle between salary and hourly pay, include pre-tax deductions such as 401(k), HSA, or health insurance, and watch the tool recompute your Tennessee take-home pay immediately.

How to Use the Tennessee Paycheck Calculator

Using our Tennessee paycheck calculator is straightforward. Follow these steps to calculate your Tennessee take-home pay:

1. Enter your income: Select salary or hourly pay and enter your gross income. For example, if you earn $72,000 per year or $36 per hour in Tennessee, enter that amount.
2. Select Tennessee: Choose Tennessee as your state (using ?state=TN in the URL fills it in automatically). This ensures no state income tax is applied.
3. Add your details: Pick your pay frequency (weekly, bi-weekly, semi-monthly, or monthly) and filing status (single, married filing jointly, etc.), then add any 401(k), HSA, or health insurance deductions.
4. Get your results: Click "Calculate My Paycheck" and review the detailed breakdown showing your Tennessee take-home pay, including federal income tax, FICA taxes, and your final net pay (no state tax!).

The Tennessee paycheck calculator is especially useful for comparing job offers, planning your budget in Nashville, Memphis, Knoxville, or Chattanooga, or understanding how pre-tax deductions affect your Tennessee take-home pay. With no state income tax, you maximize your take-home pay compared to states with income taxes.

Why Tennessee Has No State Income Tax

Tennessee eliminated its state income tax on wages and salaries in 2020, though it previously had a tax on investment income. The state generates revenue primarily through sales taxes (one of the highest in the nation at 7% base rate plus local taxes), business taxes, and property taxes. This tax structure makes Tennessee extremely attractive for workers who want to maximize their take-home pay.

Tennessee's lack of state income tax, combined with its growing economy and relatively affordable cost of living, has made it an attractive destination for workers and businesses. Cities like Nashville have experienced rapid growth, particularly in the healthcare, music, and tech industries, partially due to the favorable tax environment.

This tax structure makes Tennessee particularly attractive for high earners, retirees, and businesses. The lack of state income tax helps offset Tennessee's relatively high sales tax, providing overall tax benefits for most workers.

Tennessee Local Taxes and Your Take-Home Pay

When calculating your Tennessee take-home pay, it's important to note that Tennessee does not allow local income taxes at the city or county level. Unlike states like Pennsylvania or Ohio, Tennessee only collects federal taxes and FICA, which simplifies your Tennessee paycheck calculation significantly.

However, Tennessee does have a state sales tax of 7% (plus local sales taxes that can bring the total to 9.75% in some areas), which is among the highest in the nation. While these don't directly affect your paycheck, they're important to consider when evaluating the total cost of living in Tennessee. Your Tennessee paycheck calculator results will show your take-home pay after federal income tax and FICA taxes only—no state or local income taxes.

This makes Tennessee an extremely attractive state for workers who want to maximize their take-home pay, as the absence of state income tax means more money in your pocket each paycheck. This is especially valuable for workers in Tennessee's growing healthcare, music, automotive, and tech industries.

Understanding Tennessee's Cost of Living

While Tennessee has no state income tax, the cost of living in Tennessee varies significantly by location. Major cities like Nashville have experienced rapid growth and rising housing costs, while smaller cities and rural areas remain very affordable. Overall, Tennessee's cost of living is generally lower than the national average, making it an attractive destination for workers.

Housing costs in Nashville and Memphis are generally close to or slightly above the national average, while Knoxville and Chattanooga are typically below average. The combination of no state income tax and relatively affordable cost of living makes Tennessee an excellent choice for maximizing purchasing power.

However, Tennessee's high sales tax (up to 9.75% in some areas) can offset some of the benefits of no income tax, particularly for lower-income workers who spend a larger percentage of their income on taxable goods. When evaluating job offers in Tennessee, consider both the higher take-home pay due to no state income tax and the higher sales tax rates.

Example: Tennessee Paycheck Calculation

Let's calculate the Tennessee take-home pay for someone earning $75,000 per year in Nashville, filing as married filing jointly, with a 5% 401(k) contribution:

• Gross annual salary: $75,000
• 401(k) contribution (5%): $3,750 (pre-tax)
• Federal taxable income: ~$60,250 (after standard deduction)
• Federal income tax: ~$5,800
• FICA taxes (Social Security + Medicare): $5,737
• Tennessee state tax: $0 (no state income tax!)
• Tennessee take-home pay (annual): $59,713
• Bi-weekly Tennessee paycheck: ~$2,297

This example demonstrates how the Tennessee paycheck calculator works. With no state income tax, your Tennessee take-home pay is maximized compared to states with income taxes. The same $75,000 salary in Kentucky would result in approximately $56,000-$58,000 take-home pay due to state taxes.

Multiple Salary Examples: Tennessee Take-Home Pay

Understanding how different salary levels affect your Tennessee take-home pay helps with financial planning:

Entry-Level ($50,000 salary, single filer): After federal taxes (~$4,400), FICA (~$3,825), and no state tax, annual take-home pay is approximately $41,775, or $1,607 per bi-weekly paycheck.

Mid-Career ($75,000 salary, married filing jointly): After federal taxes (~$5,800), FICA (~$5,737), and no state tax, annual take-home pay is approximately $63,463, or $2,441 per bi-weekly paycheck.

Senior Level ($110,000 salary, married filing jointly, 8% 401(k)): After 401(k) contribution ($8,800), federal taxes (~$9,800), FICA (~$7,743), and no state tax, annual take-home pay is approximately $83,657, or $3,218 per bi-weekly paycheck.

High Earner ($140,000 salary, single filer, 10% 401(k)): After 401(k) contribution ($14,000), federal taxes (~$18,800), FICA (~$9,630), and no state tax, annual take-home pay is approximately $97,570, or $3,753 per bi-weekly paycheck.

Comparing Tennessee to Neighboring States

Understanding how Tennessee compares to nearby states helps when evaluating job offers or considering relocation:

Tennessee vs. Kentucky: Kentucky has a flat 4% state income tax. Someone earning $75,000 in Tennessee takes home approximately $63,500, compared to about $60,000-$61,000 in Kentucky—a difference of $2,500-$3,500 per year.

Tennessee vs. North Carolina: North Carolina has a flat 4.75% state income tax. Someone earning $75,000 in Tennessee takes home approximately $63,500, compared to about $59,000-$60,000 in North Carolina—a difference of $3,500-$4,500 per year.

Tennessee vs. Georgia: Georgia has a flat 5.49% state income tax. Someone earning $75,000 in Tennessee takes home approximately $63,500, compared to about $58,000-$59,000 in Georgia—a difference of $4,500-$5,500 per year.

Tennessee vs. Alabama: Alabama has a flat 5% state income tax. Someone earning $75,000 in Tennessee takes home approximately $63,500, compared to about $59,000-$60,000 in Alabama—a difference of $3,500-$4,500 per year.

Tennessee vs. Arkansas: Arkansas has a flat 4.5% state income tax. Someone earning $75,000 in Tennessee takes home approximately $63,500, compared to about $60,000-$61,000 in Arkansas—a difference of $2,500-$3,500 per year.

Tennessee-Specific Industries and Considerations

Tennessee's economy is diverse, with several major industries that benefit from the lack of state income tax:

Healthcare Industry: Tennessee is home to major healthcare companies and hospitals, particularly in Nashville. The healthcare industry offers competitive salaries, and the lack of state income tax makes Tennessee attractive for healthcare professionals.

Music and Entertainment: Nashville's music industry and entertainment sector provide employment opportunities. The lack of state income tax helps maximize take-home pay for workers in this often variable-income industry.

Automotive Manufacturing: Tennessee is home to major automotive manufacturing facilities. The automotive industry offers competitive wages, and the lack of state income tax provides additional benefits.

Technology: Tennessee's tech sector is growing, particularly in Nashville and Chattanooga. The lack of state income tax makes Tennessee attractive for tech workers, especially compared to high-tax tech hubs.

Remote Work: Tennessee's low cost of living and lack of state income tax make it an attractive destination for remote workers who can work from anywhere.

2026 Planning Tips for Tennessee Employees

• Update your W-4: If you want to adjust your Tennessee take-home pay, update your W-4 if you picked up a second job, got married, or expect significant itemized deductions in 2026.
• Maximize pre-tax benefits: Leverage pre-tax benefits—every dollar you contribute to a 401(k) or HSA reduces your federal taxable income, increasing your take-home pay. In Tennessee, you get the full benefit since there's no state tax to save on.
• Track Social Security wage base: Track your year-to-date taxable wages. Once you hit the Social Security wage base ($168,600 in 2025), your Tennessee take-home pay will increase because OASDI withholding stops for the rest of the year.
• Consider total cost of living: While Tennessee has no income tax, remember to consider property taxes, sales taxes (up to 9.75% in some areas), and cost of living when evaluating your overall financial situation. Tennessee's high sales tax can offset some income tax benefits for lower-income workers.
• Research location-specific costs: Cost of living varies significantly between Nashville, Memphis, Knoxville, and Chattanooga. Research housing, utilities, and transportation costs in your specific Tennessee location when evaluating job offers.
• Budget for sales tax: Tennessee's high sales tax (7% base plus local taxes up to 9.75%) means you'll pay more on purchases. Factor this into your budget when planning your spending.

Frequently Asked Questions About Tennessee Paycheck Calculator