Tennessee rules
Why Tennessee paychecks are bigger
Tennessee is one of nine states with no personal income tax. It went a step further than most by phasing out the "Hall income tax" on interest and dividends, which fully ended in 2021. For a salaried worker, the only deductions on your stub are federal: income tax, Social Security and Medicare.
Take-home pay at common Tennessee salaries
| Gross salary | Est. annual take-home | Monthly |
|---|---|---|
| $50,000 | ~$42,400 | ~$3,530 |
| $65,000 | ~$53,600 | ~$4,470 |
| $100,000 | ~$79,200 | ~$6,600 |
| $150,000 | ~$113,500 | ~$9,460 |
Single filer, standard deduction, 2026 federal brackets and FICA. Married filers keep more.
The trade-off: sales tax
Tennessee funds services largely through one of the highest combined sales taxes in the nation — a 7% state rate plus local add-ons that push the combined rate near 9.5% in many areas, and the state taxes groceries too. So while your paycheck is larger, everyday purchases cost more.
Comparing Tennessee to other states
If you're weighing a move, run the same salary through a tax state to see the gap. Try Georgia or North Carolina for contrast, or compare with fellow no-tax state Florida.
Tennessee — the full tax picture
Beyond income tax: what Tennessee really costs
Your paycheck is only half the story. To judge whether Tennessee is genuinely tax-friendly, you have to look at the three taxes that hit working households the hardest — income, sales and property — together.
Sales tax
Tennessee's average combined sales tax is about 9.5% — the highest in the country — since the state fully relies on sales tax after repealing its Hall investment-income tax in 2021.
Property tax
Effective property tax averages roughly 0.6%, among the lower rates nationally.
Cost of living in the biggest metro
Nashville's cost of living has risen above the US average, while Memphis, Knoxville and Chattanooga remain affordable.
How Tennessee fits the national picture
For a complete side-by-side of all nine no-income-tax states and how their sales and property taxes compare, see our guide to states with no income tax. To benchmark a specific salary across states, use the take-home pay by state calculator or compare a high-tax example like California.
Questions
Tennessee salary calculator FAQ
Does Tennessee have a state income tax?
No. Tennessee is one of nine U.S. states with no personal income tax on wages. It also fully eliminated its former Hall tax on interest and dividends in 2021, so your paycheck is reduced only by federal income tax, Social Security and Medicare.
How much is taken out of a paycheck in Tennessee?
In Tennessee only federal taxes apply: federal income tax based on your bracket, 6.2% Social Security and 1.45% Medicare. On a $65,000 single salary, total deductions are roughly 18% to 20%.
What is the take-home pay on $65,000 in Tennessee?
A single filer earning $65,000 in Tennessee takes home roughly $53,600 a year, since there is no state income tax — only federal tax and FICA are withheld.
If Tennessee has no income tax, how does it fund services?
Tennessee relies on one of the highest combined sales-tax rates in the country — a 7% state rate plus local add-ons reaching about 9.5% — and it taxes groceries. So while paychecks are larger, everyday spending costs more.
- Sources: Tennessee Department of Revenue (no income tax; Hall tax repealed 2021) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 25, 2026 · Tax year 2026
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