Tennessee Paycheck Calculator
Calculate your take-home pay in Tennessee. Great news — Tennessee has no state income tax on wages. Your only deductions are federal taxes and FICA. Free, instant, and always up to date.
Tennessee Paycheck Calculator
2025 tax year · estimate
Why Tennessee has no state income tax
Tennessee is one of 9 states with no state income tax on wages. The state funds its government primarily through sales taxes (7% state + local) and other consumption-based taxes.
As a Tennessee employee, your paycheck deductions are limited to:
- Federal income tax (10%–37%)
- Social Security (6.2% up to $176,100)
- Medicare (1.45% + 0.9% over $200k)
- Any voluntary pre-tax deductions (401k, health insurance, etc.)
The Hall Tax on investment income (dividends and interest over $1,250/$2,500) was fully repealed in 2021. Tennessee now has zero state income tax on any form of income.
Tennessee vs. neighboring states
See how much more you keep in Tennessee
| State | Top Tax Rate | Notes |
|---|---|---|
| Tennessee | 0% | No state income tax on wages |
| Kentucky | 4.0% | Flat rate |
| Virginia | 5.75% | Progressive brackets |
| North Carolina | 4.5% | Flat rate |
| Georgia | 5.49% | Flat rate (as of 2024) |
| Alabama | 5.0% | Progressive brackets |
| Mississippi | 5.0% | Flat rate (as of 2026) |
| Arkansas | 3.9% | Top marginal rate |
Example: $3,000 biweekly paycheck in Tennessee
Scenario: Single, $200 401(k), $150 health insurance
No state tax = more take-home pay. Amounts are per pay period.
Who uses this calculator
Tennessee employees
Verify your paycheck accuracy — confirm only federal taxes and FICA are deducted.
People moving to TN
See how much more you'll take home compared to your current state. No state tax is a big deal.
Job seekers
Compare Tennessee offers against jobs in states with income tax. Your $70k in TN is worth more.
Payroll admins
Cross-check federal withholding for TN employees — no state tax means simpler payroll.
Remote workers
Considering relocating to Tennessee for the tax advantage? See your potential take-home pay.
Financial planners
Help clients understand the full picture — no income tax but higher sales tax and other considerations.
Frequently asked questions
Does Tennessee have a state income tax?
No. Tennessee does not tax wages, salaries, or other earned income. The Hall Tax on investment income (dividends and interest) was fully repealed in 2021. Tennessee is one of the most tax-friendly states for workers.
What is the Tennessee Professional Privilege Tax?
Tennessee levies a $400 annual Professional Privilege Tax on certain licensed professionals including doctors, lawyers, accountants, architects, and engineers. This is a flat annual fee — not a paycheck deduction — and is not calculated by this tool.
What taxes are deducted from a Tennessee paycheck?
Tennessee employees pay federal income tax (10%–37%), Social Security (6.2% up to $176,100), and Medicare (1.45% + 0.9% over $200k). That's it — no state income tax, no state payroll programs.
Does Tennessee have local income taxes?
No. Tennessee does not have county or municipal income taxes. However, Tennessee has a relatively high state sales tax (7%) plus local sales taxes, which is how the state funds services without an income tax.
Is 401(k) pre-tax in Tennessee?
Since Tennessee has no state income tax, the question is moot for state taxes. Your 401(k) contributions still reduce your federal taxable income, which lowers your federal tax withholding.
How does Tennessee compare to other states for take-home pay?
Tennessee workers generally take home more per paycheck than workers in states with income taxes. The absence of state income tax means your only deductions are federal taxes and FICA. However, Tennessee has higher sales and property taxes to compensate.
How accurate is this calculator?
This calculator provides a close estimate based on 2025 federal tax rates and standard withholding formulas. Since Tennessee has no state income tax, the calculation is simpler and more accurate. Your actual paycheck may vary based on your employer's payroll system and W-4 elections.
I'm moving to Tennessee from another state. How will my paycheck change?
Your take-home pay will increase by the amount you were paying in state income tax. For example, if you were paying 5% state tax in your previous state, you'll see roughly a 5% increase in net pay. Use both calculators to compare.