What Tennessee taxes instead
Tennessee funds itself through one of the highest combined sales tax rates in the country.
- Sales tax. Tennessee runs among the highest combined state and local sales tax rates nationally. The trade-off is explicit: nothing is taken from your paycheck, but nearly every purchase costs more than it would in most states.
- Groceries taxed. Unlike most states, Tennessee taxes food for home consumption, at a reduced state rate with full local rates still applying. That broadens the base and makes the sales tax burden fall more heavily on lower-income households.
- Hall tax — repealed. Tennessee formerly taxed interest and dividend income under the Hall tax. It was fully repealed effective 2021, so Tennessee now has no personal income tax of any kind.
None of this touches your paycheck — the calculator above shows federal tax and FICA only, because that is genuinely all Tennessee withholds. The catch is that a bigger paycheck is not the same as a lower total burden: what the state skips on income it generally collects somewhere else. Compare against a state that does tax income using the state paycheck calculators.
Top Cities in Tennessee
The largest cities in Tennessee, by U.S. Census Bureau estimate for July 1, 2025:
- Nashville — 721,074 residents
- Memphis — 609,647 residents
- Knoxville — 202,021 residents
- Chattanooga — 194,144 residents
How Tennessee Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Tennessee |
|---|---|---|
| Tennessee (here) | $61,593 | — |
| Kentucky | $59,085 | -$2,507 |
| Virginia | $58,094 | -$3,498 |
| North Carolina | $59,109 | -$2,484 |
| Georgia | $58,599 | -$2,994 |
| Alabama | $58,466 | -$3,127 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What is the Tennessee state income tax rate?
Tennessee has no state income tax on wages. Your mandatory paycheck deductions are federal income tax (10–37% depending on income), Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, plus 0.9% on wages over $200K).
How much is taken out of my paycheck in Tennessee?
For a single filer earning $75,000 in Tennessee (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA — leaving about $61,593 take-home (17.9% effective tax rate). Tennessee has no state paid-leave premium and no local income tax, so those are the only deductions required by law.
Does Tennessee take state tax out of my paycheck?
No. Tennessee has no income tax on wages, no local wage taxes, and no state disability or paid leave premium. Only federal income tax, Social Security, and Medicare are withheld.
How long does my employer have to give me my final paycheck in Tennessee?
21 calendar days from the date you leave. You have to wait out those 21 days before filing a wage complaint.
Is my employer required to pay out unused vacation in Tennessee?
Not by state law. Tennessee does not regulate vacation or other fringe benefits, so it depends on your employer's policy.
What is the minimum wage in Tennessee?
Tennessee has no state minimum wage, so the federal minimum of $7.25 an hour applies to employers covered by federal law.
Is there Tennessee tax on a bonus?
No. A bonus loses federal tax, typically withheld at a flat 22% when paid separately, and 7.65% for Social Security and Medicare, nothing more. Out of $10,000 you would see about $7,035.