Does Tennessee have a state income tax?

No. Tennessee has no state income tax on wages, salaries, or any other earned income. The state previously levied the Hall Tax on interest and dividend income, but that was fully repealed effective January 1, 2021. Tennessee workers pay only federal income tax, Social Security (6.2%), and Medicare (1.45%).

What was the Hall Tax and when was it repealed?

The Hall Income Tax was Tennessee's tax on interest and dividend income exceeding $1,250 (single) or $2,500 (joint). It was phased down from 6% starting in 2016 and fully repealed on January 1, 2021, making Tennessee a true zero-income-tax state. Wages and salaries were never subject to the Hall Tax.

How much do I save in Tennessee compared to Georgia?

On an $80,000 salary (single filer), you save roughly $3,387/year in Tennessee vs Georgia. Georgia's flat 5.19% state income tax (after a $12,000 standard deduction and $2,700 personal exemption) adds up quickly. The savings grow at higher incomes. Use the Compare States tab to see exact numbers for your salary.

How does Tennessee compare to other no-income-tax states?

Tennessee, Florida, Texas, Nevada, Wyoming, South Dakota, Alaska, Washington, and New Hampshire have no state income tax on wages. Your take-home pay from salary is identical across all of these states — the only differences are in property tax rates, sales tax, and cost of living. Tennessee's sales tax (7% state + up to 2.75% local) is among the highest in the nation.

Tennessee Paycheck Calculator 2026

Zero state income tax — Hall Tax fully repealed in 2021. Your $80K salary becomes $64,831 after federal and FICA only.

2026 federal tax rates · Updated April 2026

Gross annual salary

Pay frequency

Filing status

Tennessee has no state income tax — the Hall Tax on investment income was fully repealed in 2021. Your only deductions are federal and FICA.

Take-home per paycheck (biweekly)

$2,493.50

Gross pay (annual)$80,000

Deductions (annual)

Federal income tax−$9,049

Social Security (6.2%)−$4,960

Medicare (1.45%)−$1,160

Tennessee state income tax$0

Summary

Annual take-home$64,831

Effective tax rate19.0%

You keep per dollar81 cents

Calculate for other states

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Tennessee Paycheck Calculator 2026 · Updated April 2026

How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. Tennessee has no state income tax — the Hall Tax on investment income was fully repealed in 2021 — so the calculator deducts only federal income tax and FICA (Social Security + Medicare). Under "More options," add 401(k) contributions and health insurance premiums to see how pre-tax deductions boost your take-home. You'll see your per-paycheck net and an annual summary with your effective tax rate.

Tab "Tax Breakdown"

A visual pie chart showing exactly where your money goes. Tennessee charges zero state tax, so you'll see only three slices: federal income tax, Social Security, and Medicare. The chart also shows how many cents of every dollar you keep — a number that's consistently higher in Tennessee than in neighboring Georgia or North Carolina.

Tab "Compare States"

Enter any salary and see your take-home pay side-by-side: Tennessee vs Georgia vs Florida. Georgia uses a flat 5.19% rate (with a $12,000/$24,000 standard deduction and personal exemptions), so the difference is real. Florida, like Tennessee, has no income tax — so both states produce identical take-home pay. This tab shows you exactly how many dollars per year and per month you save by living in a no-tax state.

The Formulas

Federal Income Tax (2026 brackets, progressive):
1. Start with gross annual salary
2. Subtract pre-tax deductions (401k, health insurance)
3. Subtract standard deduction ($15,750 Single / $31,500 MFJ / $23,500 HoH)
4. Apply progressive brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Gross wages, $184,500)
Medicare = 1.45% x Gross wages
Additional Medicare = 0.9% x max(0, Gross wages - $200,000)

Tennessee State Income Tax = $0
Tennessee has no income tax on wages or salary. The Hall Tax on interest/dividend income was fully repealed January 1, 2021. No local income taxes apply. No state disability insurance or additional payroll taxes.

Take-Home Pay:
Net = Gross salary - Federal tax - Social Security - Medicare - Pre-tax deductions

All figures use 2026 IRS rates: SS wage base $184,500 (SSA), tax brackets from Rev. Proc. 2025-32, TCJA rates made permanent by OBBBA. Georgia comparison uses the flat 5.19% rate with standard deduction and personal exemption.

Example

Maya — Nurse in Nashville, Tennessee

Filing Single. $80,000/year salary. Paid biweekly (26 paychecks). No pre-tax deductions.

Gross salary (annual)$80,000

Federal income tax-$9,049

Social Security (6.2%)-$4,960

Medicare (1.45%)-$1,160

Tennessee state tax$0

Annual take-home$64,831

Per paycheck (biweekly)$2,493.50

Maya keeps 81.0% of her gross salary. Compare: in Georgia she'd net about $61,444 after paying 5.19% state tax (on income above the $12,000 deduction and $2,700 exemption), costing her roughly $3,387/year. In Florida, her take-home would be identical to Tennessee — both are zero-income-tax states.

Frequently Asked Questions

Does Tennessee have any income tax at all?▼

No. Tennessee has no state income tax on wages, salaries, or any other income. The state previously had the Hall Income Tax, which applied to interest and dividend income, but it was phased out between 2016 and 2021. As of January 1, 2021, Tennessee is a true zero-income-tax state. There are no local income taxes anywhere in Tennessee either.

What was the Hall Tax and why was it repealed?▼

The Hall Income Tax was Tennessee's tax on interest and dividend income that exceeded $1,250 for single filers ($2,500 for joint filers). At its peak, the rate was 6%. Starting in 2016, the Tennessee legislature passed a series of annual reductions: 5% in 2016, 4% in 2017, 3% in 2018, 2% in 2019, 1% in 2020, and 0% effective January 1, 2021. The repeal was part of a broader strategy to make Tennessee more competitive with other no-income-tax states like Florida and Texas for attracting businesses and high-income residents.

How does Tennessee compare to Georgia for take-home pay?▼

Tennessee workers take home significantly more than Georgia workers at the same salary. Georgia charges a flat 5.19% state income tax (reduced from 5.39% in 2025). On an $80,000 salary, a single filer saves roughly $3,387/year by living in Tennessee instead of Georgia. The gap grows at higher incomes. However, Tennessee has one of the highest combined sales tax rates in the country (up to 9.75%), while Georgia's combined rate caps at 9%. Property taxes and cost of living vary by city.

How does Tennessee fund its government without income tax?▼

Tennessee relies on sales tax (7% state rate, one of the highest in the US), property taxes, business taxes (franchise and excise taxes), and federal transfers. The state sales tax on groceries was reduced to 4% in recent years but remains higher than most states. Local governments can add up to 2.75% in local sales tax, bringing the combined rate as high as 9.75%. Despite having no income tax, Tennessee consistently runs balanced budgets due to strong sales tax collections and relatively low per-capita spending.

Is my take-home pay the same in Tennessee, Florida, and Texas?▼

Yes, from a pure income tax perspective. Tennessee, Florida, Texas, and the other six no-income-tax states (Alaska, Nevada, New Hampshire, South Dakota, Washington, Wyoming) all produce identical take-home pay for the same salary because none of them tax wages. The differences between these states show up in property taxes, sales taxes, and cost of living. Texas has higher property taxes (avg 1.74%) while Tennessee has higher sales taxes (up to 9.75%). Use the Compare States tab to see the identical take-home figure and then factor in your personal spending patterns.

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