Your hub for Tennessee taxes: no state income tax, plus free calculators for take-home pay, self-employment tax, quarterly estimates, and salary conversion.
Last updated: May 2026 · Data: IRS, BLS, Tennessee Department of Revenue
In Tennessee, the only taxes withheld from a typical paycheck are federal income tax and FICA (Social Security and Medicare), because there is no broad state income tax on wages. Tennessee has no state income tax on wages or salaries. The state previously taxed interest and dividend income (the Hall Tax), but this was fully repealed as of January 2021. Tennessee relies on its 7% sales tax for revenue.
| Tax | 2026 Rate / Detail |
|---|---|
| Tennessee State Income Tax | No state income tax |
| Tennessee State Sales Tax (base) | 7% |
| Federal Income Tax | 10% to 37% (progressive brackets) |
| Social Security | 6.2% on first $176,100 |
| Medicare | 1.45% on all wages (plus 0.9% above $200,000) |
| Federal Standard Deduction (Single / MFJ) | $15,000 / $30,000 |
| Minimum Wage | $7.25 / hour |
| State Tax Authority | Tennessee Department of Revenue |
No. Tennessee is one of the nine states with no broad state income tax on wages. Tennessee has no state income tax on wages or salaries. The state previously taxed interest and dividend income (the Hall Tax), but this was fully repealed as of January 2021. Tennessee relies on its 7% sales tax for revenue.
Because Tennessee has no state income tax, the taxes withheld from a typical paycheck are federal income tax, Social Security (6.2% up to $176,100), and Medicare (1.45%). Use the take-home pay calculator to estimate your net pay.
Tennessee has no state income tax, so self-employment income is not subject to state income tax. Self-employed workers still owe federal self-employment tax (15.3%) and federal income tax. See the self-employment tax calculator above.
Yes, for federal taxes. Even without state income tax, self-employed Tennessee residents who expect to owe federal tax generally make quarterly estimated payments to the IRS. The quarterly tax calculator estimates the amounts and due dates.
The Tennessee statewide base sales tax rate is 7%. Local jurisdictions may add their own rates.