Tennessee Payroll Tax Calculator 2026
Calculate your exact Tennessee take-home pay. Tennessee has no state income tax — Includes federal taxes and FICA.
| Deduction | Per Paycheck | Annual |
|---|---|---|
| Gross Pay | — | — |
| Federal Income Tax | — | — |
| No State Tax | $0 | $0 |
| Social Security (6.2%) | — | — |
| Medicare (1.45%) | — | — |
| Total Deductions | — | — |
| Net Take-Home | — | — |
Tennessee Payroll Tax Calculator 2026
Tennessee has no state income tax on wages, salaries, or earned income. The Hall Income Tax — which taxed interest and dividends at 1% — was fully eliminated on January 1, 2021. Tennessee now has no individual income tax of any kind.
Because Tennessee has no state income tax, your full paycheck is only subject to federal income tax withholding and FICA (Social Security + Medicare). This can result in take-home pay that is $200–$500/month higher than equivalent earnings in high-tax states like California or New York.
All Payroll Deductions in Tennessee (2026)
- Federal income tax: 10%–37% (2026 IRS brackets; single filer pays 22% bracket above ~$50,000 taxable income)
- Tennessee state income tax: No state income tax on wages
- Social Security: 6.2% on wages up to $176,100 (2026 wage base)
- Medicare: 1.45% on all wages (no cap); additional 0.9% on wages over $200,000
- Payroll Taxes Guide
- Overtime Rules
- Tax Withholding Guide
Notable Tennessee Tax Features
Tennessee is the most populous of the states with no income tax (larger than Nevada or Wyoming). Tennessee funds state services primarily through its 7% base sales tax, one of the highest in the country. Combined with local rates, the total sales tax in many Tennessee cities is 9%–10%.
Tennessee vs Neighboring States
Tennessee workers keep 100% of their earned wages from state income taxation, saving approximately $2,500–$6,000/year compared to neighboring Kentucky (4% flat) or North Carolina (4.5% flat) at equivalent income levels.
About This Calculator
This Tennessee payroll tax calculator uses 2026 federal and state rates from IRS Publication 15-T and the Tennessee Department of Revenue. Results are estimates based on the annualized withholding method. Actual withholding may differ based on W-4 elections, local income taxes, itemized deductions, tax credits, and pre-tax benefits. Always verify with your payroll provider or a tax professional for official payroll purposes.