Tennessee Paycheck Calculator 2026
Tennessee has no state income tax. Estimate federal + FICA net pay below.
Last updated: November 2025
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Tennessee 2026 tax overview
No state individual income tax (Hall tax repealed 2021).
Breakdown
No income tax brackets in Tennessee
There is no bracket table on this page because Tennessee has none: it does not tax wage income at all. What you owe is federal income tax and FICA, and those are shown in the breakdown above.
Where Tennessee gets the money instead
Tennessee swapped an income tax for sales tax: it repealed the Hall tax on interest and dividends in 2021 and now has one of the highest combined sales tax rates in the United States, which falls hardest on lower-income households.
Approximate effective rates from Tax Foundation state comparisons, shown to give the order of magnitude of the trade-off. They move a little each year; check your county assessor for the figure that applies to you.
Tennessee repealed its Hall tax on interest and dividends in 2021 and now taxes no personal income. It has one of the highest combined sales tax rates in the country instead.
Frequently Asked Questions
Does Tennessee have a state income tax?
No. Tennessee levies no state income tax on wages for tax year 2026. No state individual income tax (Hall tax repealed 2021). Federal income tax and FICA still apply: Social Security at 6.2% on wages up to $184,500 and Medicare at 1.45%, plus 0.9% additional Medicare above $200,000 single or $250,000 married filing jointly.
If Tennessee has no income tax, what does it tax instead?
Tennessee swapped an income tax for sales tax: it repealed the Hall tax on interest and dividends in 2021 and now has one of the highest combined sales tax rates in the United States, which falls hardest on lower-income households. The effective property tax rate runs around 0.66% of a home's value per year, and the combined average state and local sales tax rate is about 9.55% (among the highest in the country). Before treating a move as a tax cut, price both against what you would have paid in income tax where you are now.
What surprises people most about Tennessee income tax?
Tennessee repealed its Hall tax on interest and dividends in 2021 and now taxes no personal income. It has one of the highest combined sales tax rates in the country instead.