What taxes do Tennessee residents pay?

Tennessee residents pay federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%). While there is no state income tax, Tennessee may have higher sales tax or property tax rates to compensate for state revenue.

Is Tennessee a tax-friendly state?

Tennessee is generally considered tax-friendly because it has no state income tax. However, total tax burden also depends on property taxes, sales taxes, and other state and local taxes that may be higher than average.

How do I calculate my total Tennessee tax bill?

Your total tax includes federal income tax (10%–37%), Social Security (6.2% on the first $176,100), Medicare (1.45%), and no state income tax since Tennessee doesn't levy one. Use our free calculator above for an instant breakdown.

Tennessee Income Tax Calculator 2026

Estimate your Tennessee (TN) income tax for 2026. Tennessee has no state income tax on wages. Enter your income below and click “Calculate Taxes” for an instant breakdown.

Note: Hall Tax on investment income fully repealed 2021

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Tennessee Income Tax Overview

Tennessee is one of nine states with no state income tax on wages. Residents only pay federal income tax and FICA (Social Security and Medicare). This makes Tennessee one of the most tax-friendly states for workers.

Key Facts About Tennessee Taxes

Tennessee fully repealed its Hall Tax on investment income in 2021, making it completely income-tax-free. The state had gradually reduced the rate from 6% starting in 2016.

Tennessee has one of the highest combined state and local sales tax rates in the country, averaging about 9.55%, which is how the state compensates for no income tax.

Nashville and Memphis have seen rapid growth partly due to Tennessee's tax-friendly environment attracting businesses and remote workers.

Frequently Asked Questions

Does Tennessee have a state income tax?: No. Tennessee is one of nine states with no state income tax on wages. Residents only pay federal income tax and FICA taxes (Social Security at 6.2% and Medicare at 1.45%).
What taxes do Tennessee residents pay?: Tennessee residents pay federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%). While there is no state income tax, Tennessee may have higher sales tax or property tax rates to compensate for state revenue.
Is Tennessee a tax-friendly state?: Tennessee is generally considered tax-friendly because it has no state income tax. However, total tax burden also depends on property taxes, sales taxes, and other state and local taxes that may be higher than average.
How do I calculate my total Tennessee tax bill?: Your total tax includes federal income tax (10%–37%), Social Security (6.2% on the first $176,100), Medicare (1.45%), and no state income tax since Tennessee doesn't levy one. Use our free calculator above for an instant breakdown.

Related Calculators & Resources

Tennessee Paycheck Calculator

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Federal Tax Calculator

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All 50 State Tax Rates

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Tennessee Tax Brackets

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Tennessee Take-Home Pay

Detailed net pay breakdown for Tennessee

Tennessee Total Tax Burden

Combined federal, state, and local taxes