Take Home Pay for Tennessee (2026)
Last updated: January 15, 2026
Tennessee (TN) Key Facts
State Income Tax
0%
Sales Tax Rate
7%
Property Tax Rate
0.71%
Overall State Tax Burden
7.7% combined rates
How This Calculator Works in Tennessee
This calculator estimates your take-home pay in Tennessee, factoring in federal income tax, FICA, and the absence of state income tax.
Tennessee Overview
Take-home pay in Tennessee benefits from zero state income tax—only federal income tax and FICA reduce your paycheck. No state income tax withholding. Tennessee repealed its Hall Tax on investment income, making it fully income-tax-free.
How Tennessee Compares
Tennessee's combined rates (income: 0%, sales: 7%, property: 0.71%) compare to Kentucky (4%, 6%, 0.86%) and Virginia (5.75%, 5.3%, 0.82%).
| State | Top Rate | Notes |
|---|---|---|
| Kentucky | 4% | Kentucky has an income tax rate of 4%. |
| Virginia | 5.75% | Virginia has an income tax rate of 5.75%. |
| North Carolina | 4.5% | North Carolina has an income tax rate of 4.5%. |
Tennessee's income tax rate of 0% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Tennessee Residents
- 1Tennessee has no state income tax, giving you higher take-home pay than most states.
- 2Even without state income tax, federal income tax and FICA (7.65%) still reduce your paycheck.
- 3No state income tax withholding. Tennessee repealed its Hall Tax on investment income, making it fully income-tax-free.
- 4Maximize pre-tax 401(k) and HSA contributions to further reduce federal taxable income and boost take-home.
- 5Review your W-4 annually—without state tax to offset, some workers under-withhold federally.