Zero. Tennessee has no state income tax on wages and salaries. Like Texas and Florida, your paycheck only has federal tax and FICA deductions. No state line item, period.

Tennessee used to tax investment income (the "Hall Tax") but fully repealed it starting in 2021. So now there's truly no state income tax of any kind. Your only deductions are federal progressive brackets with the standard deduction, plus FICA at 7.65% combined.

A $100,000 earner in Tennessee takes home roughly $79,000 — the same as Texas and Florida. Compare that to California where the same salary yields about $71,000 after state tax. That's an $8,000 difference that stays in your pocket.

But Tennessee compensates with higher sales taxes. The combined sales tax averages around 9.56% — one of the highest in the nation. Property taxes are relatively low at about 0.71% average effective rate. For retirees, Tennessee is attractive: no tax on Social Security, IRA withdrawals, 401(k) distributions, or pension income. Run the numbers for your situation.

How It's Calculated

Formula

Net Pay = Gross Income − (Federal Tax + FICA) — no state income tax on wages

Step-by-Step

1Skip state income tax — Tennessee has 0% income tax on wages and salaries
2The Hall Tax on investment income was fully repealed in 2021
3Subtract pre-tax deductions (401(k), HSA) from gross pay
4Apply federal standard deduction and progressive brackets (10%–37%)
5Calculate FICA: 6.2% Social Security (up to $184,500) + 1.45% Medicare

Example

$100,000 salary, single in TN: Federal tax ≈ $11,670. FICA = $7,650. No state tax. Net ≈ $80,680/year.

For detailed data sources and full methodology, see our Methodology & Data Sources page.

Key Rates & Data for 2026

TN State Income Tax

TN Avg Combined Sales Tax

~9.56%

TN Avg Property Tax Rate

~0.71%

Federal Standard Deduction

$16,100 (single)

Social Security Rate

6.2% (up to $184,500)

Tennessee Tax Calculator FAQ

Does Tennessee have a state income tax?

No. Tennessee has 0% income tax on wages and salaries. The Hall tax, which previously taxed dividends and interest income, was fully eliminated as of January 1, 2021. Tennessee is one of nine states with no personal income tax on wages, making it attractive for high earners and retirees alike.

How does Tennessee make up for no income tax?

Sales tax — and it's one of the highest in the nation. The state rate is 7% (highest state rate in the country that charges a traditional sales tax), and with local option taxes, the average combined rate reaches about 9.56%. Tennessee also relies on franchise and excise taxes on businesses, plus property taxes averaging about 0.64% effective rate. There's no state property tax — it's all local.

Is Tennessee really tax-free if sales tax is so high?

For most wage earners, yes. The math is straightforward: a $75K earner pays $0 in state income tax but might pay $4,000-5,000 in sales tax annually depending on spending. Compare that to a state like Georgia, where the same earner pays about $3,673 in income tax plus lower sales tax. If you're a high earner who doesn't spend extravagantly, Tennessee comes out way ahead. The more you earn relative to what you spend, the bigger the Tennessee advantage.

Does Tennessee tax retirement income?

No. With the Hall tax eliminated, Tennessee doesn't tax any personal income — not wages, not Social Security, not 401(k) withdrawals, not IRA distributions, not pension income. It's one of the most tax-friendly states for retirees, especially those with significant retirement account distributions that would be taxed in most other states.

What is the true cost of living tax burden in Tennessee?

For a household earning $75K with a $270K home and typical spending, you're looking at roughly $4,700 a year in non-income taxes — about $1,730 in property taxes plus $2,970 in estimated sales taxes (at the average 9.56% combined rate on $31K in taxable spending). That compares favorably to Georgia ($3,673 income tax + lower sales tax) for most earners.

Florida vs Texas Tax Comparison

A detailed comparison of the tax structures in Florida and Texas — two of the most popular no-income-tax states for relocation.

2026 Tax Brackets: IRS Income Tax Brackets 2026 Explained

Complete guide to the IRS 2026 tax brackets — income tax brackets 2026, marginal tax rate, federal income tax rates, adjusted gross income, and tax credits for married couples filing jointly.

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