Tennessee has no state income tax on wages in 2026 — making it one of nine US states where workers pay only federal income tax and FICA on their earnings. Tennessee fully eliminated its Hall Income Tax (which previously taxed investment income) as of 2021. No Tennessee state income tax return is required for wage earners. On a $75,000 salary, a Tennessee worker pays approximately $10,200 in federal income tax and $5,738 in FICA, taking home about $59,000. Tennessee funds state government through a 7% state sales tax and local add-ons.
2025 federal + simplified state + FICA — updates as you type.
State: Tennessee (pre-selected; change the dropdown for other states)
Tennessee has no state wage income tax in this model (0% state rate). Federal tax, FICA, and sales/property taxes are separate — see tables below.
Not applied in this simplified model (no credits). For illustration only.
State tax uses a flat effective rate on taxable income — not your actual state brackets. FICA: Social Security 6.2% on wages up to $176,100 and Medicare 1.45% on all wages shown.
SS $4,650.00 · Medicare $1,087.50
Federal 22.00% + state 0.00%
Estimated take-home
$61,149 / yr
$5,096 / month
Federal brackets (2025 · Single)
| Tax Type | Tennessee Rate | Notes |
|---|---|---|
| State income tax on wages | 0% | No state return required |
| Hall Income Tax | Eliminated | Fully repealed in 2021 |
| Federal income tax | 10%–37% | Progressive federal brackets |
| Social Security | 6.2% | Up to $176,100 wage base |
| Medicare | 1.45% | Uncapped |
| State sales tax | 7% base | Local add-ons up to 2.75% |
| Property tax | 0.6%–0.7% | Among lowest in US |
| Deduction | Amount |
|---|---|
| Federal income tax | ~$10,200 |
| Tennessee state income tax | $0 |
| Social Security (6.2%) | $4,650 |
| Medicare (1.45%) | $1,088 |
| Total deductions | ~$15,938 |
| Net take-home | ~$59,062 |
| State | State Tax on $75K | Est. Net Take-Home | TN Advantage |
|---|---|---|---|
| Tennessee | $0 | ~$59,062 | — |
| Georgia | ~$4,118 | ~$54,944 | +$4,118/yr |
| North Carolina | ~$3,375 | ~$55,687 | +$3,375/yr |
| Kentucky | ~$3,000 | ~$56,062 | +$3,000/yr |
| Virginia | ~$4,425 | ~$54,637 | +$4,425/yr |
Tennessee's 7% state sales tax is among the highest base rates in the US — partially offsetting the income tax advantage. With local add-ons, effective rates reach up to 9.75% in some areas. Tennessee applies sales tax to groceries at a reduced rate of 4% (plus local add-ons). On a $50,000 car purchase, Tennessee sales tax is approximately $3,500–$4,875 depending on location. High-income earners who save $10,000–$50,000+ annually on income taxes easily outweigh the higher sales tax burden.
No. Tennessee has no state income tax on wages in 2026. Tennessee eliminated its Hall Income Tax on investment income in 2021. Tennessee residents only file a federal tax return. Tennessee funds state government through a 7% state sales tax.
On $75,000 income in Tennessee (single filer, standard deduction), federal income tax is approximately $10,200, Social Security is $4,650, and Medicare is $1,088 — total deductions of approximately $15,938. Net take-home is approximately $59,062.
Tennessee residents pay federal income tax (10%–37%), Social Security (6.2% up to $176,100), and Medicare (1.45%). They also pay Tennessee's 7% state sales tax (plus local add-ons up to 9.75%) and property taxes averaging 0.6%–0.7% annually. There is no Tennessee state income tax on wages.
On $75,000 salary, a Tennessee resident takes home approximately $59,062 vs $54,944 in Georgia — a difference of $4,118 per year. Tennessee's no income tax advantage grows significantly at higher incomes. At $150,000, Tennessee residents save approximately $8,000–$10,000 per year vs Georgia.
Tennessee's state sales tax rate is 7% — one of the highest base rates in the US. Local add-ons bring effective rates up to 9.75% in some areas. Tennessee taxes groceries at a reduced 4% rate. On a $50,000 car purchase, Tennessee sales tax is approximately $3,500–$4,875.
Yes. Tennessee is highly tax-friendly for retirees — no state income tax means pension payments, IRA withdrawals, 401k distributions, and Social Security are all free from state income tax. Combined with low property taxes (0.6%–0.7%) and no estate tax, Tennessee is consistently ranked among the best states for retirees.
Educational estimates only. Not IRS advice.