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Tennessee has no state income tax in 2026 — making it one of nine US states where workers pay only federal income tax and FICA on their wages. Tennessee's average annual salary is approximately $58,000. On a $70,000 salary, a single Tennessee worker pays approximately $6,570 in federal income tax, $4,340 in Social Security, and $1,015 in Medicare — taking home approximately $58,075. Compared to neighboring Georgia, a Tennessee worker on the same salary keeps approximately $2,900 more per year. Tennessee funds state government through a 7% state sales tax.
Tennessee has no state wage income tax in this model (0% state withholding). Sales and property taxes are separate. Confirm with payroll.
✓ No state income tax in Tennessee
Bi-weekly take-home
$2,233.65
Annual net: $58,075
Where your pay goes
Effective rate
17.0%
Federal marginal
22.0%
| Deduction | Rate | On $70,000 Salary |
|---|---|---|
| Federal income tax | 10%–22% progressive | ~$6,570 |
| Tennessee state income tax | 0% | $0 |
| Social Security | 6.2% | $4,340 |
| Medicare | 1.45% | $1,015 |
| Est. total deductions | — | ~$13,555 |
| Est. net take-home | — | ~$58,075 |
A single filer earning $70,000 takes home about $58,075 in Tennessee and $54,864 in Virginia, a difference of $3,211 a year.
| State | State tax | Federal tax | Social Security + Medicare | Take-home per year | Per paycheck |
|---|---|---|---|---|---|
| Tennessee | $0 | $6,570 | $5,355 | $58,075 | $2,234 |
| North Carolina | $2,284 | $6,570 | $5,355 | $55,791 | $2,146 |
| Kentucky | $2,332 | $6,570 | $5,355 | $55,743 | $2,144 |
| Georgia | $2,894 | $6,570 | $5,355 | $55,181 | $2,122 |
| Alabama | $2,932 | $6,570 | $5,355 | $55,144 | $2,121 |
| Virginia | $3,211 | $6,570 | $5,355 | $54,864 | $2,110 |
Single filer, 2026 federal brackets and standard deduction, each state's 2026 brackets, standard deduction and credits, biweekly pay, no pre-tax deductions. Local income taxes (such as New York City) and state disability or paid-leave deductions are not included.
Tennessee's 7% state sales tax (up to 9.75% with local add-ons) partially offsets the income tax advantage. Tennessee taxes groceries at a reduced 4% rate. On $30,000 in annual spending, Tennessee sales tax adds approximately $2,100–$2,925. For most workers, the income tax savings significantly outweigh the higher sales tax burden — particularly at higher income levels where the no-income-tax advantage grows.
No. Tennessee has no state income tax on wages in 2026. Tennessee eliminated its Hall Income Tax on investment income in 2021. Residents only file a federal tax return. Tennessee funds state government through a 7% state sales tax.
On $70,000 salary in Tennessee, total deductions include approximately $6,570 federal income tax (single filer, standard deduction), $4,340 Social Security, and $1,015 Medicare — totaling $11,925. Net take-home is approximately $58,075 per year or $4,840 per month.
On a $70,000 salary, a single Tennessee resident takes home approximately $58,075 vs $55,181 in Georgia — a difference of about $2,890 per year. At $150,000 salary, the gap grows to about $6,900 annually.
Tennessee workers pay federal income tax (10%–37%), Social Security (6.2% up to $184,500), and Medicare (1.45%). There is no Tennessee state income tax. Tennessee also has a 7%–9.75% state sales tax on purchases.
Yes. Tennessee is excellent for high earners — no state income tax means the higher your salary, the more you save. At $200,000 of wages, a single Tennessee resident saves approximately $6,900–$10,700 per year vs Kentucky, North Carolina, Georgia or Virginia. This is a major driver of in-migration to Nashville from high-tax states.
Tennessee residents only file a federal tax return, due April 15, 2026. No Tennessee state income tax return is required. Tennessee eliminated all state income tax obligations for individuals.
Educational estimates only. Not IRS or payroll advice.