Tennessee paycheck taxes at a glance
| Income tax on wages | None |
|---|---|
| Minimum wage (2026) | $7.25 an hour (Tennessee has no state minimum wage law, so the federal rate applies) |
Example: a $75,900 salary in Tennessee
The median household income in Tennessee is about $75,875 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $2,919.23 |
|---|---|
| Federal income tax | −$302.62 |
| Social Security | −$180.99 |
| Medicare | −$42.33 |
| Take-home pay | $2,393.29 |
That's $62,226 a year in take-home pay, or 18% of gross pay going to taxes.
Take-home pay by salary in Tennessee
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State payroll | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,320.00 | $34,320 | $0 | 14.2% |
| $60,000 | $1,938.08 | $50,390 | $0 | 16% |
| $80,000 | $2,504.23 | $65,110 | $0 | 18.6% |
| $100,000 | $3,045.38 | $79,180 | $0 | 20.8% |
| $150,000 | $4,376.58 | $113,791 | $0 | 24.1% |
| $200,000 | $5,727.96 | $148,927 | $0 | 25.5% |
Tennessee pay rules worth knowing
- Tennessee requires employers to pay at least twice a month, according to the U.S. Department of Labor's summary of state payday laws.
- With no state minimum wage law, tipped workers covered by federal law can be paid a cash wage of $2.13 an hour, as long as tips bring them to at least $7.25.
What’s withheld from a Tennessee paycheck
Every tax line on a Tennessee pay stub is federal: income tax based on your W-4, Social Security and Medicare. There’s no state income tax, no state disability or paid-leave premium, and no city or county income tax. The state column in the take-home table above is $0 at every salary.
Tennessee used to be a partial exception among no-income-tax states. Its Hall income tax didn’t touch wages, but it did tax interest and dividends. Laws passed in 2016 and 2017 cut the rate step by step until the tax was eliminated. Today, Tennessee taxes neither your paycheck nor your investment income.
No state minimum wage
Tennessee is one of five states without a minimum wage law of its own. Employers covered by the federal Fair Labor Standards Act must pay at least the federal $7.25 an hour, and tipped workers can be paid as little as $2.13 in cash wages if tips make up the rest.
If you’re paid hourly, choose Hourly in the calculator above. For overtime, which federal law requires after 40 hours in a workweek, the overtime calculator shows what those hours add.
Where Tennessee collects instead: sales tax
Sales tax is Tennessee’s main substitute for an income tax. The state rate is 7%, and local governments can add up to 2.75%. The Tax Foundation put the average combined rate at 9.61% at the start of 2026, the second highest in the country after Louisiana.
That changes how to think about a Tennessee paycheck. You keep more of each check than you would in a state with an income tax, but a larger share of what you spend goes back as tax at the register. A household that spends most of its income, especially on taxable goods, feels that more than one that saves a large share. The sales tax calculator shows what a given rate adds to a purchase, and the budget calculator helps you see how much of your take-home goes to spending.
Property tax
Tennessee homes are assessed at 25% of their appraised value, and the county commission sets a rate per $100 of assessed value based on the county’s budget. Low-income older and disabled homeowners and disabled veterans may qualify for state property tax relief, and a tax freeze program can lock the tax on a qualifying owner’s home at its first-year amount. The home affordability calculator helps you work property tax into a monthly budget.
Moving to Tennessee
Once your employer records your Tennessee address and work location, state income tax withholding should stop. If you earned wages in another state before moving, expect to file a part-year return there. If you work remotely for an employer based elsewhere, ask payroll which state’s rules it’s applying, because withholding usually follows where you physically work.
Estimates only. Your employer’s payroll system and your W-4 determine your actual paycheck.
Sources
- U.S. Department of Labor: State Minimum Wage Laws
- U.S. Department of Labor: Minimum Wages for Tipped Employees
- U.S. Department of Labor: State Payday Requirements
- Tennessee General Assembly: SB 47 (2016), Public Chapter 1064, Hall income tax
- Tennessee General Assembly: HB 534 (2017), IMPROVE Act, Public Chapter 181
- Tax Foundation: State and Local Sales Tax Rates, 2026
- Tennessee Comptroller: How to Figure Your Tax Bill
- Tennessee Comptroller: Property Tax Programs
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- taxfoundation.org
- IRS Publication 15-T (federal withholding)
Frequently asked questions
Does Tennessee tax interest and dividends?
Not anymore. The Hall income tax used to apply to interest and dividends. A 2016 law (Public Chapter 1064) cut it from 6% to 5% and scheduled its repeal, and the 2017 IMPROVE Act (Public Chapter 181) cut it by a percentage point a year until it was eliminated.
What's the sales tax rate in Tennessee?
The state rate is 7%, and local governments can add up to 2.75%. According to the Tax Foundation, the average combined state and local rate was 9.61% at the start of 2026, second only to Louisiana.
How is property tax figured in Tennessee?
Homes are assessed at 25% of appraised value, and the local tax rate is applied per $100 of assessed value. A $400,000 home with a $2.50 rate, for example, is assessed at $100,000 and owes $2,500.
Is there property tax help for older Tennessee homeowners?
Yes. State law provides property tax relief for low-income older and disabled homeowners and for disabled veterans or their surviving spouses. A separate tax freeze program holds the tax on a qualifying owner's home at the amount owed in the year they first qualify.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.