What is the Tennessee Income Tax Calculator?
In short
There is no state income tax in Tennessee: earned income faces federal income tax and FICA but no state income tax. The Hall tax applied only to interest and dividends — Tennessee never taxed wages or salaries. Tennessee has no income tax; it relies on one of the highest combined sales-tax rates in the US (7% state base plus local), business franchise & excise taxes and tourism.
Because Tennessee has no state income tax, this page focuses on what actually funds the state and what your federal-only tax looks like. Tennessee has no income tax; it relies on one of the highest combined sales-tax rates in the US (7% state base plus local), business franchise & excise taxes and tourism.
How to use this calculator
- 1Enter your gross annual income.
- 2Pick your filing status to size the federal tax.
- 3Tennessee is pre-selected with $0 state tax — switch states to compare against one that does tax income.
- 4Add 401(k)/HSA contributions to watch your federal tax (not state) fall.
The formula
- federal tax
- — Federal income tax from progressive brackets
- TN tax
- — Tennessee: no state income tax
- FICA
- — Social Security 6.2% + Medicare 1.45%
Worked example
The scenario
A Tennessee saver earning $75,000 in wages (single filer) plus $10,000 of stock dividends, who buys $25,000 of taxable goods a year and owns a $300,000 home.
The result
Wages leave about $61,593 after federal tax and FICA; Tennessee has never taxed wages. The $10,000 of dividends is also state-tax-free today. Under the old Hall tax at its pre-phaseout 6% rate, income above the $1,250 single exemption would have owed up to $525 a year; since tax years starting January 1, 2021, it owes nothing. Spending is the trade-off. The 7% state sales tax alone takes $1,750 of the $25,000, and local add-ons raise it further. The home, at the 0.71% median effective property tax rate (Tax Foundation, 2024), costs about $2,130 a year, a lighter property bill than in Texas or New Hampshire.
Common use cases
- Understanding how Tennessee pays for services without an income tax
- the Hall tax was phased out about 1 percentage point per year and fully repealed for tax years beginning Jan 1, 2021
- the pre-phaseout Hall rate was 6%, on investment income over $1,250 single / $2,500 joint
- Checking whether Tennessee taxes any income (it does, narrowly)
Limitations & assumptions
- Tennessee has no state income tax, so this shows federal + FICA only. Tennessee never taxed wages; its old Hall tax on interest and dividends was fully repealed effective Jan 1, 2021, so no personal income tax of any kind remains.
- Tennessee's high combined sales tax does much of the revenue work an income tax would elsewhere.
- Federal tax uses current brackets and the standard deduction unless you itemize.
- Treat the result as an estimate, not formal tax advice.
Official sources
Official publications for rules and figures this page uses. Rates and rules change, so confirm the current figures with the publisher before you rely on them:
- Tennessee Department of Revenue (tn.gov)
Frequently asked questions
Does Tennessee have a state income tax?
If Tennessee has no income tax, how does it pay for things?
Does Tennessee tax any income at all?
What's the take-home on $75,000 in Tennessee?
Is moving to Tennessee worth it for taxes?
Does Tennessee's sales tax take the place of an income tax?
What does a Tennessee minimum-wage paycheck look like?
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.