How Much Is Tennessee State Income Tax in 2026?
Tennessee has never taxed wages, and its last income tax — the Hall Tax on interest and dividends — died in 2021. The trade-off is one of America's highest sales taxes. Estimate your 2026 take-home pay after federal tax and FICA below.
State income tax
0%
2026
Standard deduction
N/A
No state income tax
$100k take-home
$79,180
Single filer
$75k take-home
$61,593
Single filer
Quick Answer: Tennessee Income Tax at a Glance
Tennessee has never taxed wages, and its last income tax — the Hall Tax on interest and dividends — died in 2021. The trade-off is one of America's highest sales taxes. Estimate your 2026 take-home pay after federal tax and FICA below.
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Why Tennessee has no income tax
Tennessee's constitution blocks a broad-based wage tax, and the Hall Tax on investment income (once 6%) was phased out completely by 2021. That makes Tennessee fully income-tax-free — a big reason for its population boom from higher-tax states. On a $75,000 salary, the state takes $0 from your paycheck.
The highest sales taxes in the country
Tennessee funds itself through consumption: a 7% state sales tax (groceries at a reduced rate) plus local add-ons up to 2.75%, putting combined rates around 9.5%–9.75% in Nashville and Memphis — among the very highest in the nation. Property taxes, on the other hand, are comparatively low. The no-income-tax math works best for higher earners who save rather than spend every dollar.
What still comes out of your paycheck
Only federal income tax (progressive brackets with the 2026 standard deduction) and FICA — Social Security at 6.2% up to the annual wage base and Medicare at 1.45%, plus the 0.9% Additional Medicare Tax on earnings above $200,000 for single filers. This calculator estimates both. Retirement income is completely untaxed at the state level.
Take-Home Pay by Income Level in Tennessee
The table below shows estimated annual take-home pay for a single filer with no credits or pre-tax contributions. It includes federal income tax, FICA, and Tennessee state income tax.
| Gross Income | Federal Tax | FICA | TN State Tax | Take-Home Pay |
|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $0 | $42,355 |
| $75,000 | $7,670 | $5,738 | $0 | $61,593 |
| $100,000 | $13,170 | $7,650 | $0 | $79,180 |
| $150,000 | $24,734 | $11,475 | $0 | $113,791 |
| $200,000 | $36,734 | $14,339 | $0 | $148,927 |
Estimated Tax Breakdown
Frequently Asked Questions
Does Tennessee have a state income tax in 2026?
No. Wages were never taxed, and the Hall Tax on interest and dividends was fully repealed as of 2021. Tennessee is completely income-tax-free.
Does Tennessee tax Social Security or retirement income?
No. With no income tax at all, Social Security, pensions, and retirement-account withdrawals are completely untaxed — one reason Tennessee attracts retirees.
How much is $75,000 after taxes in Tennessee?
A single filer earning $75,000 takes home about $61,593 per year after federal income tax and FICA — with $0 going to the state, tied for the highest take-home figure of any state at this salary.
What's the catch with Tennessee's taxes?
Sales taxes: 7% state plus up to 2.75% local — combined rates near 9.75% are the highest in the country. If you spend most of what you earn, that offsets part of the income-tax savings.
Wasn't there a Tennessee tax on investments?
That was the Hall Tax on interest and dividends, phased down from 6% and fully repealed on January 1, 2021. Since then Tennessee taxes no personal income of any kind.
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Disclaimer: This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Figures are estimates for a single filer with the 2026 standard deduction and no credits. Sources: IRS Revenue Procedure 2025-32 (federal brackets and deductions); SSA (FICA wage base); Tennessee Department of Revenue and Tax Foundation (state rates and context). Consult a qualified tax professional for advice specific to your situation.