Does Tennessee have a state income tax?
No. Tennessee taxes no wages or salaries, and its Hall tax on interest and dividends was fully repealed in 2021. Its 7% state sales tax plus local rates gives it one of the highest combined sales tax rates in the country.
That makes Tennessee one of nine states — with Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington, Wyoming — where wages are free of state income tax. Your paycheck still has federal income tax withheld, plus Social Security (6.2% up to $184,500) and Medicare (1.45%, plus 0.9% on high wages).
| State income tax on wages | None |
| State sales tax rate | 7% plus local |
| Local income taxes | None |
| Take-home on $75,000 (single) | $61,593 |
Take-home pay in Tennessee: $50,000, $75,000 and $100,000
Because there is no state income tax, take-home pay in Tennessee depends only on federal income tax and FICA. These 2026 figures assume W-2 wages, the federal standard deduction and no pre-tax deductions.
| Wages | Filing status | Federal tax | FICA | Take-home | Monthly |
|---|---|---|---|---|---|
| $50,000 | Single | $3,820 | $3,825 | $42,355 | $3,530 |
| $50,000 | Married jointly | $1,780 | $3,825 | $44,395 | $3,700 |
| $75,000 | Single | $7,670 | $5,738 | $61,593 | $5,133 |
| $75,000 | Married jointly | $4,640 | $5,738 | $64,623 | $5,385 |
| $100,000 | Single | $13,170 | $7,650 | $79,180 | $6,598 |
| $100,000 | Married jointly | $7,640 | $7,650 | $84,710 | $7,059 |
Local income taxes in Tennessee
No local income taxes.
Sales tax and other Tennessee taxes
The Tennessee state sales tax rate is 7%, and local governments may add their own rates on top. Spending $30,000 a year on taxable goods would cost roughly $2,100 in state sales tax alone — a big part of how the state funds itself without an income tax.
Compare Tennessee with neighboring states
State income tax on $75,000 of wages for a single filer in Tennessee and its neighbors. Tennessee is the cheapest in its area on this salary, while Virginia would cost about $3,498 more.
| State | Type | Top rate | Tax on $75k | vs TN |
|---|---|---|---|---|
| Tennessee | No income tax | — | $0 | — |
| Kentucky | Flat | 3.5% | $2,507 | +$2,507 |
| Virginia | Graduated | 5.75% | $3,498 | +$3,498 |
| North Carolina | Flat | 3.99% | $2,484 | +$2,484 |
| Georgia | Flat | 4.99% | $2,994 | +$2,994 |
| Alabama | Graduated | 5% | $3,127 | +$3,127 |
| Mississippi | Flat | 4% | $2,268 | +$2,268 |
| Arkansas | Graduated | 3.7% | $2,296 | +$2,296 |
| Missouri | Graduated | 4.7% | $2,534 | +$2,534 |
If you live in one of these states and work in another, you generally file a non-resident return in the work state and claim a credit at home for the tax paid.
Moving to Tennessee?
Becoming a Tennessee resident ends state income tax on your wages from the day you move, but your former state can still tax income earned before the move and, in some cases, retirement or deferred compensation tied to work done there. Keep proof of your new domicile — a driver’s license, voter registration, lease or deed and where you spend your time. If you keep working remotely for an employer in a state with a “convenience of the employer” rule, such as New York, that state may still tax your wages.
See all states side by side in the state income tax calculator, or check the federal side with the federal income tax calculator and your per-check withholding in the paycheck calculator.
Sources and updates
Source: official Tennessee tax agency page, cross-checked with the Tax Foundation’s 2026 state income tax tables and 2026 state legislation. Data last reviewed November 4, 2026.
Tennessee income tax FAQ
Does Tennessee have a state income tax?
No. Tennessee taxes no wages or salaries, and its Hall tax on interest and dividends was fully repealed in 2021. Its 7% state sales tax plus local rates gives it one of the highest combined sales tax rates in the country.
How much is $75,000 after taxes in Tennessee?
About $61,593 a year ($5,133 a month) for a single filer in 2026: $7,670 of federal income tax and $5,738 of Social Security and Medicare, and $0 of state income tax. A married couple earning $75,000 keeps about $64,623.
What taxes do Tennessee residents pay instead?
Tennessee charges a 7% state sales tax plus local rates, and residents pay local property taxes. Federal income tax and FICA apply exactly as in every other state.
How much do I save in Tennessee versus neighboring states?
On $75,000 of wages a single filer saves about $2,507 compared with Kentucky, $3,498 compared with Virginia, $2,484 compared with North Carolina, $2,994 compared with Georgia, $3,127 compared with Alabama, $2,268 compared with Mississippi, $2,296 compared with Arkansas, $2,534 compared with Missouri in state income tax each year.
Will Tennessee withhold state tax from my paycheck?
No — employers in Tennessee withhold only federal income tax and FICA. If you work in another state, that state’s tax may be withheld instead.