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Tax Year 2026Updated July 22, 2026

Tennessee Paycheck Calculator 2026 - No State Income Tax

Tennessee is one of nine states with no state income tax (0% state rate). Your paycheck is only reduced by federal income tax and FICA (7.65% for Social Security and Medicare). There is no state withholding line at all, which means Tennessee workers keep more of every dollar earned compared to most other states. Use the calculator below to estimate your per-period take-home pay for 2026.

Why Tennessee Paychecks Are Bigger

With no state income tax, Tennessee residents avoid the 3%-13%+ state tax bite that workers in most other states face. The only deductions from your paycheck are at the federal level.

State Income Tax0%
Sales Tax (Combined Avg)9.61%

On a $78,000 salary (Single), a Tennessee worker takes home approximately $3,266 more per year than an identical worker in California, purely from the state income tax difference.

Tennessee makes up for the absence of income tax through other revenue sources. The state sales tax is 7.00% (9.61% combined average with local additions), one of the higher combined rates nationally. Groceries are taxed at a reduced 4.00% rate. Retirees benefit from full exemption of pension income.

Tennessee does not impose local income taxes. Local governments levy sales taxes up to 2.75% on top of the 7% state rate. Property taxes are levied at the county/city level.

How Your Tennessee Paycheck Is Calculated

  1. Gross pay: Your annual salary divided by the number of pay periods.
  2. Federal income tax: 2026 progressive brackets (10%-37%) after the federal standard deduction of $16,100 (single) or $32,200 (MFJ).
  3. Social Security: 6.2% on wages up to $184,500.
  4. Medicare: 1.45% on all wages, plus 0.9% above $200,000 (single).
  5. State income tax: $0 - Tennessee has no state income tax.

Grocery Tax in Tennessee

Tennessee charges a 4.00% tax on groceries, which is lower than the general sales tax rate of 7.00%. While this does not affect paycheck withholding, it is a notable cost-of-living factor for Tennessee residents. Most states exempt groceries from sales tax entirely.

Retirement Income in Tennessee

Tennessee fully exempts pension and retirement income from state income tax. Social Security benefits are also not taxed. This makes Tennessee favorable for retirees from an income tax perspective.

Worked Examples

Example 1: $78,000/year - Single, Monthly

Profile: $78,000 annual salary, Single filer, paid monthly (12 paychecks/year)

Gross per period: $6,500.00
Federal income tax: -$694.17
Social Security: -$403.00
Medicare: -$94.25
Tennessee state income tax: -$0.00
Net take-home pay: $5,308.58 per paycheck ($63,703/year)
Effective total tax rate: 18.33%

Example 2: $175,000/year - Head of Household, Semi-monthly

Profile: $175,000 annual salary, Head of Household filer, paid semimonthly (24 paychecks/year)

Gross per period: $7,291.67
Federal income tax: -$1,124.63
Social Security: -$452.08
Medicare: -$105.73
Tennessee state income tax: -$0.00
Net take-home pay: $5,609.23 per paycheck ($134,622/year)
Effective total tax rate: 23.07%

Example 3: $72,000/year - Married Filing Jointly, Biweekly

Profile: $72,000 annual salary, Married Filing Jointly filer, paid biweekly (26 paychecks/year)

Gross per period: $2,769.23
Federal income tax: -$164.62
Social Security: -$171.69
Medicare: -$40.15
Tennessee state income tax: -$0.00
Net take-home pay: $2,392.77 per paycheck ($62,212/year)
Effective total tax rate: 13.59%

Tennessee Tax Notes

  • No state income tax - your paycheck deductions are federal only.
  • Grocery tax: 4.00% on groceries (below the general sales tax rate).
  • Sales tax: 7.00% state rate, 9.61% combined average with local taxes.

OBBBA Deductions

The OBBBA deductions for tips and overtime apply to your federal return regardless of state. Since Tennessee has no state income tax, there is no state-level conformity issue - you already pay $0 state tax on all income.

Frequently Asked Questions

What taxes are deducted from my Tennessee paycheck?
Only federal income tax (10%-37%) and FICA (6.2% Social Security + 1.45% Medicare) are withheld. Tennessee has no state income tax, so there is no state withholding line on your pay stub.
How accurate is this paycheck calculator?
This calculator estimates take-home pay using 2026 federal and Tennessee state tax rates. It models federal income tax, FICA, and state income tax. It does not include pre-tax deductions (401(k), HSA, health insurance premiums), post-tax deductions, or state-specific payroll taxes (disability insurance, paid leave). Your actual paycheck may differ.
Why is there no state income tax on my Tennessee paycheck?
Tennessee is one of nine states that does not levy a state income tax. This means your paycheck is only reduced by federal income tax and FICA. Tennessee funds state services through other revenue sources such as sales tax and property tax.
Do I need to file a state tax return in Tennessee?
No. Since Tennessee has no individual income tax, there is no state income tax return to file. You only need to file your federal return. However, if you earned income in another state that does have income tax, you may need to file in that state.
Does Tennessee tax groceries?
Yes. Tennessee charges a 4.00% tax on groceries, which is lower than the general sales tax rate. While this does not directly affect your paycheck withholding, it does affect your overall cost of living in Tennessee.
Is my pension or retirement income taxed in Tennessee?
No. Tennessee fully exempts pension and retirement income from state income tax. Social Security benefits are also not taxed. This makes Tennessee a favorable state for retirees from an income tax perspective.
Does the OBBBA overtime/tips deduction matter in Tennessee?
The OBBBA deductions for tips and overtime apply to your federal tax return regardless of state. Since Tennessee has no state income tax, there is no state-level conformity issue. You already pay $0 state tax on all income including tips and overtime.
Did Tennessee repeal its Hall Income Tax?
Yes. Tennessee's Hall Income Tax, which taxed dividends and certain investment income, was fully repealed effective January 1, 2021. Since then, Tennessee has had no individual income tax of any kind. Wages, salaries, tips, and investment income are all free from Tennessee state income tax. Tennessee instead relies primarily on sales and use tax, with one of the highest combined sales tax rates in the country, to fund state services and is one of the most sales-tax-dependent states in the nation.