How Tennessee taxes wages
No tax on wages. The Hall tax on investment income was fully repealed in 2021, and the Tennessee Constitution bans a payroll tax.
Tennessee is one of 9 states with no tax on wages, along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington, and Wyoming.
Example: $65,000 salary, single filer
On a $65,000 salary, Tennessee state income tax is $0. You still pay federal income tax and FICA (Social Security and Medicare).
Calculators for Tennessee
- Paycheck calculator
Take-home pay after federal income tax, Social Security, and Medicare, with Tennessee selected: no state income tax to withhold.
- Tips and overtime calculator
Your federal deduction for qualified tips and overtime, with Tennessee selected. The savings are federal only, since Tennessee doesn’t tax wages.
- Senior deduction calculator
A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.
- Car loan interest calculator
A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.
Does Tennessee tax tips and overtime?
Tennessee doesn’t tax wages, so tips and overtime aren’t subject to state income tax either. The federal deduction for qualified tips and overtime (Schedule 1-A) still lowers your federal income tax.
Source: Tennessee DOR: HIT-3, Hall income tax repealed. Checked . See how every state treats tips and overtime
Tennessee vs. neighboring states
Across the border in Mississippi, Arkansas, North Carolina, Missouri, Kentucky, Georgia, Alabama, and Virginia, the same $65,000 salary would owe up to $2,921 (Virginia).
| State | Est. tax on $65,000 | vs. Tennessee |
|---|---|---|
| Mississippi | $1,868 | +$1,868 |
| Arkansas | $1,945 | +$1,945 |
| North Carolina | $2,085 | +$2,085 |
| Missouri | $2,152 | +$2,152 |
| Kentucky | $2,157 | +$2,157 |
| Georgia | $2,495 | +$2,495 |
| Alabama | $2,684 | +$2,684 |
| Virginia | $2,921 | +$2,921 |
Frequently asked questions
Does Tennessee have a state income tax?
No. Tennessee doesn’t tax wages, so no state income tax is withheld from your paycheck in 2026. The Hall tax on investment income was fully repealed in 2021, and the Tennessee Constitution bans a payroll tax.
You still pay federal income tax, Social Security, and Medicare on your wages. The paycheck calculator with Tennessee selected shows your take-home pay after those.
Official source
For forms, exact brackets, and filing deadlines, go to the official Tennessee tax agency website.