What's the effective tax rate in Tennessee on a $100K single salary in 2026?

Tennessee has no state income tax (1 of 9 such US states). A $100,000 single filer pays only $13,841 federal income tax + $7,650 FICA = $21,491 total → 21.5% effective rate. This is among the lowest single-filer effective rates in the US. The calculator above shows the exact number including 401(k) + HSA deductions.

If Tennessee has no state income tax, where does state revenue come from?

Tennessee funds public services primarily through sales tax (one of the highest combined rates in the US at ~9.55% avg). The combined state-and-local tax burden lands lower than typical income-tax states for renters and modest spenders. Median Tennessee household income is $67,631.

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Tennessee Paycheck Calculator 2026 — No State Income Tax (Federal + FICA Only)

Drop your Tennessee gross salary — get annual + monthly + bi-weekly take-home, full breakdown of federal + FICA + Tennessee state tax, effective rate, and how you compare to the Tennessee median household. Tennessee has no state income tax — federal + FICA only.

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Reviewed by CalcBold Editorial · Sources: IRS Pub 15-T 2026 (projected) + SSA wage-base 2026 + Tennessee Department of Revenue — no personal income tax (Hall repealed 2021)Last verified May 13, 2026Methodology

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How much do I take home in Tennessee? — short answer first

Tennessee is one of nine US states with no personal income tax — a fact written into long-standing state policy though not constitutionally locked (unlike Florida or Washington). Tennessee historically taxed investment income via the Hall Income Tax (6% on dividends and interest), but this was fully repealed effective tax year 2021. Today, Tennessee wage earners see only federal income tax + FICA on their paycheck. Tennessee funds itself through one of the highest combined sales tax rates in the US — 7% state + up to 2.75% local pushes the average combined rate to 9.55%. Property tax is moderate (~0.66% effective). Tennessee is consistently ranked among the most retirement-friendly states for tax purposes.

The Tennessee take-home pay formula

net_pay     = gross − federal_tax − fica − state_tax − local_tax − pre_tax
federal_tax = Σ (federal_bracket × rate) on (gross − std_dev − 401k − hsa)
fica        = MIN(wages, $181K) × 6.2% + wages × 1.45% + add'l Medicare
state_tax    = 0    // Tennessee has no state income tax
local_tax    = 0    // no local payroll tax in Tennessee

The 2026 take-home calculation for Tennessee stacks four mandatory deductions: federal income tax (7-bracket progressive), FICA (Social Security capped at $181K + uncapped Medicare), no state income tax — Tennessee is one of nine states without one. Pre-tax 401(k) and HSA reduce federal taxable income; HSA additionally reduces FICA wages.

Source:Tennessee Department of Revenue — no personal income tax (Hall repealed 2021)· Tennessee Department of Revenue (or equivalent)

How Tennessee taxes payroll in 2026

Tennessee has no personal income tax on wages or salaries. Tennessee historically taxed investment income (interest and dividends) via the Hall Income Tax at 6%, but this was phased out from 2016-2021 and fully repealed effective tax year 2021 under T.C.A. §67-2-101. Since 2022, no Tennessee resident pays any state-level individual income tax on any source of income — wages, dividends, interest, capital gains, pension distributions, 401(k) withdrawals, Social Security, or Roth distributions. This makes Tennessee one of the most tax-favourable states in the US for retirees with substantial investment income. The Hall Income Tax repeal cost the state ~$300M/year in revenue; replacement revenue comes primarily from sales tax. Tennessee's 7% state sales tax plus up to 2.75% local pushes the combined rate to an average of 9.55% — one of the highest combined sales tax burdens in the US. Property tax is moderate at ~0.66% effective rate statewide — below the national average and meaningfully below neighboring states like North Carolina or Georgia. Tennessee has no local income tax anywhere in the state — Nashville, Memphis, Knoxville, and Chattanooga all fund services through property tax + sales tax + tourism fees. For wage earners, Tennessee's combination of zero income tax + moderate property tax + high sales tax means the state is most favourable to high earners who spend modestly and own property — and less favourable to low-income filers who spend a higher share of income on sales-taxed goods.

Tennessee city callouts

Nashville — Combined sales tax 9.25%; property tax ~0.74% effective; explosive tech and music industry job growth since 2018.
Memphis — Combined sales tax 9.75%; property tax ~1.26% effective (highest in TN due to lower assessments); lowest cost of living of TN major metros.
Knoxville + Chattanooga — Mid-size East Tennessee metros; combined sales tax ~9.25%; property tax ~0.65%; popular relocation targets from higher-tax Carolinas.

How to use this calculator

Enter your annual gross salary. Pre-tax, what your employer pays before any deductions.
Pick filing status. Single, married filing jointly, married filing separately, or head of household. Drives both federal and Tennessee brackets.
Add 401(k) and HSA contributions (optional). Both lower your federal taxable income; HSA also lowers FICA wages.
Read the verdict. Annual + monthly + bi-weekly take-home, federal + state + local breakdown, and effective tax rate.

Common mistakes

Confusing gross with adjusted gross. The calculator wants your gross salary — what your employer pays before any pre-tax deductions or contributions. If you enter your W-2 Box 1 (already net of 401k), the math will under-count your tax.
Forgetting that 401(k) is still subject to FICA. Traditional 401(k) reduces federal income tax but NOT Social Security + Medicare. Only HSA (through payroll) reduces both.
Ignoring multi-state implications. If you work in Tennessee but live elsewhere (or vice versa), you may owe taxes in both states with a credit between them. This calculator assumes you both live and work in Tennessee.

US payroll terminology — quick reference

Eight terms that show up on every payslip. Skim the snippet; expand the card for the longer explanation. Same terms apply across all 51 state-paycheck calculators — only the Tennessee state line in each formula changes.

Quick reference

Payroll terminology — applies to Tennessee

Gross Salary The headline number from your offer letter, before any deductions. The starting point for every paycheck calculation.: Lenders, landlords, and benefit calculations use gross. Always confirm whether a quoted figure is gross or net — the gap is typically 25-40% in the US once federal + FICA + state are stacked.
Net Take-Home Pay What lands in your bank account after federal + FICA + state + local + pre-tax deductions. The number to budget against.: For Tennessee: gross − federal − FICA (no Tennessee state income tax) − 401(k) − HSA.
FICA Federal Insurance Contributions Act — payroll tax funding Social Security (6.2% to $181K) + Medicare (1.45%, no cap). 7.65% combined.: Additional Medicare 0.9% applies above $200K single / $250K MFJ. Thresholds frozen since 2013, so an increasing share of earners hit it each year. HSA contributions (but NOT 401k) reduce FICA wages.
Source: SSA — Wage base & tax rates
Marginal Tax Rate The rate applied to your NEXT dollar of income. Drives the cost of a raise, bonus, or extra 401(k) contribution.: In Tennessee, your combined marginal rate stacks federal (12-37%) + FICA (1.45-2.35%). A six-figure earner often faces a 35-45% marginal rate.
Effective Tax Rate Total tax divided by gross income. The actual percentage of your salary that disappears to tax — always lower than marginal.: Two earners at the same gross can have different effective rates depending on pre-tax contributions. Use effective rate for affordability comparisons; use marginal for raise / bonus decisions.
Standard Deduction Fixed amount subtracted from gross before federal brackets apply. 2026: $15,750 single · $31,500 MFJ · $23,625 HoH.: Tennessee's state standard deduction (single) is $0 — applied independently before state brackets. Federal and state standard deductions stack; you do not have to itemize on one to claim the other.
Source: IRS Rev. Proc. 2024-40
Pre-Tax Deductions Amounts subtracted from gross BEFORE income tax is computed — 401(k), traditional IRA via payroll, HSA, FSA, employer health premiums.: Reduces federal taxable income dollar-for-dollar. HSA also reduces FICA wages (the 'triple advantage'). Traditional 401(k) reduces federal tax but NOT FICA — Roth 401(k) reduces neither but grows tax-free.
Tennessee (No State Tax) Tennessee is one of nine US states without a personal income tax. Federal + FICA + voluntary deductions only.: Other no-income-tax states: AK, FL, NV, NH, SD, TX, WA, WY. Most fund state government from sales tax, property tax, severance tax, or tourism (Florida + Nevada).
Source: Tennessee Department of Revenue — no personal income tax (Hall repealed 2021)

Methodology & Sources

Federal income tax + FICA: IRS Pub 15-T 2026 projected brackets + Social Security Administration 2026 wage base ($181,000) + Medicare 1.45% (no cap) + Additional Medicare 0.9% above $200K/$250K thresholds. Tennessee state income tax: Tennessee Department of Revenue — no personal income tax (Hall repealed 2021) — last verified 2026-05-13. Brackets refresh annually — most state DORs publish updates in Q4 preceding the tax year. Federal 2026 figures are projected from 2025 (Rev. Proc. 2024-40) with ~2.5% inflation adjustment; refresh against IRS October release.

Frequently asked questions

Did Tennessee really repeal all income tax?

Yes — Tennessee never taxed wages or salaries, and the Hall Income Tax on dividends and interest was fully repealed effective tax year 2021 under T.C.A. §67-2-101. Today, no Tennessee resident pays any state-level individual income tax on any source of income. Tennessee is one of the most tax-free states for retirees with substantial investment income.

Why is Tennessee's sales tax so high?

Tennessee's 7% state sales tax + up to 2.75% local pushes the combined rate to ~9.55% — among the highest in the US. Tennessee uses sales tax to replace the revenue most states get from income tax. Groceries are taxed at a reduced 4% state rate (plus local); prescription drugs are exempt. For high-spending households, the sales tax burden can offset 30-50% of the no-income-tax savings.

Are there any local income taxes in Tennessee?

No — Tennessee has no local income tax at any city, county, or municipal level. Nashville, Memphis, Knoxville, and Chattanooga all fund services through property tax (~0.66% effective statewide), sales tax (~9.55% combined average), and tourism / hospitality fees. This is one of the simplest local tax structures of any state.

Is Tennessee really the best state for retirees?

For many retirees, yes. Tennessee taxes no income (wages, pensions, Social Security, 401(k), IRA, Roth all exempt), has moderate property tax (~0.66%), and has lower cost of living than Florida or Texas in mid-size cities like Chattanooga and Knoxville. The trade-off: high sales tax (9.55% combined avg) and limited public transit outside Nashville.

Want to compare Tennessee take-home pay against another state? Use the national take-home pay calculator with a flat-rate state input. To see what you'd save by changing your 401(k) contribution, drop the gross salary into the salary-to-hourly calculator. For cost-of-living adjustments when comparing jobs across states, the cost of living calculator adjusts for housing + groceries + tax differences between metros.

Frequently Asked Questions

The most common questions we get about this calculator — each answer is kept under 60 words so you can scan.

What's the effective tax rate in Tennessee on a $100K single salary in 2026?
Tennessee has no state income tax (1 of 9 such US states). A $100,000 single filer pays only $13,841 federal income tax + $7,650 FICA = $21,491 total → 21.5% effective rate. This is among the lowest single-filer effective rates in the US. The calculator above shows the exact number including 401(k) + HSA deductions.
If Tennessee has no state income tax, where does state revenue come from?
Tennessee funds public services primarily through sales tax (one of the highest combined rates in the US at ~9.55% avg). The combined state-and-local tax burden lands lower than typical income-tax states for renters and modest spenders. Median Tennessee household income is $67,631.
Did Tennessee really repeal all income tax?
Yes — Tennessee never taxed wages or salaries, and the Hall Income Tax on dividends and interest was fully repealed effective tax year 2021 under T.C.A. §67-2-101. Today, no Tennessee resident pays any state-level individual income tax on any source of income. Tennessee is one of the most tax-free states for retirees with substantial investment income.
Why is Tennessee's sales tax so high?
Tennessee's 7% state sales tax + up to 2.75% local pushes the combined rate to ~9.55% — among the highest in the US. Tennessee uses sales tax to replace the revenue most states get from income tax. Groceries are taxed at a reduced 4% state rate (plus local); prescription drugs are exempt. For high-spending households, the sales tax burden can offset 30-50% of the no-income-tax savings.
Are there any local income taxes in Tennessee?
No — Tennessee has no local income tax at any city, county, or municipal level. Nashville, Memphis, Knoxville, and Chattanooga all fund services through property tax (~0.66% effective statewide), sales tax (~9.55% combined average), and tourism / hospitality fees. This is one of the simplest local tax structures of any state.
Is Tennessee really the best state for retirees?
For many retirees, yes. Tennessee taxes no income (wages, pensions, Social Security, 401(k), IRA, Roth all exempt), has moderate property tax (~0.66%), and has lower cost of living than Florida or Texas in mid-size cities like Chattanooga and Knoxville. The trade-off: high sales tax (9.55% combined avg) and limited public transit outside Nashville.