Estimate your take-home pay in Tennessee for 2026. Tennessee does not levy a state income tax, so your paycheck is only subject to federal income tax, Social Security, and Medicare withholdings. This can result in significantly higher take-home pay compared to states with income taxes.
Tennessee Tax Snapshot
- State Income Tax
- None
- Sales Tax (state + local avg)
- 9.55%
- Avg Property Tax Rate
- 0.64%
- Median Home Value
- $275,800
- State Minimum Wage
- $7.25/hr
Did You Know?
Tennessee has no income tax but one of the highest combined sales tax rates averaging over 9.5%.
How Tennessee Taxes Affect Your Paycheck
Since Tennessee has no state income tax, your paycheck deductions are limited to federal income tax, Social Security (6.2%), and Medicare (1.45%). This tax advantage means workers in Tennessee typically take home more of their gross pay. The state minimum wage is $7.25 per hour, and the average property tax rate is 0.64% on homes valued around $275,800.
Tennessee also levies a combined state and average local sales tax of 9.55%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.