Tennessee has no state income tax. Residents pay federal income tax at the standard US rates (10-37% in 2026) plus FICA taxes (6.2% Social Security on wages up to $176,100, plus 1.45% Medicare). Use the calculator above to see your exact federal tax and take-home pay.
- No state income tax - residents keep 100% of their wages from state taxation
- Federal income tax: 10-37% (2026 brackets). Standard deduction: $15,000 (single)
- FICA: 6.2% Social Security (up to $176,100) + 1.45% Medicare = 7.65% total
- Tennessee eliminated its Hall Tax on investment income effective January 1, 2021. Wages, salaries, and most income have never been taxed in Tennessee. The state relies heavily on the 7% sales tax for revenue.
How to calculate Tennessee income tax
Use the calculator above for an instant result. Here is how the calculation works step by step:
- Start with gross income - your total wages or salary before any deductions
- Subtract pre-tax deductions - 401(k) contributions, HSA, health insurance premiums paid pre-tax. This reduces both income tax and FICA
- Apply the federal standard deduction ($15,000 for single in 2026) or your itemized deductions, whichever is larger, to get federal taxable income
- Calculate federal income tax by applying the 2026 bracket rates (10-37%) to your federal taxable income
- Add FICA taxes - 6.2% Social Security (capped at $176,100) + 1.45% Medicare (uncapped) + 0.9% additional Medicare above $200,000
- Subtract post-tax deductions - Roth 401(k), union dues, etc.
Tennessee income tax brackets 2026
Tennessee has no state income tax. There are no brackets to apply - all wages are exempt from state income tax. Tennessee eliminated its Hall Tax on investment income effective January 1, 2021. Wages, salaries, and most income have never been taxed in Tennessee. The state relies heavily on the 7% sales tax for revenue.
Federal income tax brackets 2026
Federal income tax applies to all US residents regardless of state. The 2026 brackets (IR-2025-103) are:
| Taxable income (single) | Taxable income (MFJ) | Rate |
|---|---|---|
| $0 - $11,925 | $0 - $23,850 | 10% |
| $11,926 - $48,475 | $23,851 - $96,950 | 12% |
| $48,476 - $103,350 | $96,951 - $206,700 | 22% |
| $103,351 - $197,300 | $206,701 - $394,600 | 24% |
| $197,301 - $250,525 | $394,601 - $501,050 | 32% |
| $250,526 - $626,350 | $501,051 - $751,600 | 35% |
| Over $626,350 | Over $751,600 | 37% |
Federal standard deductions: Single $15,000 | MFJ $30,000 | Head of Household $22,500. The standard deduction is subtracted from gross income before applying brackets.
FICA: Social Security and Medicare (2026)
FICA taxes are separate from income tax and fund Social Security and Medicare. Employees pay:
| Tax | Rate | Wage base |
|---|---|---|
| Social Security | 6.2% | First $176,100 of wages |
| Medicare | 1.45% | All wages (no cap) |
| Additional Medicare surtax | 0.9% | Wages over $200,000 (single) / $250,000 (MFJ) |
Employers match the 6.2% Social Security and 1.45% Medicare contributions, so the total FICA contribution is 15.3% of wages up to the wage base. Self-employed individuals pay the full 15.3% (the "self-employment tax") but can deduct half as a business expense.
Source: IRS Topic No. 751 - Social Security and Medicare Withholding Rates.
Deductions and exemptions in Tennessee
Federal deductions (2026): The standard deduction is $15,000 for single filers ($30,000 MFJ). Itemize instead if your deductions (mortgage interest, state/local taxes capped at $10,000, charitable contributions, medical expenses over 7.5% of AGI) exceed the standard deduction.
Key pre-tax deductions that reduce both income tax and FICA taxable wages:
- Traditional 401(k) or 403(b): up to $23,500 in 2026 ($31,000 if age 50+)
- Health Savings Account (HSA): up to $4,300 self-only / $8,550 family in 2026
- Employer health insurance premiums (Section 125 cafeteria plan)
- Flexible Spending Account (FSA): up to $3,300 in 2026
- Traditional IRA: up to $7,000 ($8,000 if 50+), subject to income limits
How Tennessee compares to other states
Tennessee is one of nine states with no income tax - a significant financial advantage for high earners. With no state income tax, a resident earning $100,000 in Tennessee pays roughly $3,000-$10,000 less annually in state taxes compared to the median state. See our US income tax map to compare all states.
Frequently asked questions
Does Tennessee have a state income tax?
No. Tennessee has no state income tax on wages or salaries. Residents pay only federal income tax and FICA taxes. Tennessee eliminated its Hall Tax on investment income effective January 1, 2021. Wages, salaries, and most income have never been taxed in Tennessee. The state relies heavily on the 7% sales tax for revenue.
How much income tax will I pay in Tennessee on $75,000?
A single filer earning $75,000 in Tennessee in 2026 would pay approximately:
- Federal income tax: $8,114
- Social Security: $4,650
- Medicare: $1,088
- Take-home: ~$61,149 (18.5% effective rate)
Use the calculator above for your exact income, filing status, and deductions.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate applied to your last dollar of income - the highest bracket you've reached. Your effective rate is total tax divided by gross income - what you actually pay on average. Your effective rate is always lower than your marginal rate in a progressive tax system, because only income within each bracket is taxed at that rate.
Can I reduce my Tennessee income tax?
Yes. Key strategies: maximize pre-tax retirement contributions (401k, IRA), contribute to an HSA if on a high-deductible health plan, and check whether itemizing deductions exceeds your standard deduction. Pre-tax contributions reduce both income tax and FICA taxes. Contributions to a traditional IRA reduce federal taxable income but may not reduce state income tax in all states.