Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Income Before Tax
Take Home Pay
Average Tax Rate
$ = US Dollar
Income Before Tax
Federal Income Tax
State Income Tax
State Tax Credits
State Disability Insurance
State Paid Family and Medical Leave (PFML)
State Unemployment Insurance
State Worker Comp
State Transit Tax
Mental Health Services Tax
Local Income Tax
Take Home Pay
Average Tax Rate
Table of Contents
Enter your employment income into the paycheck calculator above to estimate how taxes in Tennessee, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This paycheck calculator also works as an income tax calculator for Tennessee, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about Tennessee, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Tennessee?
The state income tax rate in Tennessee is 0% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.
How many income tax brackets are there in Tennessee?
Tennessee does not have a state income tax so there are no tax brackets. However, there are still tax brackets for federal income tax. For more details, check out our detail section.
How Your Tennessee Paycheck Works
In the heart of the American South lies Tennessee, a state known for its rolling hills, soulful music, and some of the best barbecue in the nation. From the bustling city of Nashville to the historic streets of Memphis, Tennessee is a place where southern charm meets modern innovation to produce a thriving economy.
Whether you're just starting your career or have been working for years, there's no doubt that getting paid is essential to fully enjoying this beautiful state. How exactly do paychecks work in Tennessee? Let's dive in and discover what makes this state unique when it comes to paying its hardworking residents.
Compared to some of its neighbors, the Volunteer State offers a relatively low tax burden. Why is this?
First off, Tennessee is one of the few states that does not have a state income tax on wages. That's right. Zero state tax on income. There are also no local city or county income taxes either.
Interestingly, Tennessee did used to have a little bit of state income tax in the form of a tax on some types of investment income, such as interest and dividends. This tax was called the Hall income tax (named after Senator Frank Hall), and it was a small percentage of your investment earnings.
It was eliminated gradually over a period of several years, thanks to a bill signed by Governor Bill Haslam in 2016. As a result, the Hall income tax was completely gone by January 1, 2021. If you had investment income in the past, you may have paid this tax or had it withheld from your paycheck. But now, you can enjoy your investment income without worrying about this tax.
Anyway, that doesn't mean no income tax at all if you work in Tennessee. Uncle Sam still expects a share of your earnings.
This means you will only pay federal income tax on your wages, which depends on your income level, filing status, and other factors.
When you start a new job, your employer will have you fill out a Form W-4 which allows them to calculate how much federal tax to withhold from your pay. You can adjust your withholding amount by updating this form whenever your personal or financial situation changes.
Another tax that will affect your Tennessee paycheck is the FICA tax, which consists of Social Security and Medicare taxes. These are federal taxes that fund the social insurance programs for retirees and disabled people.
The Social Security tax rate is 6.2% for both employees and employers, up to a wage limit of $147,000 for 2022. On the other hand, the Medicare tax rate is 1.45% for both employees and employers, with no wage limit. If you earn more than a certain amount, you will also pay an additional 0.9% Medicare surtax.
In addition to these taxes, you might also have other things like pre-tax or post-tax withholdings from your paycheck.
Pre-tax withholdings are amounts that are taken out of your gross pay before taxes are calculated, which lowers your taxable income. This then can help reduce your taxes and saves you money. Examples of these may include health insurance premiums, retirement contributions, flexible spending accounts (FSA), and health savings accounts (HSA).
Post-tax withholdings are amounts that are taken out of your net pay after taxes are calculated. So these do not affect your tax liability but may provide other benefits.
While having no state income tax is great for your paycheck, you should also be aware of the sales tax, which is added to the price of goods and services that you buy.
The state sales tax rate in Tennessee happens to be one of the highest in the country, and local governments can also add their own on top of that. This means that rates can end up varying from 8.5% to 9.75%, depending on where you shop. So this is one way the state uses to compensate the lack of an income tax.
Although this doesn't affect your paycheck, it does affect your wallet and budgeting so it's something you should be mindful of.
More From Investomatica:
For sales tax, please visit our Tennessee Sales Tax Rates and Calculator page.
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- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This paycheck calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our paycheck calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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