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Tennessee State Income Tax Calculator

Calculate your 2026 Tennessee state income tax. See your bracket breakdown, effective rate, and how Tennessee compares to neighboring states.

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Tennessee · 2026
State Taxable Income
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Effective Rate
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State Tax
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Annual Amount After Income Tax
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Monthly Allocation After Income Tax
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Weekly Allocation After Income Tax
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The annual amount is gross income minus entered pre-tax deductions and modeled federal and state income tax. Monthly and weekly amounts divide it by 12 and 52. These allocations exclude Social Security and Medicare (FICA), local taxes, other payroll taxes, and unmodeled paycheck deductions. They do not estimate paycheck take-home or actual withholding.

Effective State Income Tax Rate vs Neighboring States

About Tennessee state taxes (Tax year 2026)

Tennessee has no state income tax on wages, salaries, or investment income. The state previously taxed interest and dividends (the Hall Tax) but fully repealed it in 2021.

Groceries are taxed at a reduced state rate of 4%. Prescription drugs are exempt.

Tennessee's lack of income tax is offset by one of the highest combined sales tax rates in the nation at 9.61%, which disproportionately affects lower-income residents.

Filing in Tennessee: returns for tax year 2026 are administered by the Tennessee Department of Revenue and are generally filed in 2027 by the federal April deadline unless Tennessee declares a state-specific extension. Tax type on this return: None. Top marginal rate: 0%. State sales-tax rate: 7%. For the most current contact info, see the Federation of Tax Administrators directory.

Tennessee — Does Tennessee have a state income tax? No. Tennessee has no income tax on wages, salaries, or investment income. The former Hall Tax on interest and dividends was fully repealed in 2021.

Tennessee — What is the sales tax in Tennessee? Tennessee has a 7% state sales tax rate. With local taxes, the average combined rate is about 9.61%, one of the highest in the nation.

Tennessee — Does Tennessee tax groceries? Tennessee taxes groceries at a reduced state rate of 4% (compared to 7% on other goods). Local taxes still apply, making the total grocery tax typically 6-7%.

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Reviewed methodology

How this page is reviewed

High YMYL · Last verified 2026-11-06

See methodology, assumptions & sources
Risk tierHigh YMYL
AuthorCalculover Editorial Team Tax education
Editorial ownerCalculover Tax & Payroll Desk State-tax methodology owner
ReviewerCalculover Editorial Review Government-source and limitation review
Last reviewed2026-11-06
Last verified2026-11-06
Data effective date2026-01-01
JurisdictionTennessee

Methodology

These pages estimate annual state income tax for the selected 2026 jurisdiction and filing status. The route's coverage panel identifies the supported income basis, deductions, credits and exclusions.

Assumptions

  • Enter the income basis and eligible pre-tax deductions requested by the calculator; gross wages, federal AGI and state AGI are not interchangeable.
  • Some methods require confirmed state facts or explicit projection assumptions. An unavailable component is not zero tax.

Limitations

  • The estimate excludes unmodeled income, adjustments, local taxes and special filing situations. Utah's indexed-credit assumptions remain provisional while final 2026 instructions are pending.
  • Annual liability differs from withholding and paycheck take-home. Confirm the current official forms and source versions for a complete return.

Sources

Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.

Tennessee Income Tax FAQs

Does Tennessee have a state income tax?

Tennessee has no general state income tax on wages or salaries. Federal and payroll taxes, local taxes, and state taxes on other income or activities are separate.

Why does Tennessee have no income tax?

Tennessee relies on other revenue sources such as sales taxes, property taxes, and in some cases natural resource taxes to fund state government.

What taxes do Tennessee residents still pay?

Tennessee residents pay federal income tax, Social Security (6.2%), and Medicare (1.45%) taxes. Local property taxes and sales taxes also apply depending on jurisdiction.

Do I save money by living in Tennessee?

State income tax savings depend on your income level. High earners can save thousands annually by living in a no-income-tax state like Tennessee compared to high-tax states like California or New York.

How does Tennessee compare to other no-income-tax states?

These nine states have no general wage income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Other income, payroll, property, sales and local taxes are separate, so a zero wage-income tax estimate does not imply zero total tax.