Tennessee Tax & Salary Calculators (2026)
Everything you need to work out pay and tax as a Tennessee resident in 2026, in one place. Tennessee is one of the states with no personal income tax, so residents keep everything left after federal income tax and FICA. Federal income tax and FICA (6.2% Social Security up to $184,500 plus 1.45% Medicare) apply on top, identically in every state — the Tennessee layer is what makes your net pay different from a neighbour's.
Tennessee fully eliminated its Hall tax on investment income in 2021, becoming a true no-income-tax state. Cost of living in Tennessee sits at index 91 (US average = 100), median household income is $67,631, and a one-bedroom apartment in Nashville rents for around $1,700 per month. The local economy leans on music, healthcare, and automotive.
Tennessee calculators
Tennessee tax facts beyond income tax (2026)
| State sales tax | 7% |
| Avg. effective property tax | 0.66% of home value |
| Minimum wage 2026 | $7.25 / hour |
| Top state income tax rate | 0% (no income tax) |
| Reciprocity agreements | None |
Tennessee charges a 7% state sales tax, homeowners pay an average effective property tax of 0.66% of market value, and the minimum wage in force during 2026 is $7.25 an hour. Local rates lift combined sales tax to about 9.55%, the highest average in the US.
Tennessee adds no state-mandated employee payroll deduction beyond federal FICA, so your gross-to-net gap comes only from federal tax.
With no state income tax, Social Security, pensions, 401(k) and IRA withdrawals are all free of state tax here.
Commuting and remote work across Tennessee lines
Tennessee has no income-tax reciprocity agreements, so if you live here and work across a state line you generally file a nonresident return in the work state and claim a credit at home to avoid double taxation.
If you work remotely for an out-of-state employer, the state where you physically sit normally has the first claim on your wages, while your employer may still be required to register for Tennessee withholding. Keep a day-count record whenever you split the year between Tennessee and Kentucky.
Tennessee vs Kentucky: $75,000 salary compared
| Measure | Tennessee | Kentucky |
|---|---|---|
| Annual take-home | $61,593 | $58,723 |
| Effective tax rate | 17.9% | 21.7% |
| Cost-of-living index | 91 | 91 |
| Property tax rate | 0.66% | 0.83% |
| State sales tax | 7% | 6% |
The paycheck difference is $2,869 a year on a $75,000 salary, but the full picture depends on housing: a one-bedroom in Nashville runs about $1,700 a month, and property and sales taxes shift the balance again. See the Kentucky hub for the mirror view.