🏛

Tennessee Income Tax Calculator

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

No State Income Tax
Quick presets:

Your Tax Inputs

$
$
State Income Tax
$0
Tennessee · 2026
State Taxable Income
Effective Rate
Marginal Rate
State Tax
Est. Take-Home
Monthly Take-Home
Weekly Take-Home
vs National Average Effective Rate (4.2%)

Effective Rate vs Neighboring States

Tennessee Tax Brackets (2026)

Federal vs Tennessee Tax Comparison

Estimate for your income and filing status. Federal uses 2026 brackets and standard deduction.

Item Federal Tennessee Total

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 The state previously taxed interest and dividends (the Hall Tax) but fully repealed it in 2021.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 9.55%, 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: 7.0%. 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 The former Hall Tax on interest and dividends was fully repealed in 2021.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 9.55%, 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%.

Reviewed methodology

How this page is reviewed

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 reviewed2026-05-14
Last verified2026-05-14
Data effective date2026-01-01
JurisdictionTennessee

Methodology

State-tax per-state pages apply the published 2026 bracket schedule, standard deduction, and filing-status rules for the listed jurisdiction. Federal AGI inputs are mapped to state taxable income before bracket math runs. Local taxes (NYC, Philadelphia, certain Ohio cities) are flagged but not embedded in the base estimate.

Assumptions

Limitations

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?

No. Tennessee is one of nine states with no individual income tax on wages or salaries. Residents pay only federal income tax.

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?

Nine states have no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Each state funds services differently, so total tax burden varies by residency.