Tennessee variant. This is a Tennessee-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
Tennessee income tax (No state income tax (eliminated Hall tax in 2021)) stacks on top of federal tax. Understanding both layers is essential to estimating your total Tennessee tax bill.
Tennessee state income tax structure
Tennessee imposes no state income tax on wages, so your income tax is entirely federal. This is a major draw for high earners and retirees.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the Tennessee rate to find your true marginal tax on the next dollar earned.
About taxes and housing in Tennessee
Tennessee levies no state income tax on wages, having fully repealed its tax on interest and dividend income in 2021.
Tennessee's effective property tax rate is relatively low near 0.67%, with median home values around $320,000.
Tennessee's economy includes music and tourism in Nashville and Memphis, automotive manufacturing, and healthcare.
Worked example: state tax on $67,631
Tennessee state income tax on $67,631 is $0 - only federal income tax and FICA apply.
Quick reference
- State income tax: No state income tax (eliminated Hall tax in 2021)
- State sales tax: 7% (plus 2.55% avg local)
- Median home value: $320,000
- Median household income: $67,631
- Effective property tax rate: 0.67%
- Avg auto insurance: $1,373/yr
Frequently Asked Questions
Does Tennessee have state income tax?
No, Tennessee has no state income tax on wages.
What is the top tax rate in Tennessee?
Tennessee has no state income tax.