tennessee paycheck calculator
Looking to figure out your take-home pay in Tennessee? You're in the right place. Our free calculator helps Tennessee residents understand exactly what they'll earn after taxes. Tennessee is one of the few states with no state income tax, which means more money stays in your pocket.
About the tennessee paycheck calculator
Tennessee charges no state income tax on wages - your paycheck shows only federal withholding and FICA. Nashville has emerged as a healthcare capital, hosting HCA Healthcare and numerous medical systems alongside its famous music industry. Memphis serves as a logistics powerhouse anchored by FedEx headquarters. The no-tax advantage delivers real financial benefit, especially for higher earners. Nashville housing has appreciated substantially as the city's popularity grows, with median prices now often exceeding $400,000. Memphis, Chattanooga, and Knoxville maintain better affordability. High sales tax (9-10% in many areas) offsets some income tax savings on purchases, but the overall financial picture remains favorable compared to income-taxed states.
Tax Information
Tennessee charges no state income tax on wages. Federal income tax (10-37% progressive) represents your primary withholding. Social Security takes 6.2% of wages up to $168,600. Medicare requires 1.45% of all income, with high earners paying an additional 0.9% above $200,000.
Understanding Your Tennessee Paycheck
When you get paid in Tennessee, several deductions come out before you see your take-home pay. Our tool breaks down all these deductions clearly. Here's what it calculates:
- Federal Income Tax: This depends on your income and filing status, following the IRS tax brackets that apply nationwide
- State Income Tax: Tennessee doesn't charge state income tax
- Social Security Tax: 6.2% of your gross wages (capped at the annual wage base)
- Medicare Tax: 1.45% of all gross wages
- Additional Medicare Tax: 0.9% on earnings above $200,000 for single filers
How to Use This Calculator
It's pretty straightforward. Just follow these steps:
- Enter your gross pay (what you earn before any deductions)
- Pick how often you get paid - weekly, bi-weekly, semi-monthly, monthly, or annually
- Select Tennessee as your state
- Choose your filing status (single, married, etc.)
- Hit calculate and see your results
You'll see a detailed breakdown showing exactly where your money goes. Get instant, accurate results with our free tool.
How Tennessee Compares
Tax Comparison
Tennessee is one of the lucky states with no income tax. That's a big deal - you keep more of what you earn compared to states like California (up to 13.3%) or New York (up to 8.82%). But remember, Tennessee still needs revenue, so you might see higher property taxes or sales taxes to compensate.
| State | Income Tax Rate | Comparison |
|---|---|---|
| Tennessee | No state income tax | Your State |
| Wyoming | No state income tax | No income tax |
| South Dakota | No state income tax | No income tax |
| New Hampshire | No state income tax | No income tax |
| Nevada | No state income tax | No income tax |
| Washington | No state income tax | No income tax |
What Makes Tennessee Different?
Not having state income tax is Tennessee's biggest advantage for workers. Your paycheck goes further here than in high-tax states. This can make a real difference, especially for higher earners who would otherwise pay thousands in state taxes elsewhere.
Why Use Our Tennessee Paycheck Calculator?
- Accurate for Tennessee: Uses current tax rates specific to your state
- Easy to understand: No confusing jargon or complicated forms
- Detailed breakdown: See exactly how much goes to each tax
- Free to use: No signup required, no hidden fees
- Updated regularly: We keep up with tax law changes so you don't have to
Living and Working in Tennessee
Economic Overview
Job Market
Tennessee's economy balances healthcare, logistics, manufacturing, and music industries. Nashville serves as healthcare hub - HCA Healthcare and other major systems provide extensive employment. FedEx headquarters drives Memphis logistics sector. Automotive manufacturing significant. Tourism supports employment. A $70,000 position delivers lifestyle comparable to $90,000-95,000 in high-tax states after accounting for no income tax.
Cost of Living
Tennessee costs vary by region. Nashville housing has appreciated substantially - median prices often exceed $400,000 in desirable areas. Memphis, Chattanooga, and Knoxville offer better value with homes typically $200,000-350,000. Smaller cities provide exceptional affordability. Sales tax reaches 9-10% in many areas. Property taxes moderate. The no-income-tax advantage creates real financial benefit despite high sales tax.
Frequently Asked Questions
How accurate is this calculator?
Our calculator is very accurate for most people. We use the current federal and Tennessee state tax rates. However, everyone's situation is unique - things like additional withholdings, pre-tax deductions (401k, health insurance), or local taxes can affect your actual paycheck. Think of this as a solid estimate rather than an exact figure.
Why is my actual paycheck different?
A few reasons. Your employer might withhold extra for benefits, retirement contributions, or you might have requested additional withholding. Some Tennessee localities also have their own taxes. Check your pay stub for the full breakdown.
Should I adjust my withholding?
That depends. If you're getting a huge refund every year, you're basically giving the government an interest-free loan. If you owe a lot at tax time, you might want to withhold more. The sweet spot is owing or getting back a small amount. Use this calculator to see if your current withholding makes sense.
Does no state income tax mean I pay less overall?
Not necessarily. Tennessee funds its government through other means - often higher property taxes, sales taxes, or other fees. You might save on income tax but pay more elsewhere. Still, for many people, especially high earners, the lack of income tax is a significant benefit.