Why Tennessee Takes Nothing From Wages
Tennessee never taxed salaries. Its only income tax, the Hall tax, applied to interest and dividends. The legislature phased it down and the Department of Revenue confirms it was fully repealed for tax years starting January 1, 2021.
A 2014 amendment to the state constitution, Article II, Section 28, went further. It bars the state and local governments from taxing payroll or earned personal income. Changing that would take a new constitutional amendment, not just a vote in Nashville.
Tennessee also runs no state disability insurance or paid leave fund financed by employee payroll deductions.
What Comes Out of a Tennessee Paycheck
- Federal income tax on salary minus the 2026 standard deduction of $16,100 single or $32,200 joint.
- Social Security at 6.2% up to $184,500 of wages.
- Medicare at 1.45%, plus 0.9% on pay over $200,000.
- Your own choices: 401(k), health premiums and similar items set up through your employer.
Unemployment insurance in Tennessee is funded by employers, so it does not appear on your stub.
Worked Example: $58,000 in Tennessee
Single filer, no pre tax benefits:
| Line | Per year | Per month |
|---|---|---|
| Gross pay | $58,000 | $4,833.33 |
| Federal income tax | −$4,780 | −$398.33 |
| Social Security | −$3,596 | −$299.67 |
| Medicare | −$841 | −$70.08 |
| Net pay | $48,783 | $4,065.25 |
Federal taxable income is $41,900. The first $12,400 is taxed at 10% and the rest at 12%, which gives $4,780. Together the lines take 15.9% of gross pay.
Tennessee Net Pay at Different Incomes
Single filer, 2026. With no state column to show, the federal income tax is the line that grows fastest.
| Salary | Federal income tax | All deductions | Net per year | Net per month |
|---|---|---|---|---|
| $40,000 | $2,620 | $5,680 | $34,320 | $2,860 |
| $60,000 | $5,020 | $9,610 | $50,390 | $4,199.17 |
| $80,000 | $8,770 | $14,890 | $65,110 | $5,425.83 |
| $100,000 | $13,170 | $20,820 | $79,180 | $6,598.33 |
| $125,000 | $18,734 | $28,296.50 | $96,703.50 | $8,058.63 |
| $175,000 | $30,734 | $44,121.50 | $130,878.50 | $10,906.54 |
Married Couples in Tennessee
Filing jointly doubles the federal standard deduction and widens the brackets. A couple earning $90,000 between them keeps $76,675, with federal income tax of $6,440.
Social Security and Medicare do not change with marriage. Each spouse pays them on their own wages, so a couple with one earner and a couple with two earners on the same total pay see the same FICA.
Federal income tax is where the joint return helps: the 12% band runs to $100,800 of taxable income for a couple, twice the single limit.
Tennessee Paychecks by Frequency
For the $58,000 single example:
| Pay schedule | Gross per paycheck | Net per paycheck |
|---|---|---|
| Weekly (52) | $1,115.38 | $938.13 |
| Every two weeks (26) | $2,230.77 | $1,876.27 |
| Twice a month (24) | $2,416.67 | $2,032.63 |
| Monthly (12) | $4,833.33 | $4,065.25 |
Your stub may differ by a few dollars because employers withhold with the IRS percentage tables in Publication 15-T, not the annual figure.
What Is Taxed and What Is Not
- Federal tax applies to salary, bonuses, commission and overtime pay.
- No Tennessee tax applies to any of those, nor to interest and dividends since 2021.
- Pre tax 401(k) savings lower federal income tax but not Social Security or Medicare.
- Health premiums under a section 125 plan lower all three federal lines.
Tennessee raises its money through sales tax and business taxes instead, which do not show on a paycheck.
Raising Take Home Pay in Tennessee
With no state tax to trim, every lever sits on the federal side.
- Check your W-4. A refund each spring means too much was withheld all year. Updating the form moves that money into each paycheck instead.
- Use pre tax accounts. A traditional 401(k) lowers federal income tax now. A health savings account, when paid through a cafeteria plan, also skips Social Security and Medicare.
- Know the credits. The child tax credit and the earned income credit reduce federal tax directly, and the calculator leaves them out.
Because Tennessee adds nothing, a dollar saved in a 401(k) here saves only the federal rate. In a taxing state the same dollar also cuts state tax, which makes pre tax saving slightly less valuable in Tennessee than in Kentucky or Georgia.
Assumptions and Limits
- One job, no dependents, standard deduction.
- No federal credits such as the child tax credit.
- No retirement or health deductions unless you subtract them from the salary first.
Sources: Tennessee Department of Revenue (Hall income tax repeal notice HIT-3); Tennessee Constitution Article II, Section 28; IRS Rev. Proc. 2025-32; Social Security Administration. Rates for 2026.
Frequently Asked Questions
Does Tennessee have a state income tax in 2026?
No. Wages were never taxed, and the Hall tax on interest and dividends ended with tax year 2020.
What is the take home pay on $58,000 in Tennessee?
About $48,783 a year or $4,065.25 a month for a single filer in 2026.
Can Tennessee start taxing wages?
Not without changing the constitution. Article II, Section 28 has barred a tax on payroll or earned income since the 2014 vote.
Is there any state deduction on a Tennessee pay stub?
No state income tax, disability or paid leave premium is withheld from employees.
Do Tennessee residents working in Kentucky pay tax?
Usually yes. Kentucky taxes wages earned there, so check the Kentucky page if you commute north.
Why does my paycheck differ from the calculator?
Withholding tables, benefits and W-4 choices change each paycheck. The calculator shows the annual tax owed.