The formulas
- Tennessee income tax on wages = $0
How it works
Tax year: 2026.
Tennessee does not tax wages, and the Hall income tax on interest and dividends was fully repealed for tax years beginning on or after January 1, 2021.
Businesses pay the franchise and excise taxes.
Local taxes: Tennessee cities and counties do not tax income.
Federal income tax, Social Security and Medicare still apply; see the federal income tax and FICA calculators.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Does Tennessee have a state income tax?
No. Tennessee does not tax wages, and the Hall income tax on interest and dividends was fully repealed for tax years beginning on or after January 1, 2021.
Does Tennessee tax investment income?
No. The Hall income tax on interest and dividends was repealed from the 2021 tax year.
Do I still pay federal tax living in Tennessee?
Yes. Federal income tax, Social Security and Medicare apply wherever you live.
Sources
- Tennessee Department of Revenue, Hall income tax
- Tennessee Department of Revenue, HIT-3: Hall income tax repealed beginning January 1, 2021
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