Use our Tennessee Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions to get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Tennessee Paycheck is Calculated
Your paycheck represents the amount you take home after all mandatory taxes and deductions are subtracted from your gross pay. The basic formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s how each component works:
- Gross Pay: Your total earnings before taxes or deductions.
- Federal Income Tax: Based on IRS tax brackets, filing status, and claimed dependents.
- FICA Taxes: These include Social Security and Medicare contributions.
- State Income Tax: Tennessee does not levy a state income tax on wages.
- Local Taxes: A few Tennessee localities charge small local payroll taxes.
A Guide to Tennessee State Payroll Taxes
Tennessee State Income Tax
Tennessee has no state income tax on wages or salaries. The state previously taxed investment income through the Hall Income Tax, but that tax was fully repealed as of January 1, 2021. This means your earnings from employment are not subject to any state-level income tax withholding.
| Tax Type | Rate |
|---|---|
| State Income Tax | None |
Since there’s no income tax, there are no state tax brackets, standard deductions, or personal exemptions for payroll purposes in Tennessee.
State-Specific Programs and Withholdings
Tennessee does not require employees to pay into any state disability insurance (SDI) or paid family leave programs. However, employers are responsible for contributing to state unemployment insurance (SUI) on behalf of employees. These employer-paid taxes do not reduce your paycheck.
While Tennessee’s lack of state income tax increases your take-home pay, residents may encounter higher sales and property taxes compared to other states.
Understanding Federal and FICA Taxes
Even though Tennessee has no income tax, all workers must pay federal and FICA taxes. These are consistent across the country and make up a major part of payroll deductions.
For 2025, the FICA tax rates are:
- Social Security: 6.2% of wages up to $168,600
- Medicare: 1.45% of all wages, with an additional 0.9% on income over $200,000 for single filers
Your federal income tax withholding depends on your income, filing status, dependents, and adjustments made on your W-4 form.
Local Taxes in Tennessee
Most cities and counties in Tennessee do not impose local income taxes. However, a few localities, such as those in Davidson County (Nashville) and Shelby County (Memphis), may charge small local payroll or occupational taxes. These typically range from a few dollars per month and vary by city or employer location.
Frequently Asked Questions (FAQs) About Tennessee Paychecks
What is the minimum wage in Tennessee?
Tennessee follows the federal minimum wage, which is $7.25 per hour in 2025. The state does not have its own minimum wage law.
How often are paydays in Tennessee?
Employers in Tennessee must pay employees at least once per month. Many companies pay bi-weekly or semi-monthly for convenience.
What is the Tennessee state tax rate for 2025?
There is no state income tax in Tennessee for 2025.
Are 1099 contractors subject to Tennessee taxes?
Independent contractors in Tennessee do not pay state income tax on their earnings but must still pay federal income and self-employment taxes. Contractors should make quarterly estimated payments to the IRS to stay compliant.
What are the overtime laws in Tennessee?
Tennessee follows federal overtime rules under the Fair Labor Standards Act (FLSA). Nonexempt employees earn 1.5 times their regular pay rate for any hours worked over 40 in a single workweek.
Disclaimer
The Tennessee Paycheck Calculator provides an estimate based on 2025 tax data and general assumptions. Actual results may vary depending on your income, deductions, benefits, and personal tax situation. For personalized guidance, consult a tax professional or financial advisor.