Tennessee Payroll · No State Income Tax · IRS Publication 15-T
Tennessee Paycheck Calculator 2025-2026
Estimate your Tennessee take-home pay for hourly or salaried work in a single form. Because Tennessee has no state income tax, your paycheck is reduced only by federal income tax withholding, Social Security, and Medicare. Uses 2025 IRS Publication 15-T rates.
Pay Details
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher Step 2 withholding schedule.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional withholding per paycheck
State Income Tax
Tennessee has no state income tax. No state tax is withheld from a Tennessee paycheck, so $0 is deducted for state income tax. The Hall tax on interest and dividends was fully repealed in 2021. Only federal income tax, Social Security, and Medicare apply.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Tennessee payroll picture, including employer unemployment taxes, the repealed Hall tax, and why nothing is withheld for state income tax? Read the Tennessee Payroll Taxes guide.
Tennessee Payroll Taxes Guide →Short Answer
This Tennessee paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), and Medicare (1.45%). Tennessee has no state income tax and no local wage tax, so nothing is withheld for state tax. For a single filer earning $20/hr working 40 hours per week paid biweekly, gross pay is $1,600 per period, federal withholding is approximately $114 under the 2025 Publication 15-T percentage method, and Tennessee net take-home is approximately $1,364. For a salaried worker earning $75,000 per year paid biweekly, gross is $2,884.62 and Tennessee net take-home is approximately $2,352 for a single filer.
Key Takeaways
- Tennessee has no state income tax on wages and no local wage tax anywhere in the state. The Hall income tax on interest and dividends was fully repealed for tax years beginning January 1, 2021, so Tennessee now taxes no personal income at all.
- Federal income tax is calculated using the IRS Publication 15-T percentage method applied to your annualized gross wages. It is not a flat percentage of each paycheck.
- Social Security is 6.2% of wages up to the 2025 wage base of $176,100. Withholding stops once cumulative wages hit this limit for the calendar year.
- Medicare is 1.45% with no wage base cap. Employers withhold an additional 0.9% surtax on wages above $200,000 regardless of filing status. Final liability thresholds on your return are $200,000 single/HOH, $250,000 MFJ, and $125,000 MFS.
- For salaried employees, pay frequency does not change total annual net pay. A $60,000 salary produces the same annual withholding regardless of whether it is paid weekly, biweekly, or monthly.
- Pre-tax deductions (401k, health insurance, FSA) reduce taxable wages and lower actual federal withholding. This calculator does not include them. Actual net pay will be higher if you have pre-tax benefits. Under OBBBA, the Dependent Care FSA limit rose from $5,000 to $7,500 for 2026; see the Child Care Tax Benefit Calculator and Dependent Care FSA vs Credit Guide for the effect on net pay plus the CDCTC and CTC stacking.
- Bonuses and other supplemental wages follow separate withholding rules under IRS Publication 15 section 7 (flat 22 percent or aggregate method). This calculator models regular wages only. For supplemental pay, use the Bonus Tax Calculator and see the Bonus Tax Withholding Guide for the full framework. RSU vest events use the same 22 percent supplemental rule under IRC §83(a) but with sell-to-cover share-count mechanics; see the RSU Tax Calculator and RSU Tax Guide for the equity-side math.
2025 Payroll Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000 in the calendar year. |
| Tennessee State Income Tax | 0% | None | No state income tax on wages. Hall tax on interest/dividends repealed for tax years beginning 2021. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Social Security Tax
Social Security is 6.2% of annualized gross wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages. For workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all gross wages. The calculator adds the 0.9% Additional Medicare Tax on annualized wages above $200,000, matching the employer withholding rule in IRS Topic 560: employers withhold the surtax once wages exceed $200,000 in a calendar year regardless of filing status. Your final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS), so married filers may reconcile the difference at filing.
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year) - line 1c.
- Add Step 4a other income; subtract Step 4b additional deductions - lines 1d-1f.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount (line 1i).
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - to get the tentative annual withholding (line 2g), then divide by pay periods (line 2h).
- Subtract Step 3 dependent credits divided by pay periods (line 3c).
- Add Step 4c extra withholding per period (line 4b).
No State Income Tax in Tennessee
Tennessee is one of nine states with no state income tax on wages (along with Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, and New Hampshire). No state income tax is withheld from a Tennessee paycheck, so this calculator deducts $0 for state tax. Tennessee also has no county or municipal wage income tax, so a worker in Nashville, Memphis, Knoxville, or Chattanooga sees the same short deduction list: federal income tax, Social Security, and Medicare.
Until recently Tennessee did tax one narrow slice of personal income: the Hall income tax, a 6% levy on interest and dividend income (not wages). The legislature phased it down 1% per year and fully repealed it for tax years beginning January 1, 2021. The Tennessee Department of Revenue now lists the Hall income tax among its archived taxes. As a result, Tennessee taxes no personal income at all today, whether wages, salaries, or investment income. Tennessee funds its government mainly through sales and use tax and business taxes rather than a personal income tax.
Real-World Paycheck Scenarios
Scenario 1: Hourly Worker, Single Filer, Tennessee (No State Tax)
Maria earns $22 per hour working 40 hours per week at a warehouse in Memphis, Tennessee. She is paid biweekly and files as single with a standard W-4. Her biweekly gross is $22 × 40 × 2 = $1,760.
Annualized gross is $45,760. Worksheet 1A subtracts the $8,600 line 1g allowance (W-4 Step 2 box not checked), giving an Adjusted Annual Wage Amount of $37,160. The STANDARD single schedule applies $1,192.50 plus 12% of the amount over $18,325 ($18,835 × 12% = $2,260.20), for a tentative annual withholding of $3,452.70, divided by 26 periods = $132.80. Effective federal withholding rate on gross: approximately 7.5%.
Scenario 2: Why a Tennessee Paycheck Beats California at the Same Salary
To show the Tennessee advantage, take David, a software engineer earning $90,000 per year, paid biweekly, married filing jointly. In Tennessee his paycheck has no state income tax line at all. The same job in San Francisco, California adds a state income tax deduction (this example uses an approximate 6% flat rate for illustration; actual California withholding uses graduated brackets through the DE 4 form plus the SDI program). Because Tennessee keeps the $207.69 state line in his pocket, David's Tennessee take-home would be about $2,938 biweekly versus roughly $2,730 in California, on the same gross of $90,000 ÷ 26 = $3,461.54.
Federal withholding detail (MFJ): Annualized gross $90,000 minus the $12,900 line 1g allowance (W-4 Step 2 box not checked) = $77,100 Adjusted Annual Wage Amount. The STANDARD MFJ schedule applies $2,385.00 plus 12% of the amount over $40,950 ($36,150 × 12% = $4,338.00), for a tentative annual withholding of $6,723.00 ÷ 26 = $258.58. In Tennessee, with no state income tax, David keeps the full $2,938.15 biweekly. The California estimate uses a flat 6% for illustration only; actual state withholding will differ. For the precise graduated California withholding plus 1.2% SDI, use the California Paycheck Calculator.
Practitioner Insight
The most common paycheck withholding mistake we see involves dual-income households. Each spouse earns a salary, each W-4 is filed independently, and neither employer knows about the other income. The result: each employer withholds at the married rate assuming that salary is the only income, and the combined household ends up in a higher bracket than either employer anticipated. Because Tennessee has no state income tax to soften the surprise, the entire adjustment lands on the federal return. The solution is to complete the Multiple Jobs Worksheet on Form W-4 and resubmit. It takes 15 minutes and prevents a February tax bill.
We also see workers move to Tennessee from an income-tax state and assume the higher take-home means they are under-withheld. They are not: the missing line is state tax that Tennessee simply does not levy. What does change is that there is no state refund to fall back on, so getting the federal W-4 right matters more, not less. A worker going from 20 to 40 hours per week does not simply double their net pay either, because more annualized wages push the additional earnings into a higher federal bracket, raising per-hour withholding.
A third situation worth flagging: employees who claim exempt on their W-4 because they owed no tax last year. If income increases mid-year through a promotion or a second job, the exempt election stops all federal withholding, and in Tennessee there is no state withholding to cushion it. They can owe a substantial amount at filing and may face the underpayment penalty. Claiming exempt requires meeting both the prior-year no-tax-owed and current-year same-expectation tests. We flag this during any W-4 review with a new client.
When This Calculator Gives a Less Accurate Estimate
- Pre-tax deductions not entered: A 401(k) contribution of $300 per biweekly period reduces taxable wages by $300. Federal withholding is calculated on the lower amount. This calculator does not include pre-tax deductions; actual net pay is typically higher than the estimate.
- Dual-income households: Each employer withholds independently based only on wages it pays. If both spouses earn income and each W-4 uses independent single-job elections, combined federal withholding is often insufficient. Complete the Multiple Jobs Worksheet on Form W-4 or use the IRS withholding estimator at irs.gov.
- Hourly workers with variable hours: This calculator uses consistent weekly hours across all periods. Workers with overtime, irregular hours, or seasonal variation will see different actual paychecks. Overtime premium pay may also be treated as supplemental wages by some payroll systems.
- Working across state lines: This calculator assumes Tennessee-based employment with no state income tax. If you live in Tennessee but work for an employer in a neighboring state with income tax, that state may require nonresident withholding. Tennessee itself withholds no state income tax from any paycheck.
- Bonuses and supplemental wages: Bonuses are typically withheld at the 22% supplemental rate (below $1 million) or at the aggregate method rate. This calculator covers regular wages only.
Frequently Asked Questions
Does Tennessee have a state income tax?
No. Tennessee is one of nine states with no state income tax on wages. Tennessee previously taxed only interest and dividend income through the Hall income tax, and that tax was fully repealed for tax years beginning January 1, 2021, so Tennessee now taxes no personal income at all. A Tennessee paycheck has federal income tax withholding, Social Security (6.2%), and Medicare (1.45%) deducted, but no state income tax. That is why take-home pay in Tennessee is higher than in a state like California or New York at the same gross salary.
How is take-home pay calculated in Tennessee?
In Tennessee, take-home pay equals gross pay minus federal income tax withholding, Social Security tax (6.2%), and Medicare tax (1.45%). There is no state income tax to subtract and no local wage tax. Federal withholding is calculated using IRS Publication 15-T based on your W-4 filing status and annualized wages. Social Security stops once cumulative wages reach $176,100 for 2025. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status. Pre-tax benefit deductions such as 401(k) contributions and health insurance reduce taxable gross wages and are not included in this calculator.
What is the difference between hourly and salary paycheck calculations?
For hourly employees, gross pay per period equals the hourly rate multiplied by hours worked in that period. For salaried employees, gross pay per period equals annual salary divided by pay periods per year. The federal withholding method is the same for both: IRS Publication 15-T annualizes the per-period gross, applies the graduated tables for the W-4 filing status, then divides back by pay periods. FICA taxes apply at the same rates regardless of whether the worker is hourly or salaried. To convert between the two formats, use the Salary to Hourly Calculator.
Did Tennessee ever have an income tax?
Tennessee never taxed wages or salaries. It did tax interest and dividend income through the Hall income tax, historically at 6%. The legislature reduced that rate by 1 percentage point per year and repealed it entirely for tax years beginning January 1, 2021. The Tennessee Department of Revenue now lists the Hall income tax among its archived taxes. Since 2021, Tennessee has taxed no form of personal income, so both wage earners and retirees living on investment income owe no Tennessee income tax.
Does pay frequency affect my annual take-home pay?
For a fixed annual salary, pay frequency does not change total annual net pay. A $60,000 salary paid biweekly produces the same annual withholding as the same salary paid semi-monthly or monthly. Individual paychecks are smaller or larger based on frequency, but annual totals are consistent. For hourly workers, total annual pay depends on actual hours worked each period, not just the frequency.
What is the Social Security wage base for 2025?
The Social Security wage base for 2025 is $176,100. Social Security tax at 6.2% applies to wages up to this amount. Withholding stops once cumulative wages for the year exceed $176,100. Medicare has no wage base limit. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status; final liability thresholds are $250,000 for married filing jointly and $125,000 for married filing separately.
What Tennessee employer payroll taxes are not deducted from my paycheck?
Tennessee employers pay state unemployment insurance premiums to the Tennessee Department of Labor and Workforce Development on the first $7,000 of each employee's wages, plus federal unemployment tax (FUTA), but these are employer-paid and are not withheld from employee paychecks. Tennessee has no state disability insurance or paid-leave payroll deduction and no local wage tax. The only payroll taxes withheld from a Tennessee employee paycheck are federal income tax, Social Security, and Medicare.
How does my W-4 affect my paycheck withholding?
Your W-4 filing status determines which Publication 15-T withholding table applies. Checking the Step 2 box (multiple jobs or a working spouse) switches to the higher Step 2 Checkbox schedule and removes the $8,600 or $12,900 line 1g allowance. Step 3 dependent credits reduce annual tentative withholding before it is divided by pay periods. Step 4a additional income increases the annualized base. Step 4b deductions reduce it. Step 4c requests extra withholding per period. FICA taxes are not affected by W-4 elections. A new W-4 takes effect on the first payroll period processed after you submit it to your employer.
Why does my actual paycheck differ from this estimate?
This calculator estimates standard federal withholding plus FICA for a Tennessee employee, with no state income tax. Actual paychecks also reflect pre-tax deductions (health insurance, 401k, FSA), post-tax deductions (Roth 401k, garnishments), year-to-date cumulative Social Security tracking, and employer-specific payroll adjustments. The calculator assumes consistent pay each period. Results will differ if your employer uses the aggregate method for supplemental wages or if W-4 changes were applied mid-year.
Do overtime wages affect my tax rate?
Overtime wages increase your annualized gross, which may push a portion of income into a higher federal bracket. Per-period federal withholding is recalculated using the higher annualized wages when overtime is paid. Social Security and Medicare apply at flat rates on all wages. Under the One Big Beautiful Bill Act, qualifying overtime premium pay may be deductible for federal income tax purposes for TY 2025 through TY 2028. This deduction is claimed on your federal return, not reflected in paycheck withholding.
What pre-tax deductions reduce paycheck withholding?
Traditional 401(k) and 403(b) contributions, employer-sponsored health insurance premiums under a Section 125 plan, FSA contributions, and HSA payroll deductions reduce gross wages subject to federal income tax withholding. They do not generally reduce Social Security or Medicare taxes. A worker contributing $500 per biweekly period to a 401(k) reduces per-period taxable wages by $500, lowering federal withholding on that amount. This calculator does not include pre-tax deductions; actual net pay will be higher if they apply.
What To Do Next
If your paycheck estimate looks lower than expected, check whether pre-tax benefit deductions (401k, health insurance) are reducing your taxable wages. Actual net pay including pre-tax deductions will be higher than this estimate. To understand how your federal withholding connects to year-end tax liability, see our How Payroll Taxes Work guide.
For hourly workers who also receive overtime, the Hourly Paycheck Calculator lets you model specific hours and frequencies. For salaried employees who want to see detailed annual projections, use the Paycheck Calculator. To understand all the line items on your pay stub, see our How to Read a Pay Stub guide. For the full state picture, including employer unemployment taxes, read the Tennessee Payroll Taxes guide.
If you have self-employment income in addition to wages, the 1099 Tax Calculator estimates your full federal tax burden including self-employment tax. If you need to estimate quarterly payments on that income, use the Quarterly Tax Calculator.
Sources & Editorial Disclosure
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- IRS Topic 560, Additional Medicare Tax
- Social Security Administration, 2025 Wage Base ($176,100)
- Tennessee Department of Revenue, Taxes (Hall income tax listed among archived taxes; no personal income tax on wages)
- Tennessee Department of Labor and Workforce Development, UI Tax Rates (employer-funded unemployment, $7,000 taxable wage base)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS. For informational purposes only.