Tennessee payroll taxes

State income tax: Tennessee taxes no wage income (Hall income tax on interest/dividends fully phased out). No state wage withholding.
Local wage tax: None. Cities and counties do not levy employee wage income taxes.
Unemployment Insurance (UI/SUI): Employer-paid only; employees do not pay Tennessee UI from wages.
Other state programs: No statewide employee-paid disability or paid family leave payroll taxes.
FICA (federal): Social Security and Medicare—see FICA details below.
FIT (federal income tax): Withheld per IRS rules from your federal Form W-4.
Pre-tax deductions: 401(k), HSA/FSA, Section 125 benefits may reduce FIT (and sometimes FICA) but not state/local tax because none apply to wages.
Post-tax deductions: Roth 401(k), wage garnishments, union dues, charitable giving, etc.

How Your Tennessee Paycheck Works

Start with gross pay for the period (salary or hourly × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA: Social Security up to the federal wage base; Medicare on all wages; Additional Medicare for high earners.
Compute federal withholding based on IRS methods and your W-4 elections.
No state or local wage tax in Tennessee; employer separately pays UI and other employer payroll taxes.
Subtract post-tax deductions (Roth, garnishments, etc.) to arrive at net pay.

Tennessee Income unemployment tax rate — 10 Years Data

Employees do not pay Tennessee Unemployment Insurance (UI) from wages. Employers contribute on a taxable wage base at assigned new-employer or experience rates. Values below are illustrative references; confirm each year’s notice.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$7,000	~2.7%	~0.01%–10.0%
2017	0%	No	$7,000	~2.7%	~0.01%–10.0%
2018	0%	No	$7,000	~2.7%	~0.01%–10.0%
2019	0%	No	$7,000	~2.7%	~0.01%–10.0%
2020	0%	No	$7,000	~2.7%	~0.01%–10.0%
2021	0%	No	$7,000	~2.7%	~0.01%–10.0%
2022	0%	No	$7,000	~2.7%	~0.01%–10.0%
2023	0%	No	$7,000	~2.7%	~0.01%–10.0%
2024	0%	No	$7,000	~2.7%	~0.01%–10.0%
2025	0%	No	$7,000	~2.7%	~0.01%–10.0%

Tennessee salary threshold

Tennessee follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either test is not met, overtime is owed after 40 hours in a workweek.

Median Household Income — Tennessee (10 years, current dollars)

Illustrative nominal values to show trend; verify with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$48,000
2016	$50,300
2017	$52,800
2018	$55,700
2019	$58,500
2020	$60,700
2021	$64,900
2022	$68,800
2023	$71,200
2024	$73,000

Tennessee Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal annual wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Tennessee does not impose municipal or county wage income taxes on employees. Paychecks show federal withholding, FICA, pre-tax benefits, and post-tax deductions. Local governments primarily rely on sales, property, and business taxes, which are collected outside payroll and do not reduce an employee’s take-home pay through wage withholding.

Local income tax table (employee wage tax)

City/County	Local Wage Tax	Notes
Statewide (Tennessee)	None	No municipal/county percentage-of-wages tax on employees

Tennessee Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily OT rule).
Minimum wage: Tennessee tracks the federal minimum for most covered employers.
Pay frequency: Employers must maintain regular, established paydays (weekly/biweekly/semimonthly are common) and pay on time; final-pay deadlines apply at separation.
Breaks/meals: Follow federal standards; minors and certain occupations have additional protections.

Additional Tennessee forms

Federal Form W-4 — Controls federal withholding (no Tennessee state W-4 for wages).
UI Employer Registration & Rate Notice — Tennessee Department of Labor & Workforce Development account setup and SUI rate assignment.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required postings — Wage/hour, unemployment, safety, and federal notices.

FAQs — Tennessee Salary Paycheck Calculator

How do I use a Tennessee Salary Paycheck Calculator to estimate net pay?

Enter gross pay and frequency, W-4 details, and any pre-/post-tax deductions. The calculator applies FICA and federal withholding (no TN state/local wage tax) to produce per-pay and annual take-home.

Why doesn’t my Tennessee paycheck show state income tax?

Tennessee has no state individual income tax on wages. Your stub will show federal withholding and FICA, plus any benefit or court-ordered deductions.

Does any Tennessee city have a local wage tax?

No. Municipalities and counties in Tennessee do not levy wage-based income taxes on employees.

Do Tennessee employees pay unemployment insurance from wages?

No. UI is employer-funded. Employees will not see a Tennessee UI deduction on their pay stubs.

Which form controls my withholding if there’s no state tax?

Your federal Form W-4 controls federal withholding. Tennessee does not have a state W-4 for wage income.

How are bonuses and commissions taxed in Tennessee?

They’re subject to federal supplemental methods and FICA. There is no Tennessee state or local wage tax. Enter bonuses as supplemental pay in the calculator.

Can I add an extra withholding amount even without state tax?

Yes—on the federal side. Request an additional federal dollar amount per paycheck on Form W-4; preview the impact in the calculator.

How do pre-tax benefits (401(k), HSA, FSA) affect my paycheck?

Pre-tax benefits reduce federal taxable wages (and sometimes FICA), increasing take-home pay. They do not affect Tennessee state withholding because none exists for wages.

Are Roth 401(k) contributions pre-tax?

No. Roth contributions are post-tax and do not reduce payroll taxable wages today. Enter them as post-tax deductions.

How do I enter overtime and shift differentials?

Add overtime hours and premiums; the calculator increases gross pay and recomputes FICA and federal withholding accordingly.

What pay frequency should I choose?

Select your employer’s schedule (weekly, biweekly, semimonthly, monthly). The tool prorates wages and withholding per period and tracks annual caps like Social Security.

Why did my net pay change mid-year without a raise?

You may have reached the Social Security wage base; Social Security stops for the remainder of the year while Medicare continues.

How are tips treated for Tennessee payroll?

Reported tips are taxable for FIT and FICA. Include tips to avoid under-withholding at the federal level.

Does Additional Medicare tax apply in Tennessee?

Yes—federally. Employees pay an extra 0.9% above $200,000 in wages; employers do not match it. The calculator adds it automatically when applicable.

Can student employees be exempt from FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA for that job in your estimate.

How do PTO payouts get taxed?

PTO cash-outs are taxable wages subject to FIT and FICA (no TN wage tax). If paid separately, employers may use federal supplemental methods—model as supplemental wages.

What if I live in another state and work in Tennessee?

Tennessee won’t withhold state wage tax. Your resident state may require returns and could tax your income; check reciprocity/credit rules and model both scenarios.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after federal taxes, subject to federal/state limits.

How can I avoid a large balance due at year-end?

Increase federal withholding via an extra per-pay amount on W-4, adjust pre-tax benefits, or make estimated payments. Use the calculator to preview results first.

Can I compare traditional vs. Roth 401(k) effects?

Yes—run traditional (pre-tax) and Roth (post-tax) scenarios to see near-term take-home differences and long-term implications.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for already-paid checks and new rate for remaining periods—then combine to project full-year taxes and net pay.

Tennessee Salary Paycheck Calculator