Tennessee Paycheck Calculator

Tennessee Income Tax Rate

Tennessee does not tax wage and salary income. Your paycheck’s statutory layers are federal income tax and FICA, plus any pre-tax and post-tax deductions you elect. Payroll starts with gross pay, subtracts pre-tax benefits traditional 401(k), Section 125 health premiums, HSA/FSA, and commuter plans then calculates federal withholding using your Form W-4 and pay frequency. Bonuses and commissions follow federal supplemental methods. Because Tennessee has no state or municipal wage tax, your take-home is most affected by federal brackets, Social Security/Medicare thresholds, and your benefits mix. The table confirms a 0% Tennessee wage income tax across the last decade.

Tennessee Median Household Income

Tennessee’s median household income has climbed steadily, supported by growth in healthcare, logistics, advanced manufacturing, tourism, music/entertainment, higher education, and professional services especially in Nashville, Knoxville, Chattanooga, Memphis, and growing suburban corridors. After pandemic volatility, nominal gains resumed as labor markets tightened. The figures below are directional, nominal benchmarks for budgeting or offer comparisons. For purchasing power, compare “real” (inflation-adjusted) dollars and consider local cost differences housing, transportation, childcare, and insurance vary widely by county. Household size and employer benefits (health coverage, retirement match, HSA contributions) meaningfully shape take-home value statewide.

Tennessee Federal Insurance Contributions Act (FICA)

FICA applies uniformly in Tennessee. Employees pay 6.2% Social Security on wages up to the annual federal wage base (employer matched) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match that surtax. Traditional 401(k) reduces income-tax wages but not FICA; Section 125 health premiums typically reduce both income-tax and FICA wages. Tennessee pay stubs usually show Social Security, Medicare, federal withholding, pre-/post-tax deductions, and year-to-date totals helpful for checking accuracy after raises or benefit changes.

Tennessee Number of Cities with Local Income Taxes

Tennessee municipalities do not levy employee-paid local wage income taxes. Withholding generally includes federal income tax and FICA only; local business taxes do not reduce employees’ paychecks directly.

How Your Tennessee Paycheck Works

Your paycheck starts with gross wages for the period. Payroll subtracts pre-tax benefits traditional 401(k), HSA/FSA, Section 125 health premiums, and eligible commuter benefits to reach taxable wages. Withholding then includes federal income tax (W-4) and FICA (Social Security and Medicare). With no state or city wage tax, your net pay depends heavily on federal brackets, FICA thresholds, and benefit strategy. Post-tax items Roth 401(k), garnishments, union dues, charitable gifts come out after taxes and don’t reduce taxable wages. Pay frequency (weekly, biweekly, semimonthly, monthly) changes cash-flow timing but not your annual tax liability.

Tennessee Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Tennessee follows FLSA most non-exempt employees earn 1.5× their regular rate for hours worked over 40 in a workweek; exemptions apply based on duties and salary thresholds.
Pay frequency: Employers must maintain regular, published paydays and pay on consistent intervals; biweekly or semimonthly schedules are common. Rules also cover timely final pay and itemized wage statements review employer policy for specifics.

Tennessee FAQs

How do I use the Tennessee Paycheck Calculator?

Enter gross pay, schedule, W-4 details, and benefits to estimate federal withholding, FICA, deductions, and net pay.

Does Tennessee tax wage income?

No. Tennessee does not impose a state income tax on wages.

Do any Tennessee cities tax employee wages?

No. Cities and counties do not levy percent-of-wages income taxes on employees.

What taxes appear on a Tennessee pay stub?

Federal income tax, Social Security, Medicare, plus pre-/post-tax deductions no state or city wage tax lines.

How are bonuses withheld in Tennessee?

Under federal rules, employers may use percentage or aggregate methods; no additional state wage tax applies.

Do 401(k) and HSA contributions reduce my taxes?

They reduce income-tax wages and can lower FICA (for Section 125 health premiums), increasing take-home pay.

Are tips taxable in Tennessee?

Yes. Reported tips are subject to federal income tax and FICA and must be included in payroll.

How often must I be paid in Tennessee?

Employers pay on regular, published schedules commonly biweekly or semimonthly subject to wage-payment rules.

Why did my withholding change midyear?

Updated W-4, raises, overtime, or benefit elections can shift brackets and per-check withholding.

Which benefits can reduce FICA?

Section 125 health premiums typically reduce FICA; traditional 401(k) does not. HSA via cafeteria plan may reduce FICA.

Does remote work in another state affect my taxes?

Yes. Wages earned physically in another state may be taxed there; confirm with payroll for proper sourcing.