Tennessee Paycheck Calculator
Where is your money going?
Official Sources & References
This calculator uses data from the following authoritative sources. All tax rates, brackets, and thresholds are verified against official government publications:
- Tennessee Dept. of Revenue
- IRS Tax Brackets 2025
- IRS W-4 Tax Withholding Estimator
- SSA 2025 Wage Base Limit
- US Dept. of Labor - Minimum Wage
- IRS Publication 15 (Employer's Tax Guide)
This calculator is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or the IRS for guidance specific to your situation.
Tennessee State Income Tax Rates (2025)
Tennessee has no state income tax on wages or salaries. Tennessee previously taxed interest and dividend income (the "Hall Tax"), but it was fully repealed in 2021. Tennessee funds state services through sales tax with a base rate of 7% — among the highest in the US.
The minimum wage in Tennessee is $7.25/hr as of 2025. This matches the federal minimum wage of $7.25/hr since Tennessee has not set a higher state minimum.
How to Calculate Your Tennessee Paycheck
Your Tennessee take-home pay is your gross pay minus the following deductions:
This calculator also serves as a Tennessee payroll calculator, Tennessee salary calculator, Tennessee income calculator, and Tennessee take home pay calculator. Whether you search for "TN paycheck calculator" or "tennessee wage calculator," this tool gives you accurate 2025 results.
- Federal Income Tax — based on 2025 IRS brackets and your filing status (10%–37%)
- Social Security — 6.2% of wages up to $176,100 (2025 wage base)
- Medicare — 1.45% of all wages (plus 0.9% surtax on earnings over $200,000)
- Tennessee State Income Tax — 0% — Tennessee has no state income tax
- Pre-tax deductions — 401(k), HSA, health insurance premiums reduce your taxable income
Tennessee Paycheck Quick Facts (2025)
| State Income Tax | None — 0% |
| Minimum Wage | $7.25 (federal) |
| Median Household Income | $65,254 |
| Cost of Living Index | 90.9 (US avg = 100) |
| Local Taxes | No local income taxes |
| Pay Frequency Law | Semi-monthly required |
What Makes Tennessee Paychecks Unique
Tennessee uses a no state income tax. With a median household income of $65,254 and a cost of living index of 90.9 (where 100 is the national average), your paycheck's purchasing power is above the national average.
- Tennessee fully eliminated its Hall Income Tax on investment income in 2021, making it completely income-tax-free.
- Tennessee has the highest combined state and local sales tax rate in the US at 9.55% (7% state + up to 2.75% local).
- Tennessee is one of the fastest-growing states for relocating workers, partly due to zero income tax.
Example Tennessee Paycheck: $60,000 Salary
Here is what a typical bi-weekly paycheck looks like for a single filer earning $60,000/year in Tennessee:
| Line Item | Amount |
|---|---|
| Bi-Weekly Gross Pay | $2,307.69 |
| Federal Income Tax | -$204.00 |
| Social Security (6.2%) | -$143.08 |
| Medicare (1.45%) | -$33.46 |
| Tennessee State Tax | $0.00 (no state tax) |
| Net Take-Home Pay | $1,927.15 |
This means you keep about $1,927.15 of every bi-weekly paycheck, or roughly $50,105.90 per year after all taxes. Use the calculator above to get a precise estimate based on your exact salary, filing status, and deductions.
Tips to Maximize Your Tennessee Paycheck
Here are proven strategies specific to Tennessee residents to keep more of every paycheck:
- Review your W-4 annually: Life changes like marriage, children, or a home purchase can change your optimal withholding. Use the IRS Tax Withholding Estimator to fine-tune your Tennessee paycheck.
- Contribute to pre-tax retirement: Every dollar contributed to a traditional 401(k) reduces both your federal and Tennessee state tax liability. A $500/month contribution can increase your net paycheck by $100–$175/month depending on your bracket.
- Use an HSA if eligible: Health Savings Accounts offer triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. The 2025 limit is $4,300 for individuals.
- Check for Tennessee-specific credits: Many states offer credits and deductions beyond the federal ones. Check with the Tennessee Department of Revenue for credits you may be eligible for.