Estimate your Tennessee state income tax plus combined federal and TN state tax for 2026. No earned income tax.
Tennessee has no tax on earned income. Tennessee fully eliminated its Hall Tax on interest and dividends in 2022. Tennessee's 7% state sales tax (among the highest nationally) compensates for the lack of income tax. Tennessee is popular with retirees from high-tax states. Use the calculator above to estimate your combined federal and Tennessee state income tax for 2026. State tax figures use a simplified rate — for precise Tennessee state tax calculations, consult the Tennessee Department of Revenue or a licensed tax professional.
Tennessee has no state income tax in 2026 — residents pay zero state income tax on wages, salary, and most investment income. Tennessee has no tax on earned income. Tennessee fully eliminated its Hall Tax on interest and dividends in 2022. Tennessee's 7% state sales tax (among the highest nationally) compensates for the lack of income tax. Tennessee is popular with retirees from high-tax states.
Tennessee does not have a state income tax standard deduction since there is no state income tax system. The federal standard deduction ($15,750 single, $31,500 MFJ in 2026) still applies to your federal return filed with the IRS.
Tennessee has no tax on earned income. Tennessee fully eliminated its Hall Tax on interest and dividends in 2022. Tennessee's 7% state sales tax (among the highest nationally) compensates for the lack of income tax. Tennessee is popular with retirees from high-tax states. State and local government funding in Tennessee comes from other sources including sales taxes, property taxes, excise taxes, and in some cases natural resource revenues. Understanding your total tax burden including these taxes gives a complete picture.
Yes — with no state income tax, Tennessee is very favorable for high earners. A person earning $200,000 saves $8,000-$20,000 per year in state income taxes compared to living in a state with a 4-10% income tax. This makes Tennessee attractive for executives, business owners, high-income professionals, and retirees relocating from high-tax states.
Use the calculator above. Enter your income and TN is pre-selected as your state. The calculator computes your 2026 federal income tax using the One Big Beautiful Bill Act brackets (10%-37%), adds your estimated Tennessee state income tax (No earned income tax simplified), and displays your total tax burden, combined effective rate, and annual take-home pay. All calculations happen instantly in your browser.