Tennessee has no tax on wage income, the 2nd highest combined sales tax (9.61%) and the federal $7.25 minimum wage as of 2026.
$5,443 a year: that is roughly what a Tennessee homeowner earning $75,000 pays in state income tax ($0), sales tax on $25,000 of purchases ($2,402), property tax on a $300,000 house ($1,560) and electricity at 900 kWh a month ($1,481).
Tennessee does not tax wages. No individual income tax on wages or salaries. A worker earning $50,000 or $100,000 owes federal income tax and FICA but no Tennessee income tax. Source: Tax Foundation, rates as of January 1, 2026.
Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Tennessee's brackets above. Open the paycheck calculator set to Tennessee to add a 401(k), change pay frequency or filing status.
| Salary | Federal tax | FICA | State tax | Take-home (year) | Per biweekly check |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $0 | $42,355 | $1,629 |
| $75,000 | $7,670 | $5,738 | $0 | $61,592 | $2,369 |
| $100,000 | $13,170 | $7,650 | $0 | $79,180 | $3,045 |
The state rate is 7.00% and local governments add 2.61% on average, for a combined 9.61%, 2nd highest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $96 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.
Tennessee follows the federal minimum of $7.25 an hour (Tennessee has no state minimum wage above the federal level, so the federal rate applies to employers covered by the Fair Labor Standards Act), which is $15,080 a year for full-time work (2,080 hours). Source: U.S. Department of Labor, July 1, 2026.
Homeowners in Tennessee paid property taxes equal to 0.52% of home value on average, the 10th lowest effective rate (median state 0.79%). On a $300,000 home that is about $1,560 a year, or $130 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.
Residential electricity averaged 13.71¢ per kWh in July 2026, the 5th lowest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $123 before fixed charges. Source: U.S. EIA, July 2026 data.
Among the 8 states it borders, Tennessee has the highest combined sales tax of its neighbors (9.61%), the lowest top income tax rate of its neighbors (0%) and the lowest electricity price of its neighbors (13.71¢).
| State | Top income tax | Sales tax | Min. wage | Property tax | Electricity |
|---|---|---|---|---|---|
| Tennessee | None | 9.61% | $7.25 | 0.52% | 13.71¢ |
| Alabama | 5% | 9.46% | $7.25 | 0.37% | 16.40¢ |
| Arkansas | 3.9% | 9.48% | $11.00 | 0.56% | 14.33¢ |
| Georgia | 5.19% | 7.56% | $7.25 | 0.79% | 16.27¢ |
| Kentucky | 3.5% | 6.00% | $7.25 | 0.74% | 13.81¢ |
| Mississippi | 4% | 7.06% | $7.25 | 0.58% | 14.54¢ |
| Missouri | 4.7% | 8.44% | $15.00 | 0.89% | 16.09¢ |
| North Carolina | 3.99% | 7.10% | $7.25 | 0.66% | 15.16¢ |
| Virginia | 5.75% | 5.77% | $12.77 | 0.78% | 17.55¢ |
Tennessee figures use statewide averages and skip credits, exemptions and local income taxes; check Tennessee revenue and labor department sites before filing or hiring.
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