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Tennessee Income Tax Calculator 2026

Tennessee levies no state income tax — here is what that means for your 2026 pay.

Updated for the 2026 tax year · Reconciled to the Tennessee Department of Revenue at year-end
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Why Tennessee has no income tax — and what you pay instead

Tennessee does not levy a state income tax. Wages earned by Tennessee residents are not subject to any state-level income tax, which can meaningfully raise take-home pay versus a high-tax state. You still owe federal income tax — estimate it with the Federal Income Tax Calculator — and Tennessee still raises revenue through sales tax, property tax, and other levies described below.

What to know about Tennessee tax

  • Tennessee has no state income tax — its old "Hall tax" on interest and dividends was fully phased out in 2021.
  • It has one of the highest combined sales-tax rates in the country, with a 7% state base plus local rates.
  • Groceries are taxed at a reduced state sales-tax rate rather than the full rate.

Frequently Asked Questions

No. Tennessee does not tax wage or salary income, so residents owe only federal income tax on their wages. It has one of the highest combined sales-tax rates in the country, with a 7% state base plus local rates.

No. It is an educational estimate based on published 2026 rates and is reconciled to the Tennessee Department of Revenue at year-end. Confirm anything that affects a real decision with the Tennessee Department of Revenue or a tax professional.

No. Some Tennessee localities levy their own income tax that is separate from the state figure shown here.

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Disclaimer

This calculator provides estimates for informational and educational purposes only. SmartTaxCalcs does not provide tax advice. Your actual tax liability may differ based on your specific situation, recent law changes, and circumstances not modeled here (e.g., AMT, NIIT, special credits). We strongly recommend consulting a qualified tax professional (CPA, Enrolled Agent, or tax attorney) before filing or making financial decisions.

Data source: IRS Revenue Procedure / state Departments of Revenue. Last data update: May 19, 2026.

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