Tennessee Income Tax Calculator
Tennessee has no state income tax. Estimate your federal income tax as a Tennessee resident for 2025.
Tennessee State Income Tax Overview
Tennessee eliminated its income tax on wages and salaries and fully repealed its tax on investment income — the Hall Income Tax — as of January 1, 2021. Tennessee now has no state income tax of any kind on personal income. The state funds its government primarily through a 7% statewide sales tax, one of the highest base rates in the country, with local additions bringing combined rates as high as 9.75% in some areas. Tennessee has no estate or inheritance tax. Residents owe federal income tax on all taxable income, but the absence of a state income tax is a significant benefit, particularly for high earners and retirees.
Tennessee Has No State Income Tax
Tennessee has no state income tax. The former Hall Income Tax on dividends and interest was fully repealed in 2021.
As a Tennessee resident, your state income tax is $0. The calculator below estimates your federal income tax, which applies to all U.S. residents regardless of state.
Enter Your Tax Information
Frequently Asked Questions — Tennessee Income Tax
Does Tennessee have a state income tax?
No. Tennessee does not impose a broad-based state income tax on wages, salaries, or most personal income. Tennessee has no state income tax. The former Hall Income Tax on dividends and interest was fully repealed in 2021.
Do I still owe federal income tax as a Tennessee resident?
Yes. Federal income tax applies to all U.S. residents regardless of state. Tennessee residents pay the same federal tax brackets as everyone else — only your state income tax is $0.
What taxes do Tennessee residents pay instead of income tax?
Tennessee eliminated its income tax on wages and salaries and fully repealed its tax on investment income — the Hall Income Tax — as of January 1, 2021. Tennessee now has no state income tax of any kind on personal income. The state funds its government primarily through a 7% statewide sales tax, one of the highest base rates in the country, with l...
Do I need to file a Tennessee state tax return?
Tennessee does not require a personal income tax return for most residents. You must still file a federal return with the IRS. Check the Tennessee Department of Revenue for any state-specific obligations that may apply.
Understanding Your Tennessee Tax Estimate
Your results show both your estimated federal income tax and your estimated Tennessee state income tax as a combined picture. Here is how to read them and what to do next.
Federal vs. State Tax: Two Separate Bills
Federal income tax is owed to the IRS and is the same rate schedule for all U.S. residents regardless of where you live. Tennessee state income tax is a separate obligation paid to the Tennessee Department of Revenue. You file two separate returns — one federal (Form 1040) and one state — though they are often prepared together using tax software.
How the Estimate Is Calculated
This calculator applies the 2025 federal tax brackets to your taxable income (gross income minus the standard or itemized deduction), then applies Tennessee's published state brackets to estimate your state liability. The result is a planning estimate — not a filed return. It does not account for all credits, deductions, or individual circumstances that could change your actual bill.
Marginal Rate vs. Effective Rate
Your marginal rate is the rate on your last dollar of income — it is the highest bracket you reach, not what you pay on all income. Your effective rate is your total tax divided by gross income, and is almost always meaningfully lower. For example, a single filer earning $75,000 may be in the 22% federal bracket but pay an effective federal rate of only 14-15%. The same principle applies to Tennessee state brackets.
3 Ways to Reduce Your Tennessee Tax Bill
- Maximize pre-tax retirement contributions. Traditional 401(k) and IRA contributions reduce your federal taxable income. Many states, including Tennessee, also exclude these contributions from state taxable income, reducing both bills simultaneously.
- Claim all applicable deductions and credits. Many states offer credits for property taxes, dependent care, education, and energy-efficient home improvements that are separate from federal credits. Check the Tennessee Department of Revenue for Tennessee-specific credits.
- Consider the standard vs. itemized deduction. Some states allow itemized deductions even if you take the federal standard deduction — or have their own standard deduction amounts that differ from federal. Checking the state-specific rules can sometimes reveal additional savings.
What to Do After Getting Your Estimate
- If you expect to owe money, consider adjusting your W-4 withholding or making a state estimated tax payment to avoid a balance due at filing time.
- If you are self-employed, your SE tax is separate — use our self-employment tax calculator to estimate that additional obligation.
- To verify your numbers, use the official Tennessee tax forms or consult a qualified tax professional familiar with Tennessee tax law.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Tennessee Department of Revenue or a qualified tax professional for guidance specific to your situation.