2026 Tennessee Tax Calculator: 0% State Tax & Paycheck
Calculate your net take-home pay in the Volunteer State. Built with Tennessee's constitutional 0% individual income tax, 0% local wage taxes, and 2026 federal payroll withholdings.
Interactive Tennessee Paycheck Calculator
Why Tennessee Has No State Income Tax in 2026
Tennessee is one of only nine U.S. states with no individual state income tax on earned wages:
1. Constitutional Ban on State Income Taxes
In November 2014, Tennessee voters approved a constitutional amendment to Article II, Section 28 of the state constitution, permanently prohibiting the General Assembly from levying any tax on payroll, earned income, or salaries.
2. Complete Repeal of the Hall Income Tax
Tennessee historically taxed dividend and interest income under the Hall Income Tax. However, legislation enacted in 2016 completely phased out and repealed the Hall Tax, making Tennessee 100% income tax-free on both wages and investment income since January 1, 2021.
3. How Tennessee Funds State Operations
Because Tennessee does not tax personal income, state revenues are generated through a state sales tax of 7.00% (combined with local options reaching up to 9.75%), business excise taxes, and tourism revenues.
Frequently Asked Questions: Tennessee Tax Calculator
Do I have to file a state tax return in Tennessee?
No. Individual residents of Tennessee do not file an annual state individual income tax return with the Tennessee Department of Revenue.
Does Tennessee tax remote workers employed by out-of-state companies?
If you live in Tennessee and work remotely for a company based in another state, Tennessee levies 0% state tax. However, ensure your employer updates your withholding location to Tennessee to avoid improper withholding from the employer's state.
Does Tennessee tax capital gains or retirement accounts?
No. Tennessee does not tax capital gains, pensions, 401(k) withdrawals, or IRA distributions.