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Tennessee Income Tax Guide

No tax on earned incomeTennessee has no state individual income-tax withholding on employee wages.
Hall Tax fully repealedThe former interest and dividend tax is repealed for periods beginning in 2021 and later.
Federal taxes remainFederal income tax, Social Security, and Medicare still affect take-home pay.
Official SourcesTennessee withholdingHall Tax repealTennessee RevenueIRS
Tennessee withholdingHall Tax repealTennessee RevenueIRS
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How Tennessee taxes work

Tennessee individual tax is $0No state individual tax is applied to supported 2026 wage or investment income.
The Hall repeal is reflectedThe calculator does not apply the former interest and dividend tax.
Federal income tax remainsSupported federal tax is calculated independently.
Payroll taxes remainSocial Security and Medicare still apply under federal rules.
Franchise and excise taxes are separateEntity-level obligations are not treated as employee income tax.

Common Tennessee tax questions

Does Tennessee tax wages?No state income tax is withheld from earned income.
Is the Hall Tax still active?No. It was fully repealed for tax years beginning in 2021.
Why are taxes still shown?Federal income and payroll taxes remain.
Are LLC taxes included?No. Tennessee franchise and excise obligations are entity-specific.
Are sales taxes included?No. Purchase taxes are outside take-home-pay calculations.
Is a Tennessee individual return prepared?No current broad individual income-tax return is prepared.