Paycheck Calculator — Tennessee
Tennessee taxes neither wages nor investment income — the Hall tax on interest and dividends was fully repealed in 2021, removing the state's last individual income tax. A Tennessee paycheck in this model loses nothing to the state, leaving an estimated $50,390 of net annual pay on a $60,000 single salary.
2026 take-home pay estimate
Annual gross used: $85,000
Estimated take-home, per year
$68,627.50
- Net per year
- $68,628
- Take-home rate
- 80.7%
- Top federal rate
- 22%
- Paychecks / year
- 1
Annual deductions from gross
Estimate for the 2026 tax year using the federal standard deduction and published IRS/SSA rates. It does not model itemized deductions, tax credits, dependents, or local city taxes. Tennessee levies no state individual income tax, so take-home pay reflects only federal income tax and FICA. Not tax advice.
No tax on wages — and since 2021, none on investment income either
Tennessee never taxed wages, but for decades it did tax interest and dividends through the Hall income tax. That tax was phased out and fully repealed as of 2021, so today Tennessee taxes neither paychecks nor investment income. In this model a $60,000 single filer keeps an estimated $50,390 a year — an 84.0% take-home rate — with only 2026 federal income tax, Social Security, and Medicare reducing gross pay.
Federal withholding still follows the usual simplifications: the standard deduction is assumed, and credits, dependents, local levies, and pre-tax benefits are not modeled. The output is a 2026 estimate to plan around, not tax advice.
Questions
- Does Tennessee still tax interest and dividends?
- No. The Hall income tax, which once applied to interest and dividend income, was phased down and fully repealed in 2021. Tennessee now levies no individual income tax of any kind — on wages or on investment income.
- What actually reduces a Tennessee paycheck in this estimate?
- Only the federal layer: 2026 federal income tax after the standard deduction, Social Security at 6.2% up to the $184,500 wage base, and Medicare at 1.45%. On a $60,000 single salary that leaves an estimated $50,390 — and the figure is an estimate, not tax advice.