Tennessee (TN) Paycheck Calculator 2026

Tennessee paychecks: federal tax and FICA only

Tennessee has no income tax on wages and no local payroll taxes, so the deductions on a Tennessee pay stub are federal income tax, Social Security and Medicare, plus anything you choose such as health insurance or a 401(k). There is no Tennessee withholding form to fill out; your employer uses only your federal Form W-4.

On a $60,000 salary, a single filer keeps about $50,390 a year, or $2,100 per semi-monthly check. Of the $9,610 withheld, $5,020 is federal income tax and $4,590 is FICA.

Semi-monthly pay and minimum wage

Tennessee’s payday law requires at least semi-monthly paydays, according to the U.S. Department of Labor’s summary of state payday rules. That means two checks a month at minimum, not one.

Tennessee has no state minimum wage law, so the federal minimum of $7.25 an hour applies, and overtime follows federal rules (time-and-a-half after 40 hours for non-exempt workers).

Tipped and hospitality workers

From 2025 through 2028, workers can deduct up to $25,000 of qualified tips on their federal return, phasing out above $150,000 of income. With no state tax in Tennessee, that federal deduction is the whole benefit.

Example: a single server earning $38,000 including tips owes about $2,380 of federal income tax before the tip deduction in our calculator. If $12,000 of that is qualified tips, the deduction removes it from taxable income and cuts federal income tax to about $990, a saving of $1,390. Part of the saving comes at the 12% rate and part at 10%, because the deduction pulls taxable income down into the first bracket. Social Security and Medicare are still owed on all tips.

• Report all cash tips to your employer each month so they are included in FICA and withholding.
• If withholding on your base wage is too small to cover tax on tips, the shortfall shows up at filing time. Add extra withholding on line 4(c) of the W-4 if needed.

Investment income in Tennessee

Until 2021, Tennessee did tax one kind of income: interest and dividends, under the Hall income tax. It was phased down and fully repealed for tax years beginning January 1, 2021, so savings interest and dividends are now untaxed by the state as well. You only need to think about federal tax on that income.

Getting withholding right with no state tax

• If you moved from a state with income tax, your total withholding drops. Do not mistake the larger check for a raise in federal liability: your federal bill is unchanged.
• Two jobs or a working spouse: use the multiple-jobs worksheet on the W-4 or the IRS Tax Withholding Estimator; federal withholding tables treat each job as if it were your only one.
• Bonuses are generally withheld at 22% federal. For many Tennessee workers in the 12% bracket, that over-withholds and comes back as a refund.