Free Tool
Tennessee Tax Calculator
Tennessee residents pay zero state income tax, meaning you only owe federal income taxes. This puts Tennessee in an elite group alongside Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming as the only states with no income tax on wages.
Use the federal calculator below to estimate your federal tax refund. All income you earn in Tennessee is subject to federal taxation using the standard IRS progressive bracket system, but you will owe nothing to the state.
Calculate Your State Tax
Why Tennessee Has No Income Tax
Tennessee is one of only nine states that does not impose a state income tax on wages. This policy has been in place to attract businesses and residents, and the state funds its operations primarily through sales taxes, property taxes, and other revenue sources. For official state tax information, visit the IRS for federal tax guidance.
Living in Tennessee means you only need to calculate your federal tax liability. However, it's important to understand that while you save on state income taxes, the state may have higher sales tax rates or property taxes compared to states with income taxes. The lack of state income tax can result in significant savings for high-income earners.
Federal Tax Filing for Tennessee Residents
Even though Tennessee has no state income tax, all residents must file federal income tax returns with the IRS. The federal system uses progressive tax brackets ranging from 10% to 37% for the 2026 tax year. You can use our federal tax calculator to estimate your federal refund.
For the 2026 tax year, the federal standard deduction is $15,300 for single filers and $30,600 for married filing jointly. These amounts are indexed annually for inflation. Additionally, Tennessee residents are eligible for all federal tax credits including the Child Tax Credit ($2,500 per child), Earned Income Tax Credit, and education credits.
Tax Planning Considerations for Tennessee Residents
Without state income tax deductions to worry about, Tennessee residents can focus their tax planning on federal strategies. This includes maximizing retirement contributions (401k, IRA), health savings accounts (HSA), and charitable donations. Since Tennessee does not tax retirement income either, it's a popular destination for retirees.
If you're moving to Tennessee from a state with income tax, be aware that you may need to file a part-year resident return in your previous state. Consult the IRS individual taxpayers page for guidance on multi-state tax situations.