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Tennessee Income Tax Calculator

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Overview of Tennessee Taxes

Tennessee has no income tax on salaries and wages.  And beginning with the 2021 tax year, the state repealed all taxes levied on income earned from interest and dividends. Tennessee also has the highest overall average sales tax in the country, while homeowners in the state pay some of the lowest property taxes in the nation.

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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2021 
Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2021 - 2022 filing season.

Your 2021 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2021 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 1, 2021

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • Our Expert

    ...read more
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Taxes in Tennessee

Tennessee State Tax Quick Facts

  • Income tax: None
  • Sales tax: 7.00% - 9.75%
  • Property tax: 0.64% average effective rate
  • Gas tax: 26 cents per gallon of regular gasoline, 27 cents per gallon of diesel

Tax day is a time for celebration in the Volunteer State, as the state has no taxes on salaries and wages. On the other hand, a trip to the mall might be cause to sing the blues. Tennessee has the highest overall sales tax in the country, with combined state and local rates averaging 9.55%. Tennessee also has the highest beer tax in the nation at $1.29 per gallon.

On the other hand, Tennessee homeowners probably aren’t crying over the state’s property taxes, which have an average effective rate of 0.64%, 15th-lowest in the country.

A financial advisor in Tennessee can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial plans, including retirement, homeownership, insurance and more, to make sure you are preparing for the future.

Tennessee Income Taxes

Tennessee has no state income tax on salaries, wages, bonuses or any other type of work income. Although the state used to tax income earned from interest and dividends, it has repealed this starting with the 2021 tax year. This was called the “Hall Income Tax,” since it was named after the Tennessee state senator who sponsored the legislation in 1929.

Tennessee Sales Tax

The statewide base sales tax in Tennessee is 7%, which by itself is tied for the second-highest statewide rate in the nation. However, cities and counties can collect additional sales taxes, with local rates ranging from 1.50% to 2.75%. The table below shows the combined state and local rates for every county and the largest cities in Tennessee.

Sales Tax Rates(Updated January 2022)

County
CountyState RateCounty RateTotal Sales Tax
Anderson7.00%2.75%9.75%
Bedford7.00%2.75%9.75%
Benton7.00%2.75%9.75%
Bledsoe7.00%2.25%9.25%
Blount7.00%2.75%9.75%
Bradley7.00%2.75%9.75%
Campbell7.00%2.25%9.25%
Cannon7.00%1.75%8.75%
Carroll7.00%2.75%9.75%
Carter7.00%2.75%9.75%
Cheatham7.00%2.25%9.25%
Chester7.00%2.75%9.75%
Claiborne7.00%2.25%9.25%
Clay7.00%2.75%9.75%
Cocke7.00%2.75%9.75%
Coffee7.00%2.75%9.75%
Crockett7.00%2.75%9.75%
Cumberland7.00%2.75%9.75%
Davidson7.00%2.25%9.25%
Decatur7.00%2.50%9.50%
DeKalb7.00%2.75%9.75%
Dickson7.00%2.75%9.75%
Dyer7.00%2.75%9.75%
Fayette7.00%2.25%9.25%
Fentress7.00%2.50%9.50%
Franklin7.00%2.25%9.25%
Gibson7.00%2.75%9.75%
Giles7.00%2.50%9.50%
Grainger7.00%2.75%9.75%
Greene7.00%2.75%9.75%
Grundy7.00%2.25%9.25%
Hamblen7.00%2.75%9.75%
Hamilton7.00%2.25%9.25%
Hancock7.00%2.00%9.00%
Hardeman7.00%2.75%9.75%
Hardin7.00%2.75%9.75%
Hawkins7.00%2.75%9.75%
Haywood7.00%2.75%9.75%
Henderson7.00%2.75%9.75%
Henry7.00%2.75%9.75%
Hickman7.00%2.75%9.75%
Houston7.00%2.75%9.75%
Humphreys7.00%2.75%9.75%
Jackson7.00%2.75%9.75%
Jefferson7.00%2.75%9.75%
Johnson7.00%1.50%8.50%
Knox7.00%2.25%9.25%
Lake7.00%2.75%9.75%
Lauderdale7.00%2.75%9.75%
Lawrence7.00%2.75%9.75%
Lewis7.00%2.50%9.50%
Lincoln7.00%2.50%9.50%
Loudon7.00%2.00%9.00%
Macon7.00%2.75%9.75%
Madison7.00%2.75%9.75%
Marion7.00%2.75%9.75%
Marshall7.00%2.25%9.25%
Maury7.00%2.75%9.75%
McMinn7.00%2.75%9.75%
McNairy7.00%2.25%9.25%
Meigs7.00%2.00%9.00%
Monroe7.00%2.25%9.25%
Montgomery7.00%2.50%9.50%
Moore7.00%2.50%9.50%
Morgan7.00%2.00%9.00%
Obion7.00%2.75%9.75%
Overton7.00%2.50%9.50%
Perry7.00%2.50%9.50%
Pickett7.00%2.75%9.75%
Polk7.00%2.75%9.75%
Putnam7.00%2.75%9.75%
Rhea7.00%2.75%9.75%
Roane7.00%2.50%9.50%
Robertson7.00%2.75%9.75%
Rutherford7.00%2.75%9.75%
Scott7.00%2.25%9.25%
Sequatchie7.00%2.25%9.25%
Sevier7.00%2.75%9.75%
Shelby7.00%2.25%9.25%
Smith7.00%2.00%9.00%
Stewart7.00%2.25%9.25%
Sullivan7.00%2.25%9.25%
Sumner7.00%2.25%9.25%
Tipton7.00%2.25%9.25%
Trousdale7.00%2.25%9.25%
Unicoi7.00%2.75%9.75%
Union7.00%2.25%9.25%
Van Buren7.00%2.75%9.75%
Warren7.00%2.75%9.75%
Washington7.00%2.50%9.50%
Wayne7.00%2.75%9.75%
Weakley7.00%2.75%9.75%
White7.00%2.25%9.25%
Williamson7.00%2.75%9.75%
Wilson7.00%2.75%9.75%
City
CityState RateCounty + City RateTotal Sales Tax
Alcoa7.00%2.75%9.75%
Arlington7.00%2.75%9.75%
Athens7.00%2.75%9.75%
Atoka7.00%2.75%9.75%
Bartlett7.00%2.75%9.75%
Bloomingdale7.00%2.25%9.25%
Brentwood7.00%2.75%9.75%
Bristol7.00%2.25%9.25%
Brownsville7.00%2.75%9.75%
Chattanooga7.00%2.25%9.25%
Church Hill7.00%2.75%9.75%
Clarksville7.00%2.50%9.50%
Cleveland7.00%2.75%9.75%
Clinton7.00%2.75%9.75%
Collegedale7.00%2.25%9.25%
Collierville7.00%2.75%9.75%
Columbia7.00%2.75%9.75%
Cookeville7.00%2.75%9.75%
Covington7.00%2.75%9.75%
Crossville7.00%2.75%9.75%
Dayton7.00%2.75%9.75%
Dickson7.00%2.75%9.75%
Dyersburg7.00%2.75%9.75%
East Ridge7.00%2.25%9.25%
Elizabethton7.00%2.75%9.75%
Erwin7.00%2.75%9.75%
Fairfield Glade7.00%2.75%9.75%
Fairview7.00%2.75%9.75%
Farragut7.00%2.25%9.25%
Fayetteville7.00%2.50%9.50%
Franklin7.00%2.75%9.75%
Gallatin7.00%2.25%9.25%
Germantown7.00%2.75%9.75%
Goodlettsville7.00%2.25%9.25%
Green Hill7.00%2.75%9.75%
Greenbrier7.00%2.75%9.75%
Greeneville7.00%2.75%9.75%
Harriman7.00%2.50%9.50%
Harrison7.00%2.25%9.25%
Hartsville7.00%2.25%9.25%
Henderson7.00%2.75%9.75%
Hendersonville7.00%2.25%9.25%
Humboldt7.00%2.75%9.75%
Jackson7.00%2.75%9.75%
Jefferson City7.00%2.75%9.75%
Johnson City7.00%2.50%9.50%
Kingsport7.00%2.25%9.25%
Kingston7.00%2.50%9.50%
Knoxville7.00%2.25%9.25%
LaFollette7.00%2.25%9.25%
La Vergne7.00%2.75%9.75%
Lakeland7.00%2.75%9.75%
Lawrenceburg7.00%2.75%9.75%
Lebanon7.00%2.75%9.75%
Lenoir City7.00%2.00%9.00%
Lewisburg7.00%2.25%9.25%
Lexington7.00%2.75%9.75%
Loudon7.00%2.50%9.50%
Lynchburg7.00%2.50%9.50%
Manchester7.00%2.75%9.75%
Martin7.00%2.75%9.75%
Maryville7.00%2.75%9.75%
McKenzie7.00%2.75%9.75%
McMinnville7.00%2.75%9.75%
Memphis7.00%2.75%9.75%
Middle Valley7.00%2.25%9.25%
Milan7.00%2.75%9.75%
Millersville7.00%2.25%9.25%
Millington7.00%2.75%9.75%
Morristown7.00%2.75%9.75%
Mount Juliet7.00%2.75%9.75%
Munford7.00%2.75%9.75%
Murfreesboro7.00%2.75%9.75%
Nashville7.00%2.25%9.25%
Newport7.00%2.75%9.75%
Nolensville7.00%2.75%9.75%
Oakridge7.00%2.75%9.75%
Oakland7.00%2.75%9.75%
Paris7.00%2.75%9.75%
Pigeon Forge7.00%2.75%9.75%
Portland7.00%2.25%9.25%
Pulaski7.00%2.75%9.75%
Red Bank7.00%2.25%9.25%
Ripley7.00%2.75%9.75%
Savannah7.00%2.75%9.75%
Sevierville7.00%2.75%9.75%
Seymour7.00%2.75%9.75%
Shelbyville7.00%2.75%9.75%
Signal Mountain7.00%2.25%9.25%
Smyrna7.00%2.75%9.75%
Soddy-Daisy7.00%2.25%9.25%
South Cleveland7.00%2.75%9.75%
Spring Hill7.00%2.75%9.75%
Springfield7.00%2.75%9.75%
Sweetwater7.00%2.25%9.25%
Tellico Plains7.00%2.25%9.25%
Tullahoma7.00%2.75%9.75%
Union City7.00%2.75%9.75%
Whitehouse7.00%2.75%9.75%
Winchester7.00%2.25%9.25%

Sales tax is collected on sales of tangible personal property (which includes things like jewelry, books, computer software and clothing) as well as some services. Among the types of services that are taxable are hotel or motel room rentals, parking garages, repair services (of cars, computers, etc.), installations and laundry.

Food has its own set of rules. While prepared food is taxed at the normal rate, most types of food that can be purchased at a grocery store are subject to a lower, statewide rate of 4% plus local taxes. Candy and dietary supplements, however, are not considered food and face the full sales tax rate.

Single purchases with a price of over $1,600 are subject to additional taxes. The total state and local rates listed in the table above apply to the first $1,600 of the purchase. The next $1,600 of the purchase is taxed at 9.75%. Finally, for any portion of the purchase price exceeding $3,200, a lower rate of 7% is applied.

While Tennessee has the highest sales tax rates in the country, the state does offer taxpayers one brief respite. The Tennessee sales tax holiday begins on the last Friday in July and lasts the entire weekend. Throughout that weekend, no sales tax is due on clothing items and school supplies with prices less than $100 per item and computers priced up to $1,500.

Tennessee Property Tax

Homeowners in Tennessee pay some of the lowest property taxes in the country. The median amount of property tax paid statewide is $1,220 per year. That adds up to an effective property tax rate of 0.64%, meaning the average Tennessee homeowner pays just 0.64% of their home’s market value in taxes annually. This is the 15th-lowest effective rate in the U.S.

This rate ranges significantly depending on where you live. Rates are highest in Shelby County, at about 1.42%, and lowest in Pickett County, at less than 0.37%.

Local property taxes are just one of the many things to consider if you’re thinking about purchasing a home. Check out our Tennessee mortgage guide for information about mortgage rates in Tennessee and details specific to each county.

Tennessee Inheritance and Estate Tax

The estate tax in Tennessee was fully repealed in 2016.

Tennessee Professional Privilege Tax

Professionals in certain occupations are required to pay an annual $400 fee in Tennessee. The professions subject to this tax are attorneys, securities agents, broker-dealers, investment advisers, lobbyists, osteopathic physicians and physicians.

Tennessee Alcohol Tax

Tennessee’s tax on alcoholic beverages is $4.40 per gallon of spirits and $1.21 per gallon of wine. Beer faces both an excise tax of $36.50 per barrel and a wholesale rate of 15%, which totals $1.29 per gallon. That’s the highest beer tax in the nation.

Tennessee Gas Tax

The Tennessee gas tax is equal to 26 cents per gallon of regular gasoline (tied for 29th-highest in the country) and 27 cents per gallon of diesel (tied for 30th-highest in the country).

Photo credit: flickr
  • The Great Smoky Mountain National Park, which is headquartered in Eastern Tennessee, is the most visited national park in the U.S.
  • The two largest cities in Tennessee are Memphis and Nashville. Both are known for their influential music scenes.