Loading
Tap on the profile icon to edit
your financial details.

Tennessee Income Tax Calculator

Your Details Done

Overview of Tennessee Taxes

Tennessee has no income tax on salaries and wages. There is a flat statewide rate for all income from interest and dividends. Tennessee has the highest overall sales tax in the country. Homeowners in the state pay some of the lowest property taxes in the nation.

Retired? Use our Retirement Income Tax Calculator.
Enter your financial details to calculate your taxes
Household Income
Dismiss
Location
Dismiss
Filing Status
401(k) Contribution
Dismiss
IRA Contribution
Dismiss
Itemized Deductions
Dismiss
Number of Personal Exemptions
Dismiss
Your Income Taxes
Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
Tax 
Amount
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Your Tax Breakdown
Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
Total Estimated Tax Burden
$
  • About This Answer
    ...read more
  • Our Assumptions
    ...read more
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

    ...read more
Save more with these rates that beat the National Average
Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again.
Searching for accounts...
Ad Disclosure
How helpful was this page in answering your question?
not helpful
very helpful
​If you could change one thing about ​this page what would it be?​
Thank you for your answer! Your feedback is very important to us.
We are working hard to improve our product and could use your help!
We pay $30 for 30 minutes on the phone to hear your thoughts on what we can do better.
Please enter your email if you'd like to be contacted to help.

Please enter your name
Tennessee state tax quick facts
  • Income tax: none (4% flat rate on interest and dividends only)
  • Sales tax: 8.5% - 9.75%
  • Property tax: 0.75%
  • Gas tax: 25.40 cents per gallon of regular gasoline, 22.4 cents per gallon of diesel

While tax day is a time for celebration in the Volunteer State, which has no state tax on salaries and wages, a trip to the mall might be cause to sing the blues. That’s because Tennessee has the second-highest overall sales tax in the country, with combined state and local rates averaging 9.46%. (And if you want to wash away those sales tax sorrows with a drink, keep this in mind: 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 0.75%, 11th-lowest in the country. Below, we’ll take a closer look at Tennessee’s tax system—read on to find out how much the tax man might take from you.

Tennessee Income Tax

Tennessee has no state income tax on salaries, wages, bonuses or any other type of income-for-work. The state does have the “Hall income tax,” named after the Tennessee state senator who sponsored the legislation in 1929. It is a 4% tax for the 2017 tax year that applies only to earnings from interest and investment dividends. A taxpayer’s first $1,250 in interest or dividend income is exempt from the tax (the exemption is $2,500 for joint filers), so only people earning more than that must pay the 4% rate. Furthermore, seniors and the blind earning less than $37,000 are fully exempt.

The Hall income tax is being phased out and will decrease 1% every year until it reaches 0%. The final tax year with the tax will be 2020.

If you are looking for help on your federal tax return, consider hiring a tax professional or using tax preparation software like TaxSlayer and TaxAct

Tennessee Sales Tax

The statewide base sales tax in Tennessee is 7%, which by itself is the second-highest statewide rate in the nation. However, cities and counties can collect additional sales tax, with local rates totaling as much as 2.75%. The table below shows the combined state and local rates for every county and the 100 largest cities in Tennessee.

Sales Tax Rates (Updated January 2018)

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%2.25%9.25%
Madison7.00%2.75%9.75%
Marion7.00%2.75%9.75%
Marshall7.00%2.25%9.25%
Maury7.00%2.25%9.25%
McMinn7.00%2.00%9.00%
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%2.25%9.25%
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%2.75%9.75%
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%2.25%9.25%
Wilson7.00%2.25%9.25%
CityState RateCounty + City RateTotal Sales Tax
Alcoa7.00%2.75%9.75%
Arlington7.00%2.75%9.75%
Athens7.00%2.00%9.00%
Atoka7.00%2.75%9.75%
Bartlett7.00%2.75%9.75%
Bloomingdale7.00%2.25%9.25%
Brentwood7.00%2.25%9.25%
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%2.25%9.25%
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%2.25%9.25%
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%
La Follette7.00%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%2.25%9.25%
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%2.25%9.25%
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%2.25%9.25%
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%2.25%9.25%
Oak Ridge7.00%2.75%9.75%
Oakland7.00%2.25%9.25%
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%2.25%9.25%
Springfield7.00%2.75%9.75%
Sweetwater7.00%2.25%9.25%
Tellico Village7.00%2.50%9.50%
Tullahoma7.00%2.75%9.75%
Union City7.00%2.75%9.75%
White House7.00%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%. 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. After that, up to $3,200 there is a statewide rate of 9.75%. Finally, for any portion of the purchase price exceeding $3,200, a lower rate of 7% is applied.

While Tennessee has the second-highest sales tax rates in the country (behind only Louisiana), 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. On average, they pay just $1,088 per year in property taxes. That adds up to an effective property tax rate of 0.75%, meaning the average Tennessee homeowner pays just 0.75% of her home’s market value in taxes annually. This is the 11th-lowest in the U.S. That rate ranges significantly depending on where you live, however. Rates are highest in Shelby County at about 1.5% and lowest in Cumberland County at less than 0.4%.

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 with details specific to each county. It’s also useful guide for those considering refinancing a property in the Volunteer State.

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. Among the professions subject to the tax are accountants, architects, attorneys, dentists, engineers, optometrists, physicians and veterinarians.

Tennessee Alcohol Tax

Tennessee’s tax on alcoholic beverages is $4.46 per gallon of spirits and $1.27 per gallon of wine. Beer faces both an excise tax and a wholesale rate of 17%, which totals around $1.29 per gallon. That’s the highest beer tax in the nation.

Tennessee Gas Tax

The Tennessee gas tax is equal to 25.4 cents per gallon of regular gasoline (20th-lowest in the country), or 22.4 cents per gallon of diesel (11th-lowest 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.

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

Worse
Better
Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.

Sources: US Census Bureau 2016 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset