1. What Is Tennessee Salary Tax Calculator?

The Tennessee Salary Tax Calculator helps residents estimate their net take-home pay after accounting for federal taxes, FICA, and Tennessee's Hall Tax on dividends and interest income. Tennessee has no state income tax on wages and salaries.

2. How Does The Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total earnings before any deductions
• Federal Tax — Calculated based on IRS tax brackets and filing status
• TN Hall Tax — 6% tax applied only to dividends and interest income
• FICA — 7.65% for Social Security (6.2%) and Medicare (1.45%)

Explanation: Tennessee is one of the few states with no income tax on wages, making take-home pay calculations unique compared to other states.

3. Tennessee Tax Structure

Details: Tennessee eliminated its Hall Tax on dividends and interest income in 2021, but the calculator includes it for historical reference and for those with dividend income from previous years. The state relies primarily on sales tax for revenue.

4. Using The Calculator

Tips: Enter your gross salary, any dividend income, and select your filing status. The calculator will estimate your federal tax, FICA contributions, and any applicable Hall Tax on dividends.

5. Frequently Asked Questions (FAQ)

Q1: Does Tennessee have state income tax?
A: No, Tennessee has no state income tax on wages and salaries. The Hall Tax on dividends and interest was eliminated in 2021.

Q2: What is the Hall Tax?
A: The Hall Tax was Tennessee's 6% tax on dividends and interest income, which was phased out completely by 2021.

Q3: What taxes do Tennessee residents pay?
A: Federal income tax, FICA (Social Security and Medicare), and state sales tax (one of the highest in the nation).

Q4: Is this calculator accurate for all situations?
A: This provides an estimate. Actual tax liability may vary based on deductions, credits, and other factors not included in this simplified calculation.

Q5: How does Tennessee's tax system compare to other states?
A: Tennessee has one of the most taxpayer-friendly systems with no income tax on wages, though it compensates with higher sales taxes.