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Tennessee 1099 Tax Calculator 2026

Estimate your self-employment taxes as a Tennessee contractor. Includes SE tax (15.3%), the 50% SE deduction, and no state income tax.

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Tennessee Tax Overview for 1099 Workers

Tennessee has no state income tax on wages or salaries, making it one of the most tax-friendly states for wage earners. Tennessee previously taxed interest and dividend income (the "Hall Income Tax"), but that was fully phased out in 2021. No Tennessee city charges a local income tax. Tennessee workers in Memphis, Nashville, Knoxville, and Chattanooga all keep the same amount — no state or local income tax on their paycheck. Tennessee funds its state government primarily through sales tax (7% state rate, one of the highest in the country) and business taxes. For W-2 employees, the no-income-tax benefit is straightforward: your only deductions below gross pay are federal income tax and FICA. Compared to neighboring Georgia (5.19% flat) and North Carolina (3.99% flat), Tennessee workers take home significantly more.

Frequently Asked Questions

Does Tennessee have a state income tax? ▾
No. Tennessee has no income tax on wages, salaries, or most earned income. The Hall Income Tax on dividends and interest was eliminated in 2021.
Does Tennessee tax retirement income? ▾
No. Tennessee does not tax wages, Social Security, pension income, or retirement account distributions.
Do Tennessee cities charge local income tax? ▾
No. Nashville, Memphis, Knoxville, Chattanooga, and all other Tennessee cities charge no local income tax on wages.
How much more do I take home in Tennessee vs Georgia? ▾
On an $80,000 salary, a Tennessee worker takes home roughly $4,200 more per year than a Georgia worker (who pays 5.19% flat state income tax).

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