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Tennessee Overtime Calculator 2026

Calculate your Tennessee take-home pay including overtime. Overtime pays 1.5× your regular rate for all hours over 40 per week under federal FLSA rules.

Tennessee Income Tax Overview

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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