Tennessee pay stubs: no state tax on wages
Tennessee does not tax wages, so paychecks show federal income tax, Social Security and Medicare but no state or local income tax. Here is the breakdown.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Tennessee has never taxed wages and salaries. For many years it did tax certain interest and dividend income under the Hall income tax, but that tax was fully phased out in 2021. Today there is no personal income tax of any kind, so a Tennessee pay stub has no state income tax line and employees do not complete a state withholding certificate.
Other state payroll deductions
Tennessee does not have a state disability insurance program or a paid family leave payroll contribution. State unemployment insurance premiums are paid by employers, not deducted from employee pay. That leaves only the deductions an employee signs up for, such as health coverage or a retirement plan, and any court-ordered withholding like child support.
Local taxes
Nashville, Memphis, Knoxville and other Tennessee cities and counties do not levy local income taxes. Where someone works inside the state has no effect on their withholding.
Federal withholding still applies
Federal taxes are the main deductions on a Tennessee stub:
- Federal income tax, withheld according to the employee's Form W-4. This is the line that varies most from person to person.
- Social Security at 6.2% of wages up to the annual Social Security wage base. Once an employee's year-to-date wages reach the base, this deduction stops for the rest of the year.
- Medicare at 1.45% of all wages, plus an additional 0.9% withheld on wages over $200,000.
Creating a Tennessee pay stub with PayStubNest
Start at /app/new. Enter hours worked or a salary and choose Tennessee. The exact figures on each stub depend on the employee's pay, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically, applying federal withholding with no state income tax and carrying year-to-date totals over so the Social Security wage base and the additional Medicare threshold are handled as the year goes on. Previews are free; you pay only when you download a stub.
Record-keeping tip
Tennessee employers often have staff who live in or travel to nearby states. If an employee does part of their work somewhere that taxes wages, keep a log of those days and set up that state's withholding separately; the Tennessee stub on its own will not cover it. For questions about pay statements, the Tennessee Department of Labor and Workforce Development is the place to check. Our guides cover the rest.