Salary Guide · 2026
Tennessee Salary Guide (2026)
This guide explains how salaries are taxed in Tennessee, what take-home pay looks like at different income levels, and how cost of living affects real purchasing power across major cities.
Tennessee Income Snapshot
Individual median income
$38,000
-32% vs US median
Household median income
$65,619
US Census ACS 2023
Median take-home (annual)
$32,639
Eff. rate: 14.11%
Median monthly take-home
$2,720
Single filer, 2026
Income Tax Structure in Tennessee
Tax system: No state income tax on wages
Tennessee has no income tax on wages. Nashville and Memphis are rapidly growing cities with strong entertainment, healthcare, and logistics sectors. Cost of living is rising but remains below coastal norms.
Take-Home Pay at Popular Salary Levels
Single filer · Standard deduction · TN state tax · 2026 IRS brackets
| Gross salary | Federal tax | State tax | FICA | Take-home | Monthly | Eff. rate |
|---|---|---|---|---|---|---|
| $55,000 | $4,494 | $0 | $4,208 | $46,298 | $3,858 | 15.82% |
| $85,000 | $10,054 | $0 | $6,503 | $68,443 | $5,704 | 19.48% |
| $125,000 | $18,914 | $0 | $9,563 | $96,523 | $8,044 | 22.78% |
| $175,000 | $30,914 | $0 | $13,388 | $130,698 | $10,892 | 25.32% |
Take-home as % of gross
Housing Affordability in Tennessee Cities
Based on $125,000 salary · Rent: HUD FMR 2026 · COL: C2ER/ACCRA
Nashville
COL: 1.31× · 1BR rent: $1,900/mo
Rent burden: 23.6% of take-home
Is $125,000 enough in Nashville? →Memphis
COL: 0.91× · 1BR rent: $1,100/mo
Rent burden: 13.7% of take-home
Is $125,000 enough in Memphis? →Knoxville
COL: 1.03× · 1BR rent: $1,300/mo
Rent burden: 16.2% of take-home
Is $125,000 enough in Knoxville? →Chattanooga
COL: 1.00× · 1BR rent: $1,250/mo
Rent burden: 15.5% of take-home
Is $125,000 enough in Chattanooga? →Clarksville
COL: 0.95× · 1BR rent: $1,150/mo
Rent burden: 14.3% of take-home
Is $125,000 enough in Clarksville? →Murfreesboro
COL: 1.08× · 1BR rent: $1,400/mo
Rent burden: 17.4% of take-home
Is $125,000 enough in Murfreesboro? →Popular Salary Guides for Tennessee
Is This Salary Enough in Tennessee?
Frequently Asked Questions
Is $100,000 a good salary in Tennessee?
A $100,000 salary in Tennessee yields approximately $78,996 per year ($6,583/month) after federal and state taxes. In most Tennessee cities, this is above the state individual median of $38,000 — generally a comfortable income.
How much state income tax do you pay in Tennessee?
Tennessee has No state income tax on wages. For a $85,000 salary, the estimated state income tax is $0. Your effective rate depends on your income level, filing status, and deductions.
What salary is considered middle class in Tennessee?
The individual median income in Tennessee is $38,000 and the household median is $65,619 (Census ACS 2023). Middle-class income typically ranges from 67%–200% of the household median, roughly $43,965–$131,238 for a family.
Data Sources
- •Tax calculations: IRS federal tax tables
- •Payroll taxes: Social Security Administration
- •Salary data: Bureau of Labor Statistics
- •Rent data: HUD Fair Market Rents
Data updated monthly using government datasets.