Tennessee has no state income tax — you keep more
| Gross Salary | $40,000 |
| Federal Income Tax | −$2,762 |
| Social Security (6.2%) | −$2,480 |
| Medicare (1.45%) | −$580 |
| Tennessee State Tax | $0 (no income tax) |
| Take-Home Pay | $34,178 |
On a $40,000 salary in Tennessee, you can expect to take home approximately $34,178 per year, or about $2,848 per month. Your effective total tax rate is 14.6%.
Tennessee is one of 9 states with no state income tax, which means you keep significantly more of your paycheck compared to high-tax states like California or New York.