Tennessee Taxes, Wages and Housing Costs Guide for 2026

Published 3 November 2026 by Kloora Tools

Quick answer: in Tennessee the minimum wage is 7.25 an hour, the average effective property tax is about 0.54 percent of home value, and there is no state income tax on wages. This guide pulls the main numbers together and links to a free calculator for each one.

What is the minimum wage in Tennessee?

The Tennessee minimum wage is 7.25 per hour in 2026. Working 40 hours a week for a full year at that rate pays about 15,080 before tax, or 1,257 a month. Overtime above 40 hours a week is paid at least 1.5 times the regular rate, which is 10.88 per hour here. Use the Tennessee minimum wage calculator to enter your own hours.

How much tax comes out of a paycheck in Tennessee?

Tennessee has no state income tax on wages, so only federal income tax and FICA come out of your pay. Social Security takes 6.2 percent up to the yearly wage cap, and Medicare takes 1.45 percent. On a 60,000 salary a single filer in Tennessee keeps about 50,390 a year after federal tax, FICA and an estimated state tax, which is about 4,199 a month. On 100,000 the figure is about 79,180. Try your own pay in the Tennessee paycheck calculator.

How much is sales tax in Tennessee?

The state base sales tax rate is 7 percent, and local governments can add more. On a 100 purchase that is about 7.00 of state tax. Rules for food, clothing and online purchases differ by state, so check the Tennessee department of revenue. The Tennessee sales tax calculator adds your local rate.

How much is property tax in Tennessee?

The average effective property tax rate in Tennessee is about 0.54 percent of home value a year. On a 350,000 home that is about 1,890 a year, or 158 a month. Property tax is lower than in most states. Your real bill depends on your county, city and school district and on exemptions such as homestead or senior relief. Estimate yours with the Tennessee property tax calculator.

What does a mortgage cost in Tennessee?

Take a 350,000 home with 10 percent down and a 6.5 percent 30 year loan. Principal and interest is about 1,991 a month. Add Tennessee property tax of about 158, insurance of 150 and private mortgage insurance of about 131, and the total comes to roughly 2,430 a month. Run your own numbers in the Tennessee mortgage calculator.

How much house can you afford in Tennessee?

Lenders often use the 28/36 rule: housing costs under 28 percent of gross income and all debts under 36 percent. With a 100,000 income, 500 of monthly debts and 40,000 down at 6.5 percent, the 28/36 rule supports a home of roughly 359,810 in Tennessee. The Tennessee home affordability calculator lets you change income, debts and down payment.

A note on accuracy

These figures are planning estimates for 2026. Tax rates, wage rules and property tax rates change, and local rules can differ from state averages. Confirm with the Tennessee state agencies and the IRS before making financial decisions.

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