Tennessee minimum wage: $7.25/hr (2026)
📊 Tennessee Income Tax Overview 2026
Tennessee uses a No income tax on wages income tax system. See the wage table below for common take-home pay amounts.
| Taxable Income (Single) | CA Tax Rate | Tax on Bracket |
|---|---|---|
| $0 – $10,412 | 1.0% | up to $104 |
| $10,413 – $24,684 | 2.0% | up to $285 |
| $24,685 – $38,959 | 4.0% | up to $571 |
| $38,960 – $54,081 | 6.0% | up to $907 |
| $54,082 – $68,350 | 8.0% | up to $1,141 |
| $68,351 – $349,137 | 9.3% | up to $26,139 |
| $349,138 – $418,961 | 10.3% | up to $7,192 |
| $418,962 – $698,274 | 11.3% | up to $31,560 |
| $698,275+ | 13.3% | highest bracket |
Source: TN Dept of Revenue · 2026. No income tax on wages since 2021.
💵 Common Hourly Wages — Tennessee After-Tax
Here's what various hourly wages look like after Tennessee taxes (single filer, 2026):
| Hourly Rate | Annual Gross | CA State Tax | Take-Home/yr | Take-Home/mo |
|---|---|---|---|---|
| $17/hr | $35,360 | ~$618 | ~$29,400 | ~$2,450 |
| $20/hr | $41,600 | ~$935 | ~$33,500 | ~$2,792 |
| $22/hr | $45,760 | ~$1,155 | ~$36,600 | ~$3,050 |
| $25/hr | $52,000 | ~$1,614 | ~$41,700 | ~$3,475 |
| $30/hr | $62,400 | ~$2,450 | ~$49,600 | ~$4,133 |
| $35/hr | $72,800 | ~$3,350 | ~$57,100 | ~$4,758 |
| $40/hr | $83,200 | ~$4,260 | ~$64,600 | ~$5,383 |
| $50/hr | $104,000 | ~$6,450 | ~$79,400 | ~$6,617 |
🏙️ Tennessee Major Cities — Wages & Cost of Living 2026
Here's a cost of living overview for major Tennessee cities:
📖 California Tax Guide for Workers 2026
California State Income Tax
California uses a progressive income tax system with 9 brackets (1%–13.3%). Unlike federal taxes, California has a relatively low standard deduction of $5,202 for single filers in 2026, meaning more of your income is subject to state tax compared to federal tax.
State Disability Insurance (SDI)
California workers pay SDI at 0.9% of gross wages with no wage ceiling since January 2024. SDI provides short-term disability benefits and Paid Family Leave (PFL) — you may be eligible to receive up to 60–70% of your wages if you need to take time off for a qualifying disability or family reason.
California vs. No-Tax States
Compared to Texas or Florida (0% state tax), a California worker earning $52,000/year pays approximately $2,100–$2,500 more in state taxes annually. However, California offers benefits including disability insurance, paid family leave, strong worker protections, and higher minimum wages.
California Overtime Law
California has stricter overtime rules than federal law: overtime (1.5× rate) applies after 8 hours in a single day (not just 40 hours/week). Double time (2× rate) applies after 12 hours in a day or after 8 hours on the 7th consecutive day worked. This can significantly increase take-home for hourly workers who work long days.
California COLA & Living Wage
California has the highest cost of living of any U.S. state. The MIT Living Wage Calculator estimates a single adult in Los Angeles needs ~$30–35/hr to meet basic needs without government assistance. In San Francisco, the equivalent is closer to $38–42/hr. A $17/hr minimum wage, while the highest state minimum in the U.S., still falls short of a true living wage in California's major cities.
❓ Frequently Asked Questions
Tennessee's minimum wage is the federal minimum of $7.25/hour. Tennessee has not set a state minimum above the federal rate. Nashville does not have a separate city minimum. Tennessee's low tax environment is attractive despite the low minimum wage.
No — Tennessee eliminated all income taxes on wages and salaries when the Hall Income Tax (which only taxed dividends and interest) was phased out and fully repealed in 2021. Tennessee workers pay only federal income tax and FICA — similar to Texas and Florida.
$25/hr (~$3,475/month after TN taxes) is very comfortable in most Tennessee cities. Nashville 1-bedrooms average $1,500–$2,200 (rapidly rising). Knoxville, Chattanooga, and Memphis are much more affordable at $900–$1,400. Most financial advisors recommend budgeting 30% of take-home for housing (~$988/month) — which is very difficult in coastal CA metros at $25/hr.
At $52,000/year, Tennessee workers (no income tax) take home ~$41,700 while Kentucky workers (flat 4%) take home ~$39,700. Tennessee workers keep approximately $2,000 more per year. However, Tennessee has higher sales tax (up to 9.75%).
Tennessee follows federal FLSA overtime rules: 1.5× rate for hours over 40/week. Tennessee does not have daily overtime requirements. The state also follows federal exempt salary thresholds. Tennessee is an at-will employment state with relatively employer-friendly labor laws. These rules apply to most non-exempt employees regardless of industry.