State income tax (top rate)
None
Property tax (avg effective)
0.71%
PTET workaround
Not available
Tennessee tax notes
- No state income tax (Hall Income Tax on investments was eliminated in 2021). Property tax averages 0.71%.
Sample tax numbers for Tennessee
Quick orientation — use the full calculator for your actual situation.
State income tax on $100,000 taxable$0
Property tax on $400,000 home (avg)$2,840
SALT deduction usable (capped at $10k)$2,840
Tax moves that matter most for Tennessee
No state income tax — focus on federal levers
Tennessee has no state income tax, so SALT cap concerns are limited to property tax. Optimization focus shifts to federal: 401(k), Mega Backdoor Roth, HSA, S-Corp election for self-employed.
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S-Corp election for self-employed
At net SE income above ~$80k-$100k, electing S-Corp typically saves $5k-$15k/yr in self-employment tax — the math is largely federal but affects Tennessee state tax via PTET (if applicable).
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Solo 401(k) for self-employed retirement
If you have 1099 income, Solo 401(k) lets you contribute up to $70,000/yr (2025) — far more than SEP-IRA in most cases. Reduces both federal and Tennessee state income tax.
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Run your Tennessee numbers
Open the full optimizer with Tennessee pre-selected to see your specific tax picture.
Open the full calculator