Tennessee Minimum Wage and Income Tax 2026
What it costs to pay people and earn money in Tennessee.
Minimum wage$7.25per hour
Income taxNo wage income tax
State sales tax7.00%about 9.61% with local tax
Corporate tax6.50%
Minimum wage in Tennessee
The minimum wage is $7.25 an hour, the same as the federal rate. No state minimum wage law. The federal $7.25 applies to employers covered by federal law.
Full time at 40 hours, that is $290 a week or $15,080 a year. It ranks 32 of 51, higher than 0 others.
As of July 1, 2026. Source: U.S. Department of Labor.
Income tax in Tennessee
Tennessee has no state income tax on wages.
Single filers, as of January 1, 2026. Source: Tax Foundation.
Corporate tax in Tennessee
The top corporate income tax rate is 6.50%. Also has a gross receipts tax.
It ranks 22 of 51.
As of April 2, 2026. Source: Tax Foundation.
Sales tax in Tennessee
The state rate is 7.00%. With the average local tax, shoppers pay about 9.61%.
As of July 1, 2026. Source: Tax Foundation.