Tennessee Bonus Tax Calculator 2026
Tennessee does not tax wages, and its old Hall tax on investment income ended in 2021 — so a bonus loses only federal tax and FICA.
Bonus check calculator
From the Hall tax to no tax
Tennessee never taxed wages. Its Hall income tax applied only to interest and dividends, and — per the Department of Revenue — "was repealed for tax periods that begin on January 1, 2021, or later." Since then Tennessee has had no individual income tax of any kind, and the Department tells taxpayers not to file a Hall return for any later year.
The bonus math
A Tennessee bonus check is reduced by federal income tax withholding and FICA only: $3,517.50 from $5,000 and $10,552.50 from $15,000 at the 22% federal rate.
Working in Kentucky or Georgia
Tennessee residents who work across a state line are taxed by the work state. Kentucky's 2026 formula withholds 3.5% of a bonus added to regular pay ($175.00 on $5,000, plus any local occupational tax), and Georgia withholds at its 4.99% rate for bonuses paid since May 11, 2026 ($249.50).
Flat or aggregate
The one choice that changes a Tennessee bonus check is the federal method. Added to a $3,000 biweekly paycheck under the aggregate method, the $5,000 bonus nets $3,451.19 instead of $3,517.50. If that leaves more withheld than the bonus adds to your federal tax, it comes back as a refund.
| Rule | No state income tax withholding |
|---|---|
| Valid through | No end date (statute or constitution) |
| Documents | Hall Income Tax (Read 2026-10-05) |
| Agency | Tennessee Department of Revenue |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| Tennessee income tax | −$0.00 |
| Net | $3,517.50 |