SalaryFact logosalaryfact.comData: BLS OEWS May 2025

Tennessee Salary Percentile
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Tennessee has no state income tax on wages — only a Hall Tax on investment income, which was fully repealed in 2021. Nashville and Memphis are the primary metros, with significant healthcare, music, and logistics sectors.

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Enter your gross annual salary (pre-tax). Hourly workers: multiply hourly rate by 2,080.

Tennessee salary percentiles — May 2025

PercentileTennesseeNational
10th$29K$31K
25th$35K$38K
50th (median)median$47K$51K
75th$75K$81K
90th$119K$129K

State figures derived from BLS OEWS May 2025 state median. National figures from BLS national percentile data.

Key insight

Tennessee has no state income tax on wages. The state median of $47K is below the national median, but the tax advantage significantly improves effective purchasing power for residents.

Tennessee salary — frequently asked questions

What is the median salary in Tennessee?

The median annual salary in Tennessee is approximately $47K based on May 2025 BLS data, below the national median. The no-income-tax advantage partially offsets lower gross wages. Nashville's healthcare and entertainment sector wages are significantly above the state median.

What is Nashville's economy based on?

Nashville is the healthcare industry capital of the US by number of headquarters — HCA Healthcare, Community Health Systems, and dozens of healthcare companies are based there. Healthcare IT and music industry are also major employers. Nashville wages in healthcare and tech run 25-35% above the Tennessee state median.

What is a good salary in Nashville?

Nashville's rapid growth has pushed housing costs significantly higher. A salary of $65,000-$75,000 is recommended for comfortable single living in Nashville today. The metro's population growth from inbound migration from higher-cost states has raised rents and home prices faster than wages in many sectors.

Does Tennessee have any state income taxes?

Tennessee has no state income tax on wages or salaries. Tennessee previously had the Hall Tax on investment income (dividends and interest), but that was fully repealed effective January 1, 2021. Tennessee relies primarily on sales tax, which at 7% is one of the highest in the US, partially offsetting the income tax advantage for lower earners.

What is the average salary in Tennessee?

"Average" and "median" measure different things, but BLS reports the median: the midpoint where half of Tennessee workers earn more and half earn less. The Tennessee median is $47K, below the national median of $51K. Use the calculator above to see exactly where your salary ranks.

Salary percentiles by state