How Much Do You Take Home on Minimum Wage in Tennessee?
The minimum wage in Tennessee is $7.25 per hour in 2026. Working a standard 40-hour week for 52 weeks, your gross annual income is $15,080. After federal income tax, Social Security, and Medicare, your estimated take-home pay is $13,926 per year.
Note: This calculator shows federal taxes only. Tennessee also has state income tax which will further reduce take-home pay.
| Time Period | Gross Pay | Federal Tax Est. | Take Home |
|---|---|---|---|
| Hourly | $7.25 | $0.55 | $6.70 |
| Weekly (40 hrs) | $290 | $22 | $268 |
| Monthly | $1,256.67 | $96.13 | $1,161 |
| Annual | $15,080 | $1,154 | $13,926 |
What Taxes Come Out of a Minimum Wage Paycheck in Tennessee?
Working at the Tennessee minimum wage of $7.25/hr, three federal taxes are deducted from every paycheck:
- Federal Income Tax - $0. At $15,080 annual income you are below the $16,100 standard deduction for 2026 (single filer), so no federal income tax is owed on full-time minimum wage earnings.
- Social Security (6.2%) - Deducted on all earned income up to the 2026 wage base of $184,500. Minimum wage earnings are always fully subject to it.
- Medicare (1.45%) - Deducted on all earned income with no cap.
Tennessee Minimum Wage Details for 2026
Tennessee has no state minimum wage law, so the federal $7.25/hr rate applies, and the state has no income tax on wages.
Take-home pay: A full-time Tennessee worker at $7.25/hr earns $15,080 per year before taxes. After 2026 federal income tax ($0) and FICA ($1,154), estimated take-home is about $13,926 per year - roughly $1,161 per month or $268 per week. Because Tennessee has no state income tax on wages, this federal estimate is close to your actual paycheck.
Local rates: No Tennessee city sets a local minimum wage; state law preempts them.
Scheduled changes: There is no scheduled increase because Tennessee defers to the federal rate.
Cost of living: Nashville's rapid growth has driven up housing costs, but Tennessee's lack of a state income tax means workers keep more of the federal wage.
Wage figure verified against the U.S. Department of Labor state minimum wage table (updated July 1, 2026). Federal tax estimates use the 2026 IRS standard deduction of $16,100 for single filers. This is an estimate, not tax advice.
How This Is Calculated: Tennessee Worked Example
Every figure in the table above comes from the same four-step calculation, using the 2026 IRS standard deduction, 2026 federal tax brackets, and current FICA rates. Here is the full math for one year of full-time work at the Tennessee minimum wage:
- Step 1 - Annual gross pay: $7.25/hour × 40 hours × 52 weeks = $15,080.
- Step 2 - Apply the standard deduction: The 2026 IRS standard deduction for a single filer is $16,100.
- Step 3 - Federal income tax: Taxable income is $15,080 − $16,100 = $0 (the deduction exceeds gross pay). Federal income tax owed: $0.
- Step 4 - FICA taxes: Social Security (6.2%) plus Medicare (1.45%) equals 7.65% of gross pay: $15,080 × 0.0765 = $1,153.62. FICA applies from the first dollar earned - the standard deduction does not reduce it.
Annual take-home: $15,080 − $0 − $1,153.62 = $13,926.38. That matches the Annual row in the table above. Assumptions: single filer, no dependents, standard deduction, no state or local income tax withheld in this federal estimate, no pre-tax benefits. Your actual paycheck may differ - this is an educational estimate, not tax advice.
Tennessee Minimum Wage FAQ
Data sources: Minimum wage rates from U.S. Department of Labor, Wage and Hour Division. Tax calculations based on 2026 IRS federal tax brackets. State-specific rates verified against state labor department websites. Last updated: April 2026
Disclaimer: These calculators provide estimates for federal taxes only and should not be considered tax advice. Actual take-home pay may vary based on additional deductions, state/local taxes, filing status, and other factors. Consult a tax professional for personalized advice.