2026 tax year · Tennessee
1099 tax calculator for Tennessee
Tennessee has no state income tax, so a self-employed worker there owes only federal income tax and self-employment tax on their 1099 income.
How 1099 tax works in Tennessee
Tennessee levies no personal income tax for 2026, so the state column of the estimate above is zero. The federal layer still applies in full, a no-income-tax state does not reduce it.
On top of that sits the federal layer, which is the same wherever you live: self-employment tax plus federal income tax. The 1099 tax calculator hub works through how that half is built.
Worked example: $50,000 of 1099 income in Tennessee
A single filer with $50,000 of net 1099 income and no W-2 wages, taking the standard deduction, owes an estimated:
| Self-employment tax | $7,065 |
| Federal income tax | $2,667 |
| Tennessee state income tax | $0 |
| Total tax | $9,732 |
| Effective rate | 19.5% |
| After-tax income | $40,268 |
What the rate alone doesn't tell you about Tennessee
Tennessee draws a sharp line by entity type. A sole proprietor faces only the gross-receipts business tax, and only after $100,000 of gross receipts in a county or city (a minimal activity license covers the $3,000 to $100,000 range; the business tax itself has a $22 minimum). Form an LLC, though, even a single-member LLC, and the franchise and excise taxes apply: 0.25% of net worth with a $100 minimum, plus 6.5% of Tennessee taxable income. In Tennessee, staying unincorporated is itself a tax decision.
The state sales tax is 7%, among the highest state rates in the country, plus local rates.
Tennessee against the states it borders
On $50,000, Tennessee charges $0 of state income tax. Of the 8 states it borders, Kentucky is the lightest at $1,750 and Virginia the most expensive at $2,618, a spread of $867 on the same income.
| State | Tax on $50,000 | vs Tennessee |
|---|---|---|
| Kentucky | $1,750 | +$1,750 |
| Arkansas | $1,873 | +$1,873 |
| North Carolina | $1,995 | +$1,995 |
| Mississippi | $2,000 | +$2,000 |
| Missouri | $2,230 | +$2,230 |
| Alabama | $2,460 | +$2,460 |
| Georgia | $2,595 | +$2,595 |
| Virginia | $2,618 | +$2,618 |
- Kentucky would take $1,750 more, $1,750 against Tennessee's $0.
- Arkansas would take $1,873 more, $1,873 against Tennessee's $0.
- North Carolina would take $1,995 more, $1,995 against Tennessee's $0.
- Mississippi would take $2,000 more, $2,000 against Tennessee's $0.
- Missouri would take $2,230 more, $2,230 against Tennessee's $0.
- Alabama would take $2,460 more, $2,460 against Tennessee's $0.
- Georgia would take $2,595 more, $2,595 against Tennessee's $0.
- Virginia would take $2,618 more, $2,618 against Tennessee's $0.
What this estimate assumes
- Single filer, $16,100 federal standard deduction, net profit after expenses.
- No local income tax is modeled.
- Nothing is withheld and Tennessee collects no income tax, so the whole liability is yours to set aside.
Tennessee 1099 tax questions
Does Tennessee tax 1099 income?
No. Tennessee has no personal income tax for 2026, so 1099 profit earned there faces federal income tax and self-employment tax only. On the $50,000 example above that is $9,732 in total tax and nothing to the state. Note what the missing state line doesn't change: self-employment tax runs 15.3% on most of the profit (12.4% Social Security plus 2.9% Medicare) wherever you live, which is why the answer in Tennessee is "no state tax," never "no tax."
How much should a 1099 worker in Tennessee set aside?
About 19% of net profit, based on the $50,000 single-filer example above ($9,732 of federal, self-employment and no state tax combined). Your own rate moves with filing status, other income and deductions, run the calculator with your numbers.
Are there local income taxes in Tennessee?
The estimate above models federal, self-employment and state income tax only, it does not include any city, county or school-district income tax. The 2026 dataset carries no local-tax note for Tennessee, so check with the municipality where you live and work before relying on the state figure alone.
When are quarterly estimated payments due?
Federal 1040-ES payments for the 2026 tax year are due April 15, 2026, June 16, 2026, September 15, 2026, January 15, 2027. Tennessee has no income tax, so there is no state estimated payment to make.