2026 tax year · Tennessee

Rental host taxes in Tennessee

Airbnb, Turo and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Tennessee that gap is worth $2,252 in tax.

Take a driver who grossed $39,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the rental host page $10,100 comes off and $28,900 is left as taxable profit. That profit is what Tennessee and the IRS charge against.

What that leaves you owing in Tennessee

Self-employment tax$4,083
Federal income tax$861
Tennessee income tax$0, no state income tax
Total tax$4,944
Effective rate on gross12.7%

Earning more in Tennessee

A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:

VolumeGrossMileage offTaxable profitTennessee taxTotal taxRate on gross
Part-time $13,000 $0 $13,000 , $1,837 14.1%
Steady side income $39,000 $0 $39,000 , $7,196 18.5%
Full-time $63,000 $0 $63,000 , $12,729 20.2%

Switching state opens that state's page.

Enter your numbers and press Calculate to see your 2026 estimate.

Local taxes on a Tennessee let

The income tax below is only part of it. Short-term lets attract occupancy, lodging or transient taxes levied by the city or county rather than Tennessee, often at rates that dwarf the state income tax. Some platforms collect and remit them; some collect only part; in some places the host is on the hook entirely. That is a local question this calculator cannot answer, and it is the one hosts most often get wrong.

On $28,900 of profit, what the states around Tennessee would charge:

StateIts taxvs Tennessee
Kentucky $1,012 +$1,012
Arkansas $1,050 +$1,050
North Carolina $1,153 +$1,153
Mississippi $1,156 +$1,156
Missouri $1,217 +$1,217
Virginia $1,404 +$1,404
Alabama $1,405 +$1,405
Georgia $1,500 +$1,500

Rental host tax questions in Tennessee

How much should a Tennessee host set aside?

About 12.7% of gross on the $39,000 example, $4,944 across self-employment tax, federal income tax and nothing to Tennessee. Set aside from each payout rather than finding it in April.

Does the $39,000 on my 1099-NEC match what Tennessee taxes?

No. Tennessee taxes profit, not gross. After $10,100 of deductions the taxable figure is $28,900, so there is no Tennessee tax either way. But the federal side drops by $2,252.

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