Finance · Tennessee · Tax year 2026
Tennessee Self-Employment Tax Calculator 2026
On $100,000 of 2026 self-employment profit, a single Tennessee sole proprietor with no other income owes about $22,365: $14,130 of self-employment tax, $8,235 of federal income tax, and no Tennessee income tax. That is 22.4% of profit, or $5,591 for each quarterly estimated payment.
Against its neighbors, the same $100,000 of profit costs $4,530 more in Virginia and $2,951 more in Arkansas.
- State income tax
- None on wages or self-employment income
- Tennessee tax on $100,000
- $0
- National rank
- $0 — tied with 9 others for lowest
- Set aside on $100,000
- 22.4%
- LLC filing fee
- $300
- State sales tax
- 7% + local
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Enter your net profit — revenue minus business expenses — to see how much to set aside and what to pay each quarter.
A 2026 planning estimate using the standard deduction, not a tax return: it ignores credits, itemized deductions, and AMT. All calculations happen in your browser. Nothing is stored.
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Tennessee self-employment tax at common profit levels
2026 estimates for a single filer with no other income, using the standard deduction and no retirement or health insurance deductions. Tennessee does not tax this income, so every dollar here is federal; the neighbor comparison below shows what the same profit would cost next door.
| Profit | SE tax | Federal income tax | Total | Set aside | Quarterly |
|---|---|---|---|---|---|
| $40,000 | $5,652 | $1,775 | $7,427 | 18.6% | $1,857 |
| $60,000 | $8,478 | $3,559 | $12,037 | 20.1% | $3,009 |
| $80,000 | $11,304 | $5,344 | $16,647 | 20.8% | $4,162 |
| $100,000 | $14,130 | $8,235 | $22,365 | 22.4% | $5,591 |
| $150,000 | $21,194 | $16,413 | $37,608 | 25.1% | $9,402 |
| $250,000 | $29,851 | $36,509 | $66,360 | 26.5% | $16,590 |
Tennessee vs its neighbors
The same $100,000 of 2026 profit for a single sole proprietor, run through each state's rules. Federal tax is the same everywhere, so the difference is state income tax. Against its neighbors, the same $100,000 of profit costs $4,530 more in Virginia and $2,951 more in Arkansas.
| State | State income tax | Total tax | Set aside | vs Tennessee |
|---|---|---|---|---|
| Tennessee | $0 | $22,365 | 22.4% | — |
| Alabama | $4,348 | $26,713 | 26.7% | +$4,348 |
| Arkansas | $2,951 | $25,316 | 25.3% | +$2,951 |
| Georgia | $3,889 | $26,254 | 26.3% | +$3,889 |
| Kentucky | $3,135 | $25,500 | 25.5% | +$3,135 |
| Mississippi | $2,985 | $25,350 | 25.3% | +$2,985 |
| Missouri | $3,373 | $25,737 | 25.7% | +$3,373 |
| North Carolina | $3,199 | $25,564 | 25.6% | +$3,199 |
| Virginia | $4,530 | $26,894 | 26.9% | +$4,530 |
How the gap changes with profit
Extra tax (+) or savings (−) for a single filer if the same business were based in each of its neighbors instead of Tennessee.
| Profit | Alabama | Arkansas | Georgia | Kentucky | Mississippi | Missouri | North Carolina | Virginia |
|---|---|---|---|---|---|---|---|---|
| $40,000 | +$1,671 | +$888 | +$1,106 | +$1,184 | +$755 | +$789 | +$975 | +$1,323 |
| $60,000 | +$2,582 | +$1,576 | +$2,034 | +$1,834 | +$1,498 | +$1,658 | +$1,716 | +$2,392 |
| $80,000 | +$3,493 | +$2,263 | +$2,961 | +$2,485 | +$2,242 | +$2,519 | +$2,458 | +$3,461 |
| $100,000 | +$4,348 | +$2,951 | +$3,889 | +$3,135 | +$2,985 | +$3,373 | +$3,199 | +$4,530 |
| $150,000 | +$6,439 | +$4,958 | +$6,208 | +$4,762 | +$4,844 | +$5,615 | +$5,053 | +$7,202 |
| $250,000 | +$10,435 | +$8,503 | +$10,989 | +$8,115 | +$8,677 | +$10,118 | +$8,876 | +$12,711 |
Married filing jointly
| Profit | Alabama | Arkansas | Georgia | Kentucky | Mississippi | Missouri | North Carolina | Virginia |
|---|---|---|---|---|---|---|---|---|
| $40,000 | +$1,500 | +$768 | +$358 | +$1,183 | +$423 | +$86 | +$466 | +$767 |
| $60,000 | +$2,426 | +$1,455 | +$1,285 | +$1,834 | +$1,166 | +$913 | +$1,207 | +$1,836 |
| $80,000 | +$3,342 | +$2,143 | +$2,213 | +$2,485 | +$1,910 | +$1,775 | +$1,949 | +$2,904 |
| $100,000 | +$4,253 | +$2,831 | +$3,140 | +$3,135 | +$2,653 | +$2,636 | +$2,691 | +$3,973 |
| $150,000 | +$6,530 | +$4,837 | +$5,459 | +$4,762 | +$4,512 | +$4,858 | +$4,545 | +$6,645 |
| $250,000 | +$10,762 | +$8,382 | +$10,240 | +$8,115 | +$8,345 | +$9,361 | +$8,368 | +$12,154 |
What's different about Tennessee for the self-employed
- Tennessee does not tax wages or self-employment income.
- A single-member LLC owned by an individual is not disregarded for Tennessee franchise and excise tax: it owes 6.5% excise tax on net earnings and franchise tax (minimum $100). Sole proprietors without an LLC do not.
- The state business tax on gross receipts requires a return only at $100,000 or more of receipts in a jurisdiction.
- A single-member LLC owned by an individual is NOT disregarded for Tennessee franchise & excise tax: it files its own F&E return, owes 6.5% excise tax on net earnings and at least the $100 minimum franchise tax each year, even with no profit. Sole proprietors without an LLC are not subject to F&E.
- Business tax (a gross receipts tax) applies if a business grosses $100,000 or more in a county/city; in-state businesses with more than $3,000 but less than $100,000 need a minimal activity license from the county/municipal clerk instead.
- Each new business pays a separate $15 business license registration fee to the county and/or municipal clerk.
LLC fees and sales tax in Tennessee
- Forming an LLC: $300 state filing fee.
- Annual Report: $300, every year, due by April 1.
- Sales tax: 7% statewide, plus local rates in many cities and counties. Use the Sales Tax Calculator to price a sale.
A single-member LLC is taxed exactly like a sole proprietorship unless it elects S or C corporation status, so the self-employment tax figures on this page apply either way.
Tennessee self-employment tax FAQs
How much should I set aside for taxes if I'm self-employed in Tennessee?
For a single filer with no other income, about 20.1% of profit at $60,000, 22.4% at $100,000, and 25.1% at $150,000 for 2026. That is 4.5 points less than in Virginia, the costliest of its neighbors at 26.9%. Enter your own numbers in the calculator for a personal figure.
Does Tennessee tax self-employment income?
No. Tennessee does not tax wages or self-employment income. Federal self-employment tax and federal income tax still apply.
What Tennessee business taxes still apply without an income tax?
A single-member LLC owned by an individual is not disregarded for Tennessee franchise and excise tax: it owes 6.5% excise tax on net earnings and franchise tax (minimum $100). Sole proprietors without an LLC do not. The state business tax on gross receipts requires a return only at $100,000 or more of receipts in a jurisdiction.
How much does an LLC cost in Tennessee?
The state filing fee to form an LLC is $300. Annual Report: $300, every year, due by April 1. A single-member LLC is still taxed like a sole proprietorship for federal purposes, so the self-employment tax figures above apply.
Sources and method
Computed with the Self-Employment Tax Calculator's 2026 engine and Tennessee's rules from the sources below. Planning estimates, not a return. Last checked 2026-10-08.
- revenue.support.tn.gov/hc/en-us/articles/360057842032-F-E-3-Filing-Requirements-for-Disregarded-Entities
- www.tn.gov/revenue/tax-resources/legal-resources/archived-resources/tennessee-works/tn-business-tax-changes.html
- sos-prod.tnsosgovfiles.com/s3fs-public/document/ss-4270.pdf
- sos.tn.gov/businesses/faqs
- www.tn.gov/revenue/taxes/sales-and-use-tax.html
- www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2026/franchise-tax.pdf
- www.tn.gov/revenue/taxes/business-tax/registration-and-licensing.html