Average Salary in Tennessee (TN)

Tennessee has no state income tax on wages — the old Hall Tax on dividends and interest was fully phased out in 2021, making Tennessee's earned-income tax structure identical to Florida's and Texas's. The $64,035 median household income is below the national average, but the cost-of-living index of 91 means effective purchasing power is stronger than the wage number suggests. The economy has three distinct anchors. Nashville has been one of the fastest-growing metros in the US over the past decade, driven by healthcare (HCA Healthcare is the largest for-profit hospital chain in the US, headquartered in Nashville), the music industry, and a rapidly growing corporate-relocation footprint. Memphis is the logistics capital of the country by several measures — FedEx's global hub at Memphis International is the largest cargo airport in the Western Hemisphere, and Memphis is also the second-largest inland port on the Mississippi. East Tennessee (Knoxville, Chattanooga) has a different mix — manufacturing, the Volkswagen plant in Chattanooga, and Oak Ridge National Laboratory. The $7.25/hour minimum wage remains at the federal floor. Property taxes are low. Tennessee has no estate or inheritance tax. Full data follows.