Tennessee Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Tennessee state income tax as a freelancer or 1099 contractor. Tennessee has no state income tax on wages, salaries, or investment income.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$0
Total Tax Owed
$17,391

Summary

Total Income
$75,000
Total Taxes
-$17,391
After-Tax Income
$57,609
Effective Tax Rate(on total income)
23.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$4,348
Q2 (Apr-May)Due June 15
$4,348
Q3 (Jun-Aug)Due September 15
$4,348
Q4 (Sep-Dec)Due January 15 (next year)
$4,348
Each Quarterly Payment
$4,348

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $4,348. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Tennessee Tax Overview for Freelancers

Tennessee has no state income tax on wages, salaries, or investment income. Tennessee fully eliminated its Hall tax on investment income in 2021. Self-employed individuals in Tennessee pay federal self-employment tax (15.3%) plus federal income tax, and no state income tax — giving Tennessee freelancers a significant advantage.

No state income tax (any type)High sales tax (7%)Booming Nashville job marketMajor corporate relocations

Self-Employment Taxes in Tennessee

If you work as a freelancer or independent contractor in Tennessee, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Tennessee state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Tennessee Income Tax for Freelancers

Tennessee has no state income tax on wages, salaries, or investment income. Tennessee fully eliminated its Hall tax on investment income in 2021.

Cost of Living for Freelancers in Tennessee

Tennessee's cost of living is about 7% below the national average, with Nashville growing more expensive. As a freelancer in Tennessee, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Tennessee Freelancers

  • No state income tax on any income type — Tennessee is one of the most tax-friendly states
  • Nashville's booming healthcare, music, and tech industries offer competitive salaries
  • Tennessee has a relatively high sales tax (7%) — factor this into your cost of living
  • Tennessee's no-tax status has attracted many corporate relocations and remote workers

Key Tennessee Tax Features

  • No state income tax (any type)
  • High sales tax (7%)
  • Booming Nashville job market
  • Major corporate relocations

Model Your Tennessee Freelance Finances Over Time

This calculator shows your Tennessee tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Frequently Asked Questions

How is self-employment tax calculated in Tennessee?
Tennessee has no state income tax, so self-employed workers in Tennessee only pay federal self-employment tax (15.3% on 92.35% of net earnings) and federal income tax. This makes Tennessee one of the most favorable states for freelancers and 1099 contractors.
How much will I owe in quarterly taxes as a freelancer in Tennessee?
Your quarterly estimated tax payment in Tennessee depends on your total tax liability — including SE tax, federal income tax, and no state income tax (since Tennessee has none). Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Tennessee freelancers?
Freelancers in Tennessee can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. Since Tennessee has no state income tax, deductions only reduce your federal tax liability.
Does Tennessee have any special taxes for self-employed workers?
No. Tennessee has no state income tax and no additional self-employment taxes. You only need to worry about federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Tennessee?
The decision to form an LLC or S-Corp in Tennessee depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Tennessee tax professional for advice specific to your situation.

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