2025 Tax Year

Tennessee Side Hustle Tax Calculator

Tennessee has no state income tax. Calculate your federal self-employment tax instantly.

TNNo state tax

7 million residents

No signup required

2025 rates

Always free

Last updated: January 2026 · Data from IRS Rev Proc 2024-40

Filing Status

State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Great news for Tennessee side hustlers: The Volunteer State has no state income tax on earned income. Whether you're freelancing in Nashville, driving for Uber in Memphis, or running an Etsy shop from Knoxville, you won't owe any Tennessee state income tax on your side hustle earnings.

Tennessee Tax Guide

How Side Hustle Taxes Work in Tennessee

Tennessee is one of nine states with no state income tax:

**What Tennessee side hustlers pay:** - Federal self-employment tax: 15.3% - Federal income tax: 10% to 37% - Tennessee state income tax: $0

**Tennessee's tax-free status:** - No tax on wages, salaries, or self-employment income - No tax on interest or dividends (Hall Tax eliminated in 2021) - No local income taxes anywhere in Tennessee

If you earn $15,000 from a side hustle in Tennessee, you'll save $750-$1,350 compared to living in a state with 5-9% income tax rates.

Example

What Tennessee Side Hustlers Owe

Let's say you're a single filer in Nashville with a $50,000 W-2 job and $25,000 in side hustle income from freelance music production, with $5,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $20,000 - Federal SE tax (15.3% of 92.35%): ~$2,827 - Federal income tax on side income: ~$4,400 (22% bracket) - Tennessee state tax: $0 - **Total additional tax: ~$7,227**

Your effective tax rate is about 36%—among the lowest in the country.

Important Dates

Tennessee Tax Deadlines 2025

Since Tennessee has no state income tax, you only track federal deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use IRS Form 1040-ES for federal quarterly estimated payments.

Save Money

Common Deductions for Tennessee Freelancers

Even without state income tax, maximizing federal deductions saves money: - Home office deduction - Vehicle expenses (67 cents/mile for 2025) - Equipment and supplies - Professional services - The 20% QBI deduction is especially valuable with no state tax to reduce

Common Questions

Tennessee Side Hustle Tax FAQ

Does Tennessee tax side hustle income?

No, Tennessee has no state income tax on earned income including self-employment earnings. The Hall Tax on interest/dividends was eliminated in 2021.

Do I need to file Tennessee state taxes?

No, since Tennessee has no state income tax, there's no state return to file for your side hustle income.

Is Tennessee good for freelancers?

Yes, Tennessee is one of the best states for self-employed individuals. With no state income tax, you save thousands annually compared to California or New York.

Compare Tax Rates