How Tennessee taxes bonuses
Tennessee has no state income tax on wages, so a bonus loses only federal income tax, Social Security and Medicare.
Federal withholding is the same in every state. Most employers take a flat 22% of the bonus (37% on supplemental pay over $1,000,000 in a year). Social Security takes 6.2% up to the yearly wage base and Medicare 1.45%. If your employer adds the bonus to a regular $2,500 paycheck instead, the aggregate method withholds about $1,150.54 of federal tax on a $5,000 bonus, against $1,100.00 with the flat rate.
Take-home pay on a bonus in Tennessee
What is withheld from bonuses of different sizes, with the federal flat rate, for a single filer who has not yet reached the Social Security wage base this year.
| Bonus | Federal income tax | Social Security and Medicare | Tennessee deductions | Take-home bonus | You keep |
|---|---|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $0.00 | $703.50 | 70.3% |
| $2,500 | $550.00 | $191.25 | $0.00 | $1,758.75 | 70.3% |
| $5,000 | $1,100.00 | $382.50 | $0.00 | $3,517.50 | 70.3% |
| $10,000 | $2,200.00 | $765.00 | $0.00 | $7,035.00 | 70.3% |
| $25,000 | $5,500.00 | $1,912.50 | $0.00 | $17,587.50 | 70.3% |
| $50,000 | $11,000.00 | $3,825.00 | $0.00 | $35,175.00 | 70.3% |
Tennessee bonus taxes compared with nearby states
The same $5,000 bonus, flat federal rate, in each state that borders Tennessee. Tennessee leaves as much of a bonus as any state that borders it.
| State | State bonus withholding | State taxes on the bonus | Take-home bonus |
|---|---|---|---|
| Tennessee | No income tax | $0.00 | $3,517.50 |
| Alabama bonus tax calculator | 5% flat | $250.00 | $3,267.50 |
| Arkansas bonus tax calculator | 3.7% flat | $185.00 | $3,332.50 |
| Georgia bonus tax calculator | 4.99% flat | $249.50 | $3,268.00 |
| Kentucky bonus tax calculator | 3.5% flat | $175.00 | $3,342.50 |
| Mississippi bonus tax calculator | Regular tables | $200.00 | $3,317.50 |
| Missouri bonus tax calculator | 4.7% flat | $235.00 | $3,282.50 |
| North Carolina bonus tax calculator | 4.09% flat | $204.50 | $3,313.00 |
| Virginia bonus tax calculator | 5.75% flat | $287.50 | $3,230.00 |
More Tennessee pay calculators
For your regular take-home pay, use the Tennessee paycheck calculator. To see a bonus next to your regular paycheck, try the bonus paycheck calculator. Employers paying a bonus can use the bonus payroll calculator or the Tennessee payroll calculator. The bonus tax calculator page compares every state.
Sources
Federal figures follow IRS Publication 15. See how we calculate for the withholding method.