Tennessee Bonus Tax Calculator

Short version: in Tennessee, a bonus paid on its own is withheld at the flat federal 22%, 0% for state tax (Tennessee has no income tax), and 7.65% FICA. Those are withholding rates, not the tax itself; your bonus settles at your marginal rate on your return — the tool below shows by how much.

Cross-border check: Tennessee vs. Georgia, Kentucky and North Carolina on a bonus

Side by side, a $70,000 earner's $10,000 bonus in Tennessee versus Georgia, Kentucky and North Carolina:

Figures are the 22% federal plus state plus FICA for a single filer; the income tax you owe reconciles on your return.

A $6,500 bonus on a $61,000 Tennessee salary: withheld vs. actually owed

Say you earn $61,000 in Tennessee and your employer cuts a separate $6,500 bonus check:

• Off the top: $1,927 disappears at payday — $1,430 federal, $0 state, and $497 FICA — so roughly $4,573 actually reaches you, a 29.6% cut.
• At tax time: the bonus's actual income tax works out near $880 (federal $880) — and FICA is the same $497 as before.
• The gap: about $550 of income-tax over-withholding comes back as a refund when you file. FICA ($497) stays either way — it's a real tax.

Example single-filer numbers from the calculator above; your own refund or bill shifts with your total income and filing status.

Tennessee bonus withholding, piece by piece

Federal withholding on a bonus. The IRS default holds back a flat 22% for federal income tax when the bonus is separate from your regular pay (IRS Pub 15). It rises to a mandatory 37% on any bonus dollars past $1,000,000 in a year — the third bracket's rate as a default, not a bonus tax.

Tennessee: state withholding is zero. Since Tennessee imposes no income tax on wages, a bonus has nothing deducted for the state; only the 22% federal prepayment and FICA come off. Tennessee has no tax on wages; its 'Hall tax' on interest and dividend income was fully repealed in 2021, making the state completely income-tax-free.

The 7.65% FICA slice doesn't true up. Social Security and Medicare are genuine taxes on a bonus, not a prepayment. That's why the calculator shows the same FICA under "withheld now" and "what it really costs" — there's nothing to refund; only the income-tax portion trues up.

For everyday pay instead of a bonus, the Tennessee paycheck calculator is the tool to use.

Tennessee bonus tax FAQ

Do I get a refund on my Tennessee bonus?

If 22% was more than your real rate, yes — the over-withheld income tax returns at filing. If your marginal rate tops 22%, you owe the shortfall. FICA doesn't come back either way.

Does Tennessee tax my bonus at all?

Tennessee charges no state income tax on it. You still owe federal income tax (a flat 22% is withheld, trued up at filing) and FICA on the bonus.

How much is withheld from a bonus in Tennessee?

Tennessee has no state income tax, so $0 is withheld for state tax. Federally, a separately paid bonus is withheld at a flat 22% (37% above $1,000,000/yr), plus 7.65% FICA — a prepayment, not your final tax.

Is there a special bonus tax rate in Tennessee?

No. The 22% federal and the state supplemental rate are withholding defaults, not rates that apply only to bonuses. Your real tax is your ordinary marginal rate.

Bonus tax calculators near Tennessee

Tennessee paycheck calculator · all state bonus tax calculators →