Texas vs. Tennessee
On a $75,000 salary, take-home pay is nearly identical in both states. Prices are 6% higher in Texas, so after adjusting for cost of living Tennessee comes out ahead.
Last verified November 2, 2026.
| Texas | Tennessee | |
|---|---|---|
| State income tax | Does not tax wages, so there is no state income tax withheld from paychecks. | Does not tax wages, so there is no state income tax withheld from paychecks. |
| Minimum wage | $7.25 | $7.25 |
| Price level (U.S. = 100) | 97.1 | 91.9 |
| Employer cost on a $50,000 hire | $4,500 | $4,456 |
| SUTA wage base | $9,000 | $7,000 |
Take-home pay at the same salary
| Salary | Texas take-home | Tennessee take-home | Difference |
|---|---|---|---|
| $50,000 | $42,355 | $42,355 | $0 |
| $75,000 | $61,593 | $61,593 | $0 |
| $100,000 | $79,180 | $79,180 | $0 |
| $150,000 | $113,791 | $113,791 | $0 |
Single filer, standard deduction, tax year 2026. Excludes local income taxes.
Adjusted for cost of living
Using BEA regional price parities, $61,593 in Texas buys what $63,460 buys in an average-priced state, and $61,593 in Tennessee buys what $67,043 does. To keep the same buying power moving from Texas to Tennessee, a $75,000 salary would need to be about $70,992 before the tax difference.
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Frequently asked questions
- Is Texas or Tennessee better for take-home pay?
- On a $75,000 salary, take-home pay is about the same.
- Which state is cheaper for employers, Texas or Tennessee?
- Employer taxes and insurance on a $50,000 hire are about $4,500 in Texas and $4,456 in Tennessee.