Tennessee Nanny Tax Guide
Tennessee has no state income tax on wages (the Hall tax on investment income was eliminated in 2021). This makes it one of the simpler states for household employers.
Minimum Wage
$7.25/hour (federal)
SUTA Rate Range
0.1% - 10.0%
Key Things to Know
- No state income tax on wages
- Uses federal minimum wage
- No disability or paid leave requirements
- Hall tax on investment income eliminated in 2021
Tennessee Employer Requirements
No State Income Tax
Tennessee has no income tax on wages. You only need to handle federal income tax withholding if your employee requests it on their W-4.
State Unemployment Insurance
Employers pay SUI tax on the first $7,000 of wages. New employer rate is 2.7%, with rates ranging from 0.1% to 10.0% based on experience.
Workers' Compensation
Tennessee generally does not require workers' compensation for household employers with fewer than 5 employees.
What will it cost?
Wondering what you'll actually owe as a Tennessee employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Nanny Tax Calculator
See exactly what you'll owe in taxes for your situation.
2026 Tax Deadline Calendar
All quarterly deadlines for Tennessee and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
Compare Tennessee employer costs to all 50 states.
NannyKeeper handles Tennessee taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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