Kentucky vs Tennessee
Kentucky has a progressive state income tax reaching 3.50%. Tennessee has no state income tax on wages. Federal tax is identical in both, so the state layer is the whole difference.
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The difference is the state layer
Tennessee levies no income tax on wages; Kentucky cut its flat rate for 2026.
US$1,982 a year apart on US$60,000, in favour of Tennessee
| Gross | Kentucky keeps | Tennessee keeps | Difference |
|---|---|---|---|
| US$30,000 | US$25,353 | US$26,285 | US$932 more in Tennessee |
| US$60,000 | US$48,408 | US$50,390 | US$1,982 more in Tennessee |
| US$100,000 | US$75,798 | US$79,180 | US$3,382 more in Tennessee |
| US$150,000 | US$108,659 | US$113,791 | US$5,132 more in Tennessee |
Both use the USD, so these are the same amount of money on both sides. Figures are for a single filer and exclude cost of living, and include federal tax and payroll taxes, which are identical either side.
Both states apply the same federal income tax, Social Security and Medicare. Enter a salary above and switch the state selector between Kentucky and Tennessee to see the gap on your own number.
Local taxes are not included, and they can change this comparison where one of the two has significant city or county income taxes.