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Income Tax Calculator for Memphis, TN
Local data pre-filled
The median household income in Memphis, TN is $64,743. Tennessee income tax rates, combined with federal brackets, determine your total tax burden. Use this calculator to estimate your effective tax rate in Memphis.
✓ Calculator below is pre-filled with Memphis local data
Data as of · Sources: Zillow, Census ACS, Tax Foundation, Freddie Mac
Tennessee Financial Snapshot (2026) — Income Tax Calculator
Bracket stack and standard deduction are the primary inputs for the income tax calculator in Tennessee.
How the Income Tax Calculator Math Works Under Tennessee Law
Your Tennessee income tax calculator stacks federal and state income tax onto FICA (Social Security 6.2% + Medicare 1.45%). Tennessee is one of the handful of US states with no personal income tax — your liability on the state side is $0 regardless of income[1].
Local context: Memphis, TN
Housing economics in Memphis, TN. The median home value runs 31.8% below the U.S. baseline for Memphis, TN is $244,084 per Zillow's home-value index. Median rent runs $1,435 a month per Zillow ZORI, cheaper than the national $1,850 baseline. Effective property tax sits at 0.69% of assessed value, below the 0.99% national average tracked by the Tax Foundation.
Income and tax climate. Tennessee's top marginal state income tax bracket lands at 0.00% — one of nine states that levies no broad-based income tax, shifting the revenue burden onto sales, property, and severance levies. BEA's Regional Price Parity scores Memphis, TN at 84.0 (national = 100), meaning a dollar in Memphis, TN buys 119¢ — more goods and services than the same dollar nationally.
Local context as of 2026-04-19.
Memphis versus the U.S. baseline
| Metric | Memphis, TN | U.S. baseline | Difference |
|---|---|---|---|
| Median home value[zillow] | $244,084 | $358,000 | -31.8% |
| Median monthly rent[zillow] | $1,435 | $1,850 | -22.4% |
| Property tax (effective)[tax-foundation] | 0.69% | 0.99% | -30.3% |
| State top marginal income tax[tax-foundation] | None | ~4.08% (volume-weighted) | −4.08 pp |
| State cost-of-living index[bea-rpp] | 84.0 | 100.0 | -16.0 pts |
How to use the Income Tax Calculator
Walk through using the Income Tax Calculator with Memphis, TN-specific defaults pre-loaded from primary sources.
- Enter your Memphis numbersFill in the income tax inputs. Defaults reflect Memphis, TN 2026: median home $244,084, median rent $1,435/mo, 0.69% effective property tax.
- Apply the local 2026 inputsThe median home value in Memphis is $244,084 (Zillow ZHVI), with median monthly rent running $1,435/mo.
- Compare against Memphis contextMonthly PITI on the $244,084 median home in Memphis is ~$1,645/mo — vs a $1,435/mo median rent.
How Tennessee Compares to Neighboring States
| State | Median home | Top inc tax | Prop tax rate | RPP (US=100) |
|---|---|---|---|---|
| Tennessee (this page) | $325,000 | None | 0.71% | 92.1 |
| Alabama equivalent | $223,000 | 5.00% | 0.41% | 89.1 |
| see Arkansas | $198,000 | 3.90% | 0.64% | 86.8 |
| check Georgia | $325,000 | 5.39% | 0.92% | 96.5 |
| compare to Kentucky | $205,000 | 4.00% | 0.83% | 89.9 |
Sources: Zillow ZHVI[1], state Departments of Revenue / Tax Foundation[2], Tax Foundation property taxes[3], BEA Regional Price Parities[4].
What Changes Your Result in Tennessee
- No state income tax:Tennessee is on the short list of states with no personal income tax. That does NOT mean no state taxes — sales, property, and excise taxes make up the gap. Check the neighbor comparison for the full carrying-cost picture.
Related Calculations for Tennessee
- how paycheck works for Tennessee residents — paycheck withholding reflects income tax.
- Tennessee tax bracket numbers for 2026 — brackets drive the marginal rate.
- capital gains tax by Tennessee — capital gains can stack into taxable income.
- self-employed tax costs in Tennessee — SE tax is the other piece of a contractor bill.
How Memphis Compares to the National Average
Understanding how Memphis stacks up helps you calibrate your financial planning.
| Metric | Memphis, TN | US Average | Difference |
|---|---|---|---|
| Median Home Price | $244,084 | $420,800 | -42.0% |
| Median Monthly Rent | $1,435 | $1,713 | -16.2% |
| Median Household Income | $64,743 | $74,580 | -13.2% |
| Property Tax Rate | 0.69% | 1.10% | -37.3% |
| Cost of Living Index | 84 | 100 | -16.0% |
Sources: U.S. Census Bureau, BLS, Zillow, NAR (2024–2025). Green = favorable for residents; red = less favorable.
Memphis Financial Snapshot
- Population (Metro)
- 1,360,000
- Unemployment
- 5.4%
- Avg Commute
- 24 min
- Median Age
- 35.4
- Price-to-Rent Ratio
- 14.2x
- Annual Property Tax
- $1,684
More Financial Calculators for Memphis, TN
Income Tax Calculator in Other Tennessee Cities
Frequently Asked Questions — Memphis
- Can median-income households afford the median home in Memphis?
- With a ~$1,645 monthly PITI and $64,743 median income, housing would consume ~30.5% of gross annual income. Qualifying under the 28% DTI rule requires ~$70,500 in annual income. Educational reference only.
- Is it better to rent or buy in Memphis?
- Memphis's price-to-rent ratio (14.2x) tilts toward buying — below 15x, homes are economical relative to renting.
- What is the annual property tax bill on the median home in Memphis?
- Approximately $1,684/yr at the 0.69% effective rate on the $244,084 median home. The national average effective rate is 1.07%.
- What share of median income goes to rent in Memphis?
- The $1,435/mo median rent represents 26.6% of the $64,743 median household income. The recommended housing cost threshold is 30%; Memphis falls within that guideline. Educational reference only.
- How much does commuting cost in Memphis?
- Average commute time in Memphis is 24 minutes per ACS. Estimated annual commute cost runs about $2,700. Educational reference only.
- How does the cost of living in Memphis compare to the national average?
- Memphis's BEA RPP index is 84, 16% below the national baseline of 100. For a household earning the national median income of $77,540, this translates to ~$12,406/yr in purchasing power difference. Educational reference only.
- What is the median home price in Memphis, TN?
- The median home price in Memphis is $244,084 as of 2025–2026.
- What is the average rent in Memphis?
- The median monthly rent in Memphis, TN is $1,435.
- Does the income tax replace professional advice?
- No. This calculator gives educational estimates using public Memphis data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for decisions with material consequences.
Tennessee State Context
Tennessee Real Estate Tips
Tennessee has no state income tax on wages — more take-home pay available for mortgage payments.
THDA (Tennessee Housing Development Authority) offers Great Choice and Homeownership for the Brave programs.
Tennessee's property tax rate of 0.71% is below the national average.
Nashville median home prices ($435K+) are well above the state median of $345K — consider suburbs and satellite cities.
Tennessee Homebuyer Programs
- ✓THDA Great Choice — 30-year fixed mortgages with up to $6,000 DPA.
- ✓THDA Homeownership for the Brave — DPA for military/veterans.
Statewide Tennessee figures apply broadly across Memphis. County- and city-level variation can be significant — verify against local sources before closing a transaction. [3]
How we compute this — methodology
The Memphis page uses local median home price ($244,084), median rent ($1,435/mo), and property tax rate (0.69%) alongside the calculator's client-side formula. Calculations run in your browser — no inputs are sent to a server.
Known limits: ZIP-level variance within Memphis can be substantial — the figures shown are city-wide medians. For a precise property tax quote, consult your county assessor.
Sources
- Zillow Research — ZHVI (Zillow Home Value Index) + ZORI (Zillow Observed Rent Index), city-level. zillow.com/research/data. Retrieved 2026-04-19.
- U.S. Census Bureau — American Community Survey (ACS) 5-year estimates for median household income and population. census.gov/programs-surveys/acs.
- CalcFi state financial context — tips + first-time homebuyer programs compiled from each state's Housing Finance Authority (HFA) public pages. See
src/data/state-financial-context.ts. - Tax Foundation — state property tax effective rates and state/local sales tax rates. taxfoundation.org.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national mortgage rate averages used by mortgage-related calculators. freddiemac.com/pmms.
- State Departments of Revenue — official bracket + deduction publications (one primary URL per state; linked in the brackets table below) — taxfoundation.org/data/all/state/state-income-tax-rates. Retrieved 2026-04-19.
- Internal Revenue Service — federal individual income tax brackets and standard deductions — www.irs.gov/forms-pubs/about-publication-17. Retrieved 2026-04-19.
- Social Security Administration — OASDI / Medicare benefit + contribution rules — www.ssa.gov. Retrieved 2026-04-19.
- BLS Occupational Employment and Wage Statistics (OEWS) — state-level occupational wages — www.bls.gov/oes. Retrieved 2026-04-19.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national mortgage rates — www.freddiemac.com/pmms. Retrieved 2026-04-19.
- NAIC Dwelling Fire, Homeowners Owners, and Homeowners Tenants Insurance Report — content.naic.org/article/homeowners-insurance-report. Retrieved 2026-04-19.
- Bureau of Economic Analysis — Regional Price Parities by State — www.bea.gov/data/prices-inflation/regional-price-parities-state-and-metro-area. Retrieved 2026-04-19.
- U.S. Department of Labor — State Minimum Wage Laws — www.dol.gov/agencies/whd/minimum-wage/state. Retrieved 2026-04-19.
- FRED (Federal Reserve Economic Data) — real median household income, unemployment, HPI, LFPR per state — fred.stlouisfed.org. Retrieved 2026-04-19.
Spot an error? Email [email protected] with the URL and the correct figure.
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National reference: Income Tax Calculator Calculator