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RSU tax rate in Tennessee: no state tax, federal and FICA still apply

Tennessee has no state RSU tax rate on wages — plan on federal plus FICA, not a TN percentage.

Rates and rules change. Content is reviewed for tax year 2026. Check the last-reviewed date and methodology on each page, then confirm against IRS or state guidance before you file.

State sourcing rules may depend on facts and timing

Which state taxes RSU income depends on residency, work location, grant terms, and vest date, not just where you live on December 31. Day-count splits and flat-rate estimates on this site are planning tools only, not legal sourcing determinations.

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You searched for a Tennessee RSU tax rate and found nothing — or a number that does not match your pay stub — because Tennessee has no state income tax on wages and your real cost is federal plus FICA.

In plain terms

There is no Tennessee state tax rate because Tennessee does not tax wage income for typical residents. Your effective tax rate in Tennessee is federal income tax at your marginal bracket on plus FICA — not a published Tennessee percentage. Federal supplemental may use IRS Pub. 15 flat rates such as 22% on the portion, which is only, not your final federal rate. Moving from a taxing state does not erase prior-state claims on pre-move vests.

Gather before you start

  • TN residence for year.
  • confirmation and pay stub.
  • Prior state if you moved during year.
  • YTD salary for FICA wage base.
  • Federal marginal bracket estimate.

How the tax works

Tennessee has no personal income tax on wages, so there is no Tennessee rate to look up. is federal wage income subject to progressive federal income tax and FICA — that is your entire state-plus-federal wage tax stack for a typical Tennessee resident, minus any prior-state claim on pre-move income.

Federal supplemental on the portion often uses a flat Pub. 15 rate such as 22%. That is payroll , not your final federal . When a large stacks on a Nashville salary of $190,000 or more, your true federal may exceed what was withheld on the check alone.

FICA applies the same in Tennessee as everywhere else. Social Security tax stops after cumulative calendar-year wages hit the SSA wage base; a late-year may show Medicare only on the equity line if salary already consumed the cap. Medicare and possible Additional Medicare Tax apply on full wages without a Tennessee exemption.

Comparing Tennessee to Georgia on rate searches highlights the state difference: Georgia adds progressive state income tax on wages; Tennessee does not for typical residents. The federal and FICA components are identical — plan offers on total effective rate, not a nonexistent Tennessee percentage.

For combined planning, model federal marginal tax on plus remaining FICA, not a Tennessee state line. Use the Tennessee tax guide for residency, relocation, and multi-state detail, and the tax calculator with Tennessee selected plus the gap calculator for federal-only gap estimates.

What to check on your end

  • Pay stub federal and FICA on .
  • rate on confirmation vs marginal bracket.
  • Federal gap calculator output.
  • Move date and prior-state if relocated.
  • Remote work multi-state lines.
  • Box 1 federal wages include .
  • Social Security cap status before .
1 more checklist item
  • Georgia or California comparison if evaluating move.

Googling a Tennessee RSU tax percentage and finding none

That is correct for state tax — Tennessee does not publish an rate because wage income is not state-taxed. Plan on federal plus FICA instead.

What to pull from your files

  • pay stub.
  • Boxes 1, 4, 6.
  • Move records if part-year.
  • confirmation.
  • Prior-state forms if applicable.

Nashville engineer with $35,000 quarterly vest

Illustration only, not your tax situation.

Sam, Tennessee resident on $190,000 salary, vests $35,000 . No TN state on . Federal supplemental applies. Sam's effective rate is federal marginal tax plus FICA — Sam uses tax calculator with Tennessee and gap calculator.

Questions people ask

What is the RSU tax rate in Tennessee?
No TN state rate on wages for typical residents. Effective rate is federal plus FICA based on bracket and YTD wages.
Are RSUs taxed in Tennessee?
Yes for federal and FICA. No state income tax on wages for typical TN residents.
Tennessee vs Georgia RSU tax rate?
Georgia adds state income tax on wages. Tennessee does not for typical residents.
Why federal withholding on Tennessee RSU vest?
Federal tax always applies. Supplemental uses IRS Pub. 15 rates — there is no Tennessee state offset.
Moved from New York — Tennessee rate on post-move vests?
NY may tax pre-move connected income. Post-move TN vests have no TN state income tax — federal and FICA only.

When a CPA is worth it

  • Multi-state with TN and Georgia same year.
  • Employer withheld another state's tax while TN resident.
  • Large with unclear move-date sourcing.
  • Comparing TN offer to California with heavy comp.

Sources and notes

Primary tax claims on this page are supported by the official and secondary sources below. Broker and software links describe reporting mechanics — confirm rules against IRS or state guidance.

No Tennessee state income tax on vest wages; federal and FICA still apply.

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For learning, not filing

VestingTax.com is not a CPA firm or tax preparer. Grants, employers, and states all differ. Use the cited IRS and state sources above, your own documents, and a qualified tax professional before you make decisions from this guide.

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