You live or work in Tennessee — Nashville, Memphis, Chattanooga, or remote for a TN employer — and want to know whether RSU vest income triggers state tax. You may be comparing offers with Georgia, Texas, or California.
Start here
What you need before using this
- TN residency documentation for year.
- confirmation and pay stub federal .
- Box 1 and any state wage boxes.
- Move date if you relocated during the year.
- tax calculator with Tennessee selected.
Tennessee tax rules follow Tennessee Department of Revenue guidance. This page covers typical wage income including RSU vests.
Why this happens
Tennessee does not tax personal wage income at the state level for typical residents.
is still federal wage income in Box 1 nationwide.
Federal supplemental on vests uses IRS Pub. 15 rates — not a Tennessee rate.
FICA applies on same as in every state — Social Security up to wage base, Medicare without cap.
Nashville healthcare and tech employers generate questions from employees expecting no state layer.
Moving from California or New York to Tennessee removes state income tax on post-move vests for typical TN residents.
Pre-move vests while still resident of a taxing state may remain connected to that state.
Employer may still show old-state if payroll not updated after move — fix with HR.
Remote TN resident for employer in Georgia or California may have multi-state lines.
No Tennessee state estimated income tax on wages — federal estimated payments may still be needed.
Stock options and follow same TN treatment at state level when TN-sourced wages.
gap for TN residents is often federal-only — still significant at high income.
Bonus and vests stack into higher federal brackets same as other no-tax states.
Compare to Texas and Florida guides for no-tax-state planning.
Hall Tax on investment income was repealed — wages were never Tennessee wage tax anyway.
What to check
- Pay stub: federal and FICA on , no TN state income tax line for typical resident.
- Federal supplemental rate on confirmation.
- Federal gap vs marginal bracket.
- Move date and prior-state if relocated.
- Remote work policy for multi-state sourcing.
- Box 1 includes federally.
- Social Security wage base before large late-year .
- Texas vs Tennessee comparison if choosing between offers.
Assuming Tennessee residency means no RSU tax at all
What to check in your documents
- pay stub federal and FICA lines.
- Boxes 1, 4, 6.
- Move records if part-year other state.
- confirmation .
- Prior-state allocation if multi-state .
Nashville employee after California move
Illustration only, not your tax situation.
Questions people ask
- Does Tennessee tax RSU vest income?
- No state income tax on wages for typical TN residents. Federal tax and FICA still apply.
- Tennessee vs Texas RSU tax?
- Both have no state income tax on wages. Federal and FICA rules are the same — compare offers on other factors.
- Tennessee vs Georgia RSU tax?
- Georgia taxes wages at state rates. Tennessee does not for typical TN residents.
- Moved from California to Tennessee RSU tax?
- CA may tax pre-move connected income. Post-move TN vests avoid TN state income tax.
- Remote worker in Tennessee RSU tax?
- TN resident generally no state tax on wages; employer state may claim if work sourced elsewhere.
- Which calculator for TN RSU?
- tax calculator with Tennessee selected; state comparison vs Georgia or California.
- W-2 state boxes in Tennessee for RSU?
- Often no TN state income tax for pure TN resident. Box 1 still includes federally.
- FICA on Tennessee RSU vest?
- Same nationwide — Social Security and Medicare on as wages.
- Federal withholding on TN RSU vest?
- Federal supplemental still applies — typically flat Pub. 15 rate on portion.
- Related guides?
- tax rate in Tennessee, Texas guide, Florida guide, moving states overview.
When to get help from a tax pro
- Multi-state with TN and another state same year.
- Employer withheld Georgia or California tax while TN resident.
- Part-year residency with large equity income in two states.
- Prior-state audit notice after move to Tennessee.
Related calculators
- RSU Tax Calculator
Model federal and state taxes on your RSU vest, compare withholding to estimated tax, and see what you may keep.
- RSU Withholding Gap Calculator
Focus on the gap between what your employer withholds on RSU vests and what you may owe when everything is reconciled.
- RSU State Tax Comparison Calculator
Run the same RSU vest through different state assumptions to see how location may change estimated tax.
Related pages
- RSU Tax Rate in Tennessee
Tennessee has no state RSU tax rate on wages — plan on federal plus FICA, not a TN percentage.
- Texas RSU Tax Guide
Texas does not impose state income tax on wages, which changes cash-flow planning but not federal RSU tax.
- Florida RSU Tax Guide
Florida does not tax wage income at the state level; focus on federal withholding gaps and any prior-state sourcing.
- Georgia RSU Tax Guide
Georgia taxes RSU vest wages; compare offers and moves with state tax in mind — especially vs Florida neighbors.
- RSU Taxes When Moving States
Moving mid-year can mean more than one state has a claim on part of your compensation — planning beats guessing.
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.
Tennessee does not tax wage income including RSU vest FMV for typical residents.
- Tennessee Department of Revenue — Individual Income Tax
Tennessee Department of Revenue · Official
Tennessee does not tax wage income; overview of individual tax rules.
- IRS Publication 525 — Taxable and Nontaxable Income
Internal Revenue Service · Official
Covers compensation income from stock-based pay, including restricted property under section 83.
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.