Tennessee (TN) – 2021

Tennessee Effective 7/24/2009 Federal Effective 7/24/2009

Minimum WageTennesseeFederal
Minimum Wage$7.25*$7.25
Minimum Cash Wage (Tipped Employee)$2.13*$2.13
Maximum Tip Credit$5.12*$5.12
Youth Minimum Wage$4.25*$4.25
State Income TaxTennesseeFederal
Wage WithholdingNone
Supplemental Wage / Bonus RateNone
Unemployment InsuranceTennesseeFederal
Maximum 2021 Taxable Earnings (Unchanged from 2020)$7,000
Employee 2021 DeductionNone
Employer 2021 Tax Rates(Effective 1/1/21 – 6/30/21)0.01 – 10.0%
Standard FY2021 New Employer Rate2.70%
Voluntary Contribution PermittedNo

Federal (FED) – 2021

Minimum WageFederal
Minimum Wage$7.25
Minimum Cash Wage (Tipped Employee)$2.13
Maximum Tip Credit$5.12
Youth Minimum Wage$4.25
FICA (MEDICARE)Federal
Maximum Taxable EarningsNo Limit
Medicare Rate1.45%
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)0.90%
FICA (SOCIAL SECURITY)Federal
Maximum Taxable Earnings (Increased from $137,700 in 2020)$142,800
Employee / Employer Tax Rate (Unchanged from 2019)6.20%
FUTA (EMPLOYER-PAID)Federal
Maximum Taxable Earnings$7,000
Percent of Taxable Wages6.00%
Maximum Credit5.40%
Normal Net Tax0.60%
Health Savings AccountsFederal
Self-Only Contribution Limit (Employee / Employer) (Increased from $3,550 in 2020)$3,600
Family Contribution Limit (Employee / Employer) (Increased from $7,100 in 2020)$7,200
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2020)$1,000
Pension PlansFederal
Contribution Limit – 401(k) & 403(b) plans (Unchanged from 2020)$19,500
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019)$6,500
Supplemental Wage / Bonus RatesFederal
Flat Rate Withholding Method (Unchanged from 2020)22%
Pay over $1 Million (Unchanged from 2020)37%

Tennessee State Resources

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