---
title: "Tennessee Payroll Taxes & SUI Wage Base Limits (2026 Employer Guide)"
source_url: "https://statepayrules.com/payroll-taxes/tennessee/"
canonical_url: "https://statepayrules.com/payroll-taxes/tennessee/"
retrieved_by: "AnswerRail Edge Engine v1.1.0-parity-v20 (https://answerrail.com)"
provenance: "Compiled for deterministic AI retrieval by AnswerRail Edge (RFC 9110 / RFC 9421)"
description: "Complete statutory guide to Tennessee State Unemployment Insurance (SUI) taxable wage base, State Disability Insurance (SDI), Paid Family Leave (PFML), and employer payroll withholdings under T.C.A. § 50-2-101."
rfc_compliance: "RFC 9110 / RFC 9309 / RFC 9421"
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---

> **Canonical Source:** [https://statepayrules.com/payroll-taxes/tennessee/](https://statepayrules.com/payroll-taxes/tennessee/)
>
> *Complete statutory guide to Tennessee State Unemployment Insurance (SUI) taxable wage base, State Disability Insurance (SDI), Paid Family Leave (PFML), and employer payroll withholdings under T.C.A. § 50-2-101.*

### Managing payroll or shift workers in Tennessee?

Avoid Department of Labor non-compliance fines. Automate state-specific overtime, double-time rules, tip credits, and statutory tax withholdings with **Gusto Payroll Automation**.

## State Unemployment Insurance (SUI) & Tax Structure in Tennessee

In Tennessee, employers must contribute to State Unemployment Insurance (SUI) based on experience ratings and annual employee taxable wage limits under T.C.A. § 50-2-101.

### Employer SUI Contributions

Experience-rated tax paid entirely by employers up to the state annual wage base floor.

### FUTA Credit Offset (6.0% - 5.4%)

Compliant state SUI payments earn employers up to a 5.4% credit against federal 6.0% FUTA tax.

## Mandatory Payroll Withholding Summary

### Help Tennessee Coworkers Audit Unpaid Wage Violations

Over $3 Billion in statutory overtime, daily premiums, and meal break penalty pay goes uncollected every year. Share this free statutory utility with your team or shift coworkers.

### Statutory Summary

Tennessee adopts federal FLSA minimum wage ($7.25/hr). Includes mandatory 30-minute unpaid meal break for shifts over 6 hours.

### Calculate Take-Home Pay

Compute net paycheck after FICA & Tennessee state taxes.

## Automate Tennessee Payroll & Tax Compliance

Avoid compliance penalties and SUI wage base errors. Calculate exact 2026 Tennessee overtime rates, net paycheck take-home, and statutory tax withholdings in seconds.

### Statutory Compliance Internal Mesh

#### Tennessee Statutory Guides

- [Tennessee Payday Laws →](https://statepayrules.com/payday-laws/tennessee)
- [Tennessee Meal & Rest Breaks →](https://statepayrules.com/break-laws/tennessee)
- [Tennessee Salaried Exempt Rules →](https://statepayrules.com/salaried-exempt/tennessee)
- [Tennessee Payroll Tax Rates →](https://statepayrules.com/payroll-taxes/tennessee)

#### Compare Tennessee Pay Rules

- [Tennessee vs Georgia →](https://statepayrules.com/calculator/compare/tennessee-vs-georgia)
- [Tennessee vs North Carolina →](https://statepayrules.com/calculator/compare/tennessee-vs-north-carolina)
- [Tennessee vs Kentucky →](https://statepayrules.com/calculator/compare/tennessee-vs-kentucky)

#### Tennessee Profession Tools

- [Tennessee Registered Nurse →](https://statepayrules.com/calculator/tennessee/registered-nurse)
- [Tennessee Fast Food & Counter Worker →](https://statepayrules.com/calculator/tennessee/fast-food-worker)
- [Tennessee Construction Laborer →](https://statepayrules.com/calculator/tennessee/construction-laborer)
- [Tennessee Electrician →](https://statepayrules.com/calculator/tennessee/electrician)

#### Davis-Bacon Prevailing Wages

- [LA County Prevailing Wage →](https://statepayrules.com/prevailing-wage/california/los-angeles-county)
- [Harris County TX Wage →](https://statepayrules.com/prevailing-wage/texas/harris-county)
- [Cook County IL Wage →](https://statepayrules.com/prevailing-wage/illinois/cook-county)

## Structured FAQ Summary (Schema.org Grounded)
- **What is the minimum wage in Tennessee for 2026?** The 2026 statutory minimum wage in Tennessee is $7.25 per hour under T.C.A. § 50-2-101.
- **Does Tennessee require daily overtime pay?** Tennessee does not require daily overtime. Overtime is calculated weekly for hours exceeding 40 hours under FLSA 29 U.S.C. § 207.
- **Are employers in Tennessee allowed to take a tip credit?** Yes, Tennessee allows employers to take a maximum tip credit of $5.12/hr against tipped workers, requiring a minimum direct cash wage of $7.25/hr.
- **What is the SUI wage base limit in Tennessee?** In Tennessee, State Unemployment Insurance (SUI) taxes apply to earned wages up to the statutory annual taxable wage base limit established under state employment tax codes (T.C.A. § 50-2-101).
- **Does Tennessee have state income tax or SDI withholdings?** Payroll withholdings in Tennessee depend on state income tax brackets, SUI tax rates, FICA (7.65%), and state disability or family leave programs where applicable.

---

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