Tax Planning for Physicians in Tennessee (2026)
Physicians in Tennessee face no income tax on wages on top of the 37% federal bracket and payroll taxes. This guide summarizes the 2026 Tennessee rules that matter most to doctors, dentists and practice owners.
Tennessee income tax rates for 2026
Tennessee does not levy a personal income tax on wages, salaries or self-employment income.
Pass-through entity tax (SALT workaround)
Not applicable. The state does not tax wage or business income for individuals, so there is no state tax to move to the entity level.
Local income taxes
Tennessee physicians generally do not face a separate city or county income tax on wages.
Planning notes for Tennessee physicians
- Tennessee does not tax wages and fully repealed its Hall tax on investment income in 2021.
- Tennessee practices organized as LLCs, corporations and partnerships pay the state franchise and excise taxes, so entity choice still matters even without a personal income tax.
Federal strategies that apply in every state
State tax is only part of the picture. The federal rules drive most of the savings for physicians in Tennessee:
- W-2 physician tax strategies: maximize 401(k)/403(b), 457(b), HSA and the backdoor Roth.
- 1099 physician tax planning: solo 401(k), deductions and the S corporation decision.
- Practice owners: entity, compensation, cash balance plans and exit planning.
- Real estate and cost segregation for physicians with time to participate.
City guides for Tennessee physicians
Local taxes and planning notes for physicians in Nashville, Memphis, Knoxville, Chattanooga. Our planning is delivered virtually, so location does not limit access.
Guides by specialty
Surgeons · Anesthesiologists · Radiologists · Orthopedic Surgeons · Cardiologists · Dentists · Dermatologists · Emergency Physicians · Gastroenterologists · Ophthalmologists · Neurosurgeons · Plastic Surgeons · Psychiatrists · Hospitalists · Pain Management Physicians
Frequently asked questions
What is the Tennessee state income tax rate for physicians in 2026?
Tennessee has no income tax on wages. Physicians there pay federal income tax and payroll taxes, and may owe tax to other states where they work.
Does Tennessee have a pass-through entity tax?
Not applicable. The state does not tax wage or business income for individuals, so there is no state tax to move to the entity level.
Can GenWealth 360 help physicians in Tennessee?
Yes. GenWealth 360 provides tax planning for physicians, dentists and practice owners in all 50 states, including Tennessee, through virtual meetings.
Get a tax plan built for your situation
GenWealth 360 builds proactive, tax-first plans for physicians, dentists and medical practice owners in all 50 states. Start with a conversation about your income, entity and goals.
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Sources
This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.