Calculate your quarterly estimated tax payments as a self-employed worker in Tennessee. Includes self-employment tax (15.3%), federal income tax, and Tennessee state income tax. 2026 tax year.
Last updated: April 2026 · Data: IRS, BLS, state sources
Estimates based on 2025 tax year (2026 filing) brackets. Consult a tax professional for your specific situation.
Tennessee does not tax wages or self-employment income. Self-employed Tennessee residents only owe federal income tax and SE tax. Tennessee's no-income-tax status makes it very attractive for self-employed workers and business owners.
| Tax Component | Rate / Detail |
|---|---|
| Self-Employment (SE) Tax | 15.3% on 92.35% of net profit |
| Social Security portion | 12.4% (on first $176,100 of net earnings) |
| Medicare portion | 2.9% (no income cap) |
| SE Tax Deduction | Deduct half SE tax from gross income |
| Federal Standard Deduction (Single) | $15,000 (2025 tax year) |
| Tennessee State Income Tax | None (no state income tax) |
| Quarterly Due Dates | Tennessee has no state income tax on wages or self-employment income. The Hall Tax on investment income has been fully repealed. Only federal quarterly estimated taxes apply. |
| Example: $60K Net Profit (Single) | ~$3,282/quarter estimated |
You must pay quarterly estimated taxes if you expect to owe at least $1,000 in federal tax for the year (after withholding and credits). This includes: freelancers, independent contractors, sole proprietors, LLC members, partners, and S-corp shareholders who take distributions. Employees with a side business earning $400+ in net SE income should also pay quarterly on that income.
Tennessee has no state income tax on wages or self-employment income. The Hall Tax on investment income has been fully repealed. Only federal quarterly estimated taxes apply.
The SE tax rate is 15.3% - 12.4% Social Security plus 2.9% Medicare. It's calculated on 92.35% of your net self-employment income (the 7.65% reduction accounts for the employer-side deduction). For income above $176,100, only the 2.9% Medicare rate applies (no Social Security cap). An additional 0.9% Medicare surtax applies above $200,000 (single) or $250,000 (MFJ).
To avoid the IRS underpayment penalty (currently 8% APR), pay whichever is less: (1) 90% of your current year tax, or (2) 100% of last year's tax (110% if last year AGI was over $150,000). Paying last year's tax amount is the "safe harbor" method - simple and reliable. Most self-employed workers set aside 25-30% of each payment received and pay quarterly.
Federal quarterly taxes: Pay online at IRS.gov/payments (IRS Direct Pay, credit/debit card, or EFTPS). You can also mail Form 1040-ES with a check. Tennessee state quarterly taxes: Pay through Tennessee's Department of Revenue website. Set up EFTPS for federal payments - it's free and tracks your payment history.