Tennessee minimum wage in 2026 (and 2027)

Federal law sets every Tennessee wage rule

The U.S. Department of Labor's table lists Tennessee as having no state minimum wage law and says employers subject to the Fair Labor Standards Act must pay $7.25. That makes the FLSA the whole rulebook:

1. Base rate: $7.25 an hour.
2. Tipped staff: $2.13 an hour cash, with tips covering the $5.12 tip credit. Any shortfall is yours to pay.
3. Overtime: $10.875 an hour (1.5 x $7.25) after 40 hours in a workweek.
4. New hires under 20: $4.25 an hour during their first 90 days.

Because there is no state statute, a Tennessee business that falls entirely outside the FLSA has no legal minimum. That is uncommon, since the FLSA can cover a worker individually even when the business is small, so treat $7.25 as your floor.

Pay per week, month and year at $7.25

$7.25 x 40 hours = $290.00 a week. $7.25 x 2,080 hours = $15,080.00 a year. $15,080 / 12 = $1,256.67 a month. Tennessee has no state income tax on wages, so federal withholding is the only income tax line on the stub.

Employer taxes on a Tennessee minimum wage job

Tennessee taxes only the first $7,000 of each worker's wages for unemployment, the same base as FUTA. New employers pay 2.7% except in manufacturing, where the rate comes from the experience of NAICS sectors 31 to 33. Workers' compensation is required at 5 or more employees outside construction, and from the first employee in construction. The employee cost calculator runs the same math for other wages.

Tennessee and the states around it

Tennessee is one of a few states with no minimum wage statute, a group that includes Mississippi, Alabama and South Carolina. Kentucky's rate is also $7.25. The pressure on wages comes from three borders: Arkansas pays $11.00 at employers with 4 or more workers, which matters around Memphis; Virginia pays $12.77 and goes to $13.75 in 2027, which matters around Bristol; and Missouri pays $15.00 outside small retail and service businesses. The state minimum wage table has every rate.

Paying Tennessee staff on time

Tennessee expects semimonthly paydays. Final pay is due by the later of the next regular payday or 21 calendar days after the employee leaves. The Tennessee payroll tax page covers registration and the rest of the state's employer rules.

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