2026 tax year · Tennessee
Rental host taxes in Tennessee
Airbnb, Turo and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Tennessee that gap is worth $2,252 in tax.
Take a driver who grossed $39,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the rental host page $10,100 comes off and $28,900 is left as taxable profit. That profit is what Tennessee and the IRS charge against.
What that leaves you owing in Tennessee
| Self-employment tax | $4,083 |
| Federal income tax | $861 |
| Tennessee income tax | $0, no state income tax |
| Total tax | $4,944 |
| Effective rate on gross | 12.7% |
Earning more in Tennessee
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Tennessee tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $13,000 | $0 | $13,000 | , | $1,837 | 14.1% |
| Steady side income | $39,000 | $0 | $39,000 | , | $7,196 | 18.5% |
| Full-time | $63,000 | $0 | $63,000 | , | $12,729 | 20.2% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Local taxes on a Tennessee let
The income tax below is only part of it. Short-term lets attract occupancy, lodging or transient taxes levied by the city or county rather than Tennessee, often at rates that dwarf the state income tax. Some platforms collect and remit them; some collect only part; in some places the host is on the hook entirely. That is a local question this calculator cannot answer, and it is the one hosts most often get wrong.
On $28,900 of profit, what the states around Tennessee would charge:
| State | Its tax | vs Tennessee |
|---|---|---|
| Kentucky | $1,012 | +$1,012 |
| Arkansas | $1,050 | +$1,050 |
| North Carolina | $1,153 | +$1,153 |
| Mississippi | $1,156 | +$1,156 |
| Missouri | $1,217 | +$1,217 |
| Virginia | $1,404 | +$1,404 |
| Alabama | $1,405 | +$1,405 |
| Georgia | $1,500 | +$1,500 |
- Kentucky would take $1,012 more, $1,012 against Tennessee's $0.
- Arkansas would take $1,050 more, $1,050 against Tennessee's $0.
- North Carolina would take $1,153 more, $1,153 against Tennessee's $0.
- Mississippi would take $1,156 more, $1,156 against Tennessee's $0.
- Missouri would take $1,217 more, $1,217 against Tennessee's $0.
- Virginia would take $1,404 more, $1,404 against Tennessee's $0.
- Alabama would take $1,405 more, $1,405 against Tennessee's $0.
- Georgia would take $1,500 more, $1,500 against Tennessee's $0.
Rental host tax questions in Tennessee
How much should a Tennessee host set aside?
About 12.7% of gross on the $39,000 example, $4,944 across self-employment tax, federal income tax and nothing to Tennessee. Set aside from each payout rather than finding it in April.
Does the $39,000 on my 1099-NEC match what Tennessee taxes?
No. Tennessee taxes profit, not gross. After $10,100 of deductions the taxable figure is $28,900, so there is no Tennessee tax either way. But the federal side drops by $2,252.