Tennessee Side Hustle Tax Guide 2025
Everything side hustlers in Tennessee (TN) need to know about taxes, deductions, and quarterly payments.
Tennessee Tax Overview
No state income tax. Hall Tax on investment income was fully repealed in 2021.
Since Tennessee has no state income tax, your side hustle income is only subject to federal income tax (10–37%) and SE tax (15.3%).
Self-Employment Tax
Every side hustler pays 15.3% SE tax on net earnings — 12.4% Social Security + 2.9% Medicare. You can deduct half from adjusted gross income.
Quarterly Estimated Payments
Federal quarterly payments required if you owe $1,000+ (Form 1040-ES). Due: April 15, June 15, September 15, January 15.
Common Deductions
- Home office ($5/sq ft, max 300 sq ft)
- Equipment and software (Section 179)
- Vehicle (67¢/mile in 2024)
- Health insurance (self-employed deduction)
- Half of SE tax
- Retirement (SEP-IRA or Solo 401(k))
FAQ
Does Tennessee tax side hustle income?
No state income tax. Federal SE tax (15.3%) always applies.
Do I need quarterly payments?
Yes, federal. No state payments needed.
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