Live in Virginia, work in Tennessee
State income tax on wages · single filer · tax year 2026
Tennessee takes
$0
on wages earned there
Virginia takes
$2,689
after the credit it gives
Both together
$2,689
state tax for the year
Cost of the line
$0
a year, above working at home
What crossing the line costs
no work-state taxTennessee has no income tax, so only Virginia taxes this pay. Solid is what you actually pay; the faded part of the Virginia bar is the credit it hands back. State income tax only — federal and payroll tax apply on top, and a city wage tax may too.
Which state taxes you, and what it costs
- People move jobs to Tennessee expecting the tax to disappear. It does not, not while you live in Virginia. Your home state taxes what you earn anywhere, and Tennessee charging nothing simply means there is nothing to set against it. The year comes to $2,689, all of it to Virginia.
- Virginia is one of 9 states sending this many workers into Tennessee, and it sits at number 5 of them, with 14,776 jobs. States used to handling out-of-state workers usually make the filing side of it straightforward.
- Tennessee levies no individual income tax, so a commuter into it is taxed by Virginia alone, on the whole of the wages, at $2,689 for the reference salary. ⛔ The common expectation — that working in a state without an income tax removes the tax — is exactly backwards for a commuter: residence is what gives Virginia its claim, and that claim reaches income wherever it is earned. There is no work-state liability to credit against it, so nothing offsets the Virginia bill. The only version of this that changes the answer is moving.
- Tennessee draws commuters of this scale from 9 states, and Virginia ranks number 5 among them with 14,776 jobs. A work state pulling from that many directions tends to have a well-established non-resident filing routine, which is a practical convenience rather than a tax saving.
Where the money goes
A $75,000 salary
- Federal income tax$7,670
- Social Security and Medicare$5,738
- State income tax$3,552
- Yours$58,041
| Federal income tax10.23% | $7,670 |
|---|---|
| Social Security and Medicare7.65% | $5,738 |
| State income tax4.74% | $3,552 |
| Yours77.39% | $58,041 |
Which rung you are on
A $75,000 salary
| This rung starts at | $66,500 |
|---|---|
| Next rung starts at | $121,800 |
| Room before it | $46,800 |
Federal only, measured on gross pay — so the first rung is what the standard deduction covers.
The arithmetic, step by step
| Tennessee takes, on wages earned there | $0 |
|---|---|
| Virginia charges its residents | $2,689 |
| Less the credit Virginia gives | $0 |
| Total state tax | $2,689 |
| If you also worked in Virginia | $2,689 |
| Difference | $0 |
On a reference salary of $60,000 a year, single filer. Both states run progressive schedules, so the figures do not simply scale — use the tool above for your own salary.
What this page does not cover
- What you see here is state tax between Virginia and Tennessee. Cities can charge their own tax on top, and a handful do. That layer is not modeled on this page, so treat these figures as the floor rather than the final bill.
- Two assumptions sit under this page. First, that Tennessee is where all your pay comes from. Second, that you go there rather than working from your kitchen in Virginia. Mixed income changes how the credit is worked out, and remote days have their own rules in some states.
- The dollars rest on one assumed salary of sixty thousand. Double your pay and they do not simply double, because both states charge more on higher slices of income. What tends to stay put is which side of the Virginia and Tennessee comparison you are on.
- These figures cover the STATE layer only. City and municipal wage taxes sit on top of them and are not included: a commuter into Philadelphia pays its wage tax on top of anything here, and Ohio's municipalities run their own credit system, which this site models in its own families. New York City, by contrast, taxes only its residents, so a commuter into it adds nothing at the city level. Whether Tennessee or Virginia carries a local layer is a separate question from the state arithmetic above.
- The arithmetic assumes all wages are earned in Tennessee and that there is no other income. That matters for the credit: where income comes from several states, Virginia limits the credit to the share of its own tax attributable to the Tennessee portion, computed as a ratio rather than the straightforward cap used above. It also assumes days are worked in Tennessee rather than remotely — several states tax a non-resident's remote days as though they were worked at the employer's location, which reverses the usual expectation and is handled on this site's reciprocity pages.
- Dollar amounts are computed at a stated reference salary of sixty thousand rather than a corridor wage average, which no published source provides per state pair. Because both states' liabilities and the credit between them are functions of the same income, the direction of the Virginia to Tennessee comparison holds at other salaries even though the amounts do not — with one qualification worth stating, that a progressive schedule can change the SIZE of the gap at higher incomes, and in Tennessee's case a bracket crossed on one side and not the other is exactly where that happens.
Questions people ask
Do I pay state tax twice, to Virginia and Tennessee?
Not twice over. Both states have a claim — Tennessee because you earn the money there, Virginia because you live there — but Virginia gives you credit for what Tennessee took. The credit stops at what Virginia would have charged on its own, so what you actually pay is the bigger of the two bills. Here that comes to $2,689 for the year.
Does working in Tennessee cost me anything extra?
Nothing extra, on this route. You end the year owing $2,689, exactly what you would owe if the job were in Virginia. That is not true of every crossing — plenty of them do cost money — but this one does not. What it does cost you is time at tax filing, because two states may each want a return.
Do I have to file tax returns in both Virginia and Tennessee?
Usually yes, and it catches people out. Virginia wants a return because you live there. Tennessee usually wants one too, because you earned money inside it — even in the cases where you end up owing it nothing. Filing in a state and paying it are separate things, and the return is often what proves you do not owe.
What if I work from home in Virginia some days instead of going to Tennessee?
It depends on the state, and the answer is not the one most people expect. You might assume a day worked at your kitchen table in Virginia is taxed by Virginia. Usually that is right, and your Tennessee share shrinks to the days you were actually there. But a few states tax days you work at home as though you had been in the office, unless your employer required you to be elsewhere. It is worth checking which kind Tennessee is before assuming.
How is liability allocated between residence and work state on the same wages?
Both jurisdictions assert a claim on the same wages — Tennessee on a source basis, Virginia on residence. The residence state grants a credit for tax paid to the source state, limited to the residence state's own liability on that income. Net combined liability therefore equals the greater of the two liabilities rather than their sum, $2,689 at the reference salary, and the split between the two treasuries is the only thing the credit changes.
Why is the marginal state-tax cost of this crossing zero?
Marginal cost is zero because the binding liability is the residence state's. Virginia's own charge on this income equals or exceeds Tennessee's, so the resident credit absorbs the source-state tax entirely and combined liability equals residence-only liability, $2,689. ⚠️ Zero marginal tax is not zero obligation: a non-resident return may still be required in Tennessee.
What filing obligations arise in each state on this corridor?
Generally two. Virginia requires a resident return reporting all income; Tennessee requires a non-resident return reporting the income sourced to it, which is also the mechanism by which the resident credit is substantiated. ⚠️ A filing obligation is distinct from a liability: a reciprocity exemption or a zero net position removes tax without necessarily removing the return, and the non-resident return is frequently what establishes the credit claimed on the resident one.
How do remote working days affect sourcing between these two states?
Ordinarily wages are sourced to where the services are performed, so days worked remotely from Virginia fall outside Tennessee's jurisdiction and the source-state apportionment shrinks accordingly. ⛔ The exception is the "convenience of the employer" rule, which several states apply: a non-resident's remote days are sourced to the employer's location unless the remote work is required by the employer rather than chosen by the employee. The figures on this page model in-person attendance in Tennessee throughout.