1099 Quarterly Taxes in Tennessee (2025-2026)
If you're self-employed in Tennessee — freelancer, contractor, gig worker, or single-member LLC — your tax burden is entirely federal. Tennessee levies no personal income tax, which makes it one of the most tax-friendly states for self-employed Americans. You'll still owe federal income tax plus the 15.3% self-employment tax, but you skip the state filing entirely.
Tennessee state income tax (2025)
0%. Tennessee is one of nine states without a personal income tax (the others: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). Self-employed Tennessee residents file a federal return (Form 1040 + Schedule C + Schedule SE) but no state income tax return is required for personal 1099 income.
Quarterly payments — federal only for Tennessee residents
Federal estimated tax due dates apply nationwide:
- Q1 — April 15, 2026
- Q2 — June 16, 2026
- Q3 — September 15, 2026
- Q4 — January 15, 2027
Pay through IRS Direct Pay (irs.gov/payments) for free bank transfers, or mail Form 1040-ES with a check.
Tennessee-specific quirk freelancers miss
Tennessee fully eliminated the Hall Tax (which previously taxed interest and dividends) in 2021. As of 2025, Tennessee has 0% tax on all forms of personal income — wages, freelance, interest, dividends, capital gains. The state has the second-highest combined sales tax in the US (9.55%).
Common federal deductions for Tennessee freelancers
Without a state return, your only itemization layer is federal. The deductions that matter most:
- Standard business expenses — software, contractors, supplies, professional services.
- Home office — simplified ($5/sq ft up to 300 sq ft) or actual percentage of rent/utilities.
- Mileage — $0.70/mile in 2026 (business use).
- Half of SE tax — federal above-the-line deduction.
- QBI deduction — 20% of qualified business income, federal.
- SEP-IRA / Solo 401(k) — major shelter for high-income freelancers.
- Self-employed health insurance premiums — fully deductible if no W-2 spouse coverage.