Knoxville, TN Salary Guide: The Real Value of a $100,000 Income

You see the number $100,000 on a job offer. In New York City, that’s barely scraping by. In San Francisco, it’s a struggle. But in Knoxville, Tennessee, the math changes entirely.

This guide breaks down the actual purchasing power of a six-figure salary in East Tennessee, stripping away the hype to show you exactly where your money goes.

The Verification Test ($100,000 Analysis)

Let’s run the numbers. A "sticker price" salary of $100,000 looks great on paper, but the government always gets its cut first. Here is the reality of your gross vs. net income based on 2026 IRS projections and FICA mandates.

• Sticker Price: $100,000
• Federal Tax: -$13,614
• FICA Tax: -$7,650
• State Tax: -$0
• Local Tax: -$0

Total Take Home Pay: $78,736

The Analysis:
You lose roughly 21% of your income to federal obligations immediately. However, the critical factor here is the State Tax delta. In a high-tax state, you could lose another $5,000 to $7,000 just to the state treasury.

In Knoxville, that money stays in your pocket. Your annual take-home pay is $78,736, or $6,561 per month. This is your raw fuel for lifestyle and wealth creation.

Smart Budget Breakdown (50/30/20 Rule)

With a monthly net of $6,561, you have significant maneuvering room. We apply the standard 50/30/20 rule to see how a single earner navigates the Knoxville market.

Needs: $3,281/month

This bucket covers rent, utilities, groceries, and insurance.

• The Rent Reality: The average one-bedroom apartment in Knoxville currently runs between $1,200 and $1,500. Let’s budget $1,400.
• Utilities & Internet: ~$200.
• Groceries: ~$450.
• Transportation: ~$400 (Gas/Car Insurance).
• Remaining Buffer: ~$831.

Verdict: You can afford a decent apartment in a safe neighborhood (like West Hills or North Knoxville) without roommates and still have nearly $1,000 left over for emergencies or car maintenance.

Wants: $1,968/month

This is your discretionary spending.

• Dining & Nightlife: Knoxville has a booming craft beer and food scene. You can hit the Old City or Market Square frequently.
• Entertainment: Tickets to Vols games, concerts, and gym memberships.

Verdict: This is a high "Fun" budget for the region. You are not priced out of entertainment.

Savings: $1,312/month

This is where the wealth is built.

• $1,312/month equals $15,744 per year.

Verdict: You are maxing out a Roth IRA ($7,000 limit) with room to spare, or aggressively paying down student loans/mortgage principal. This savings rate is the engine of financial independence.

Knoxville Taxes vs. The Competition

To understand the value of the Tennessee tax structure, you have to look at the alternatives. If you earned $100,000 in a high-tax metro area, your "Needs" bucket would evaporate instantly.

Location	State Income Tax	Est. Monthly Net (after taxes)	Rent for Comparable Apt	Disposable Income Remaining
Knoxville, TN	$0	$6,561	$1,400	$5,161
Austin, TX	$0	~$6,561	~$1,700	~$4,861
New York, NY	6.5% ($4,200/yr)	~$6,211	~$3,200	~$3,011

The Verdict:
While Texas also has no state income tax, Knoxville's rent is significantly lower than Austin's. Compared to New York, Knoxville allows you to keep $3,550 more per year in pure state tax savings, plus a massive discount on housing. The "Knoxville Advantage" is real.

Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Knoxville?
A: 0%. Tennessee has no state income tax on wages. You pay only Federal income tax and FICA (Social Security/Medicare).

Q: Is $100,000 a good salary in Knoxville?
A: Yes. The median household income in Knoxville is roughly $55,000. Earning $100,000 puts you in a high-earning bracket for the area, granting you a lifestyle that would require $200,000+ in major coastal cities.

Q: Does Knoxville have a local city tax?
A: No. As of recent legislation, Tennessee municipalities generally do not levy a local income tax on wages.

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Disclaimer: This guide uses IRS 2026 tax brackets (projected), Bureau of Labor Statistics (BLS) expenditure data, and Tennessee State Comptroller statistics. Figures are estimates for a single filer taking the standard deduction.