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Crypto & tax · TN

Tennessee Crypto Tax Calculator

Estimate your 2026 federal and Tennessee state tax on crypto capital gains, with FIFO, LIFO, or HIFO cost basis.

Cost-basis method — changes which lots are sold
Transactions4
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Estimated tax owedFIFO
$1,860
short-term gains$3,000
long-term gains$8,000
short-term tax$660
long-term tax$1,200
TN state tax$0
total gains
$11,000
estimated tax
$1,860
effective rate
16.9%

Tennessee charges no state tax on a $10,000 crypto gain. Tennessee does not tax personal income, so crypto gains are not taxed at the state level. Federal capital-gains tax still applies.

Only federal capital-gains tax applies, so the rate turns entirely on how long you held: short-term gains are taxed as ordinary income, long-term at 0%, 15% or 20%. Figures use 2026 Tennessee rules and 2026 federal rules, single filer. Holding period decides the federal rate.

Crypto capital-gains tax in Tennessee

Tennessee's status as a no-income-tax state is recent, and the tax it shed had a name and a birthday. The Hall income tax, enacted in 1929 and named for the state senator who sponsored the legislation, never touched wages — it was imposed only on interest from bonds and notes and dividends from stock. The General Assembly then phased it out a percentage point at a time: 4% for tax years beginning in 2017, 3% for 2018, 2% for 2019, and 1% for 2020, with the Department of Revenue now instructing filers not to submit a return for any tax year beginning on or after January 1, 2021. In its place the sales tax does the heavy lifting, at a general state rate of 7% before local rates are added, and it accounts for roughly 60% of all state tax collections.

Tennessee's former Hall Tax on interest and dividends was fully repealed as of 2021, so investment income and capital gains — including crypto — are untaxed at the state level.

Common questions

Does Tennessee tax crypto gains?
No. Tennessee levies no individual income tax for 2026 and has no separate capital-gains tax, so selling crypto is a federal-only taxable event there. Tennessee funds itself through high state and local sales taxes.
How much Tennessee tax would a $10,000 crypto gain cost?
Nothing at the state level. Stacked on Tennessee's $75,860 median household income (2024), a $10,000 gain adds $0 of Tennessee tax; the federal bill is the only one that changes.
What do I owe when I sell crypto in Tennessee?
Federal tax only: short-term gains at your ordinary federal rate, long-term gains at the federal 0%, 15% or 20% rates. The same $10,000 gain on top of a $75,860 income would cost roughly $495 in state tax in the typical income-taxing state.

How we calculate this

Federal lot-matching per our crypto-tax methodology, plus Tennessee's 2026 state treatment of capital gains. Estimates only — not tax advice.

Tax Foundation: 2026 state individual income tax rates and brackets (Tennessee - no individual income tax) →Tennessee Dept. of Revenue →

More on Tennessee tax

Everyday moneyWhat lands in a Tennessee paycheckThe same salary split across real pay periods, with federal tax and FICA taken out and no state line at all.Everyday moneyWhy Tennessee takes no income taxWhat a Tennessee filer owes for the year when the state schedule is empty, and how the state funds itself instead.
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Estimates for general informational purposes only; not tax advice. Crypto tax rules are complex and Tennessee state treatment is simplified here — verify with the state Department of Revenue and a tax professional. Tennessee has no state income tax, so there is no state schedule to simplify — this calculator covers what comes out of your pay, not the high state and local sales taxes that Tennessee relies on instead.