Severance Pay in Tennessee: Calculator & 2026 Guide
Calculate your estimated severance package in Tennessee. Tennessee has no state income tax — you keep more of your severance.
Free Severance Pay Calculator
Estimate your severance package based on your salary, years of service, and industry
Tennessee Severance Pay Laws
Tennessee has no state income tax on wages - your severance will only have federal withholding.
How Severance Is Taxed in Tennessee
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| Tennessee State Tax | 0.0% | $0 |
| Total Withholding | 22.0% | $11,000 |
| You Keep | 78.0% | $39,000 |
Tennessee Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in Tennessee
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $16,875 |
| Finance & Banking | 2-4 | $21,635 | $16,875 |
| Healthcare | 1-3 | $14,423 | $11,250 |
| Retail | 0.5-2 | $7,212 | $5,625 |
| Manufacturing | 1-3 | $14,423 | $11,250 |
| Consulting & Professional Services | 2-4 | $21,635 | $16,875 |
| Government | 1-2 | $7,212 | $5,625 |
| Nonprofit | 1-2 | $10,817 | $8,438 |
| Other Industry | 1-3 | $14,423 | $11,250 |
How to Negotiate Severance in Tennessee
In Tennessee, the standard federal WARN Act applies — 60 days notice for layoffs of 50+ employees at companies with 100+ workers.
- ✓ Ask for more weeks: Counter with 50% more than the initial offer
- ✓ Negotiate COBRA: Employer-paid health coverage for 6-12 months
- ✓ Get a written reference: Protect your future career prospects
- ✓ Review non-compete clauses: Negotiate restrictions before signing
- ✓ Consult a lawyer: Employment attorneys often negotiate 2-5x the original offer
Think Your Severance Is Too Low?
Employment lawyers have helped workers negotiate 2-5x their original offers. Get a free consultation.
Tennessee Severance Pay FAQ
Is severance pay required in Tennessee?▼
No, Tennessee does not have a state law requiring employers to provide severance pay. However, the federal WARN Act may require 60 days notice or pay in lieu of notice for large layoffs.
How is severance taxed in Tennessee?▼
Severance in Tennessee is taxed at 22.0% combined — 22% federal supplemental rate. Tennessee has no state income tax, so you keep more. On a $50,000 severance, you'd take home approximately $39,000.
What is the WARN Act in Tennessee?▼
The federal WARN Act applies in Tennessee, requiring employers with 100+ employees to give 60 days advance notice for mass layoffs of 50+ workers. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in Tennessee?▼
This depends on how your severance is structured. Some Tennessee workers can receive both simultaneously, while others may see a delay in unemployment benefits. If severance is paid as a lump sum, it's less likely to delay unemployment than if paid as continued salary. Contact Tennessee's unemployment office for specific guidance.
Major Employers in Tennessee
Severance Pay in Nearby States
📋 Free Severance Negotiation Checklist
The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.