Live in Tennessee, Work in Wisconsin: Which State Taxes Your Paycheck?
Answer
The work state takes it. Wisconsin taxes nonresidents on income earned within the state and expects a nonresident return; Tennessee has no wage income tax, so nothing is due there. This is the common pattern for people who live in a no-tax state and commute across the line.
Last verified
Living in a state with no income tax removes the resident return, but it does not shelter income you earn somewhere else. Wisconsin taxes what is earned inside Wisconsin, whoever earns it, and a nonresident return is how that gets settled.
What you file
- 1Nonresident return · WisconsinForm 1NPR
File a Wisconsin nonresident return for the wages you earned in Wisconsin. Tennessee has no wage income tax, so there is no second return and no credit to claim.
The two states, side by side
| Tennessee | Wisconsin | |
|---|---|---|
| Taxes wages | No | Yes — graduated |
| Reciprocity partners | None | 4 (Form W-220) |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Form 1NPR |
| Credit for other-state tax | No income tax | Schedule OS |
| Nonresident safe harbour | Not applicable | Dollar floor published |
| Local income tax | No | No |
| Revenue department | Tennessee Department of Revenue | Wisconsin Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Wisconsin and working in Tennessee gives:Home state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Tennessee → WisconsinNo state income tax on your wages
- 1099 contractor: Tennessee → WisconsinClient state only, if you work there
- Moved mid-year: Tennessee → WisconsinOne part-year return — the state you moved to
Other Tennessee pairs
Questions people actually ask
I live in Tennessee and work in Wisconsin. Which state takes the tax out of my paycheck?
The work state takes it. Wisconsin taxes nonresidents on income earned within the state and expects a nonresident return; Tennessee has no wage income tax, so nothing is due there. This is the common pattern for people who live in a no-tax state and commute across the line.
Which state should my employer be withholding for?
Wisconsin. The wages are sourced to Wisconsin, so Wisconsin withholding is correct and there is no Tennessee withholding to set up, because Tennessee levies no income tax on wages.
How current is this?
The Tennessee and Wisconsin rules on this page were last checked against Tennessee Department of Revenue and Wisconsin Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Tennessee Department of Revenue — individual income taxaccessed 2026-08-07
- Wisconsin Department of Revenue — individual income taxaccessed 2026-08-07