How Memphis take-home pay works
Your Memphis take-home pay is your gross salary minus federal income tax, Social Security (6.2%), and Medicare (1.45%). The calculator subtracts each in order and divides by your pay frequency to show net pay per paycheck.
Take-home = Gross − Federal − FICA (7.65%)
Population: 609,647 city / 1,341,412 metro (Census estimates for July 2025). Memphis is one of the largest US cities and has unique tax rules described below.
Tennessee state income tax
Tennessee has no state income tax, one of nine US states with no personal income tax.
For full Tennessee state tax details, deductions, and exemptions, see the Tennessee Paycheck Calculator.
Take-home pay at common Memphis salaries
Estimated annual net pay for a single filer in Memphis, including federal + state taxes and FICA. Use the calculator above for personalized figures.
| Gross | Annual Net | Bi-weekly | Effective Rate |
|---|---|---|---|
| Loading… | |||
Income vs cost of living in Memphis
Understanding your paycheck in Memphis means looking beyond the gross number, the cost of living here directly determines what your take-home pay actually buys.
| Median household income | $52,679/year |
| Median earnings, people with earnings | $40,071/year |
| Price level, metro area (BEA 2024) | 92.2 (U.S. = 100) |
| Median rent, 1 bedroom | $1,105/month |
| Median rent, 2 bedrooms | $1,195/month |
Income and rent: Census Bureau, American Community Survey 2024 1-year estimates for the city of Memphis. Rent is median gross rent, rent plus utilities, across all renters, long-standing and rent-regulated leases included, so a new lease usually costs more. Price level: Bureau of Economic Analysis regional price parities for the Memphis, TN-MS-AR metro area.
Tax highlight
Memphis is one of the lowest cost-of-living major cities in the US (BEA 2024 price level 92.2, U.S. = 100) with Tennessee's zero income tax. A Memphis logistics or healthcare worker filing single on $55,000 takes home about $46,373, $2,578 a year more than on the same salary in Chicago. FedEx offers competitive salaries with the full no-tax benefit.
Memphis local economy & job market
Memphis is built around FedEx, healthcare, and logistics. FedEx is the anchor, running its massive Memphis SuperHub at Memphis International Airport, one of the world's busiest cargo airports. The FedEx hub drives an entire ecosystem of supply-chain, distribution, and trucking employment. AutoZone is a major employer, and International Paper runs its global packaging business with a large Memphis presence. Methodist Le Bonheur Healthcare and Baptist Memorial Hospital anchor a large healthcare cluster. Nike's massive Memphis Distribution Center is one of its largest globally. Smith & Nephew has a large presence here. ServiceMaster was acquired and reorganized but maintains a significant Memphis presence. The St. Jude Children's Research Hospital is internationally renowned and a major research employer. Memphis has lagged Nashville on growth: Census estimates put the population change from April 2020 to July 2025 at -0.3% for the Memphis metro area and 9.1% for Nashville's. It remains a logistics powerhouse, though recent FedEx restructuring has brought some uncertainty.
Top employers & industries in Memphis
Major employers
- FedEx
- Methodist Le Bonheur Healthcare
- AutoZone
- International Paper
- Nike Memphis Distribution
Key industries
- Logistics & Distribution
- Healthcare
- Manufacturing
- Retail (HQs)
What jobs pay in the Memphis area
Annual wages across the Memphis, TN-MS-AR metro area from the Bureau of Labor Statistics (May 2025). Half of the workers in each job earn between the two figures in the middle column. Bonuses paid as wages are included; stock awards and self-employment are not.
| Occupation | Middle half earns | Median |
|---|---|---|
| All occupations | $36,020 – $70,400 | $46,890 |
| Registered Nurses | $78,900 – $95,780 | $81,500 |
| Software Developers | $98,140 – $139,510 | $125,580 |
| Accountants and Auditors | $62,860 – $95,210 | $76,960 |
| Elementary School Teachers, Except Special Education | $52,680 – $64,590 | $61,510 |
| Electricians | $48,310 – $76,680 | $60,890 |
| Heavy and Tractor-Trailer Truck Drivers | $49,130 – $76,690 | $63,070 |
| Retail Salespersons | $28,110 – $37,080 | $32,580 |
| Logisticians | $51,550 – $90,130 | $71,230 |
| Medical and Health Services Managers | $88,760 – $155,990 | $112,800 |
Source: BLS Occupational Employment and Wage Statistics, May 2025, for the whole metro area. Use the calculator above for take-home pay at any of these salaries.
Memphis housing market
Memphis has among the lowest home values of any major US city: the median value of owner-occupied homes was $209,800 in 2024, as owners estimate it (Census Bureau), a fraction of coastal city prices. Germantown and Collierville (eastern suburbs) are wealthy enclaves with home values well above the city median and the region's top schools. Midtown and downtown Memphis have gentrified with restored craftsman homes. East Memphis (Park Ave/Poplar corridor) is the established middle-income area. Suburbs in DeSoto County (Mississippi, just south) and Mississippi-side commuter towns offer even lower costs with similar Memphis-area access. Property taxes take a larger share of home value than elsewhere in Tennessee: the median property tax bill is $1,947, about 0.9% of the median home value, against 0.4% for Tennessee as a whole (Census Bureau, 2024), partly offsetting low home prices. Floods are rare (Mississippi River levees protect city center) but wind/severe storm events occur. Memphis's housing market has been stable, not the boom-bust volatility of Nashville. Inventory is relatively high, giving buyers leverage.
Commute & transportation in Memphis
Memphis is car-dependent. MATA operates buses with limited coverage. The mean one-way commute was 21 minutes in 2024 (Census, workers who don't work from home). I-40, I-240, and I-55 are main arteries. Traffic is mild compared to larger metros. FedEx's massive hub at Memphis International Airport operates round-the-clock, supporting significant freight and logistics employment.
Notable neighborhoods in Memphis
Memphis tax nuances you should know
Memphis benefits from Tennessee's no-state-income-tax (including for retirement income, capital gains, and Social Security). The Memphis combined sales tax is 9.75%, higher than Nashville's 9.25% and among the highest in the US. Tennessee taxes groceries at a reduced 4% state rate, but the local rate still applies on top. Property tax is high for Tennessee: the median property tax bill in Memphis is about 0.9% of the median home value, against 0.4% statewide (Census Bureau, 2024). The city of Memphis itself adds another property tax layer. FedEx employees often have unique compensation structures including stock-based comp that's federally taxable but TN-tax-free. Many Memphis-area workers live in Mississippi (DeSoto County) where Mississippi income tax (4% in 2026) applies, but the savings on housing more than offset Mississippi's tax for many. Memphis's location at the corner of Tennessee, Mississippi, and Arkansas creates unusual cross-border tax planning opportunities for some workers.
Memphis paycheck & tax tips
- Maximize pre-tax deductions: 401(k) contributions (up to $24,500 in 2026), HSA ($4,400 single / $8,750 family), FSA ($3,400) and commuter benefits (up to $340/month) all reduce your taxable income before federal income tax is calculated.
- Check your W-4 withholding: After major life changes (marriage, a new dependent, second job), update your W-4 to avoid owing a large tax bill or over-withholding. Use our W-4 Calculator to find the right allowances.
- Pay frequency matters: Bi-weekly earners get 26 paychecks per year (2 months with 3 paychecks). Budget based on monthly income, not per-paycheck amount, to avoid surprises in 3-paycheck months.
- Track FICA limits: Social Security (6.2%) only applies to the first $184,500 of wages in 2026. Once you cross that threshold, your paycheck increases by roughly 6.2% for the rest of the year, plan ahead if you depend on that boost.
- Self-employed in Memphis? You owe the full 15.3% self-employment tax (employee + employer FICA portions) instead of 7.65%. The calculator above shows employee-side FICA, self-employed workers should add the employer half when budgeting.
Who should move to Memphis?
Memphis is the right move for: FedEx employees and others in the logistics/supply-chain ecosystem; healthcare workers attracted to St. Jude, Methodist, or Baptist; first-time homebuyers seeking maximum affordability (median home value $209,800 in 2024); musicians and artists drawn to the blues, rock, and soul music heritage; corporate professionals at AutoZone, International Paper; retirees seeking minimal cost of living + no state tax. Less ideal for: tech-career-focused workers (small tech ecosystem); those uncomfortable with Memphis's higher crime rates compared to most peer cities; or anyone needing a vibrant nightlife (Memphis is more low-key than Nashville). Memphis offers some of the best dollar-for-dollar value in any US metro, especially for healthcare and logistics professionals.
Memphis paycheck frequently asked questions
How much take-home pay does a $55,000 salary provide in Memphis?
A single filer earning $55,000 in Memphis takes home about $46,373 a year after federal income tax and FICA. No state income tax applies. BEA's 2024 price level for the Memphis metro is 92.2 (U.S. = 100), so $55,000 there buys about what $59,667 does at average U.S. prices.
What does FedEx pay in Memphis?
FedEx pays across a wide range in Memphis, from hourly package handlers to operations managers, IT and engineering roles, and senior executives. For the Memphis metro area as a whole, BLS figures (May 2025) put the middle half of logisticians at $51,550–$90,130, heavy and tractor-trailer truck drivers at $49,130–$76,690 and software developers at $98,140–$139,510. All compensation is received with zero Tennessee state income tax, enhancing the effective value versus similar roles at companies based in high-tax states.