Payroll Services in Tennessee: Costs, Taxes and Best Providers (2026)
Payroll services for a Tennessee business cost $44 to $130 per month for 1 to 10 employees at entry-tier list prices as of November 2026, and every major provider files Tennessee payroll taxes. Tennessee has no state income tax, so any entry-tier plan covers it.
Prices verified November 2026
What Tennessee employers must handle
Tennessee has no wage income tax. Employers register with the Department of Labor for unemployment. Simple state for payroll.
| State income tax withholding | No — no state income tax |
| Local or special payroll taxes | None statewide |
| State unemployment insurance (SUTA) | Yes — every state; rate assigned to your business annually |
| Federal (FICA, FUTA, income tax) | Yes — handled by every provider listed |
| Where to register | TN Department of Labor |
Minimum wage, SUTA rates and new-hire reporting deadlines change; check TN Department of Labor for current figures. Every provider on this page files Tennessee payroll taxes.
Payroll prices for a Tennessee business
| Provider (entry plan) | Base / mo | Per employee | 1 emp. | 5 emp. | 10 emp. | 25 emp. |
|---|---|---|---|---|---|---|
| ADP — Essential (quote; est.) | $79 | $5 | $84* | $104* | $129* | $204* |
| Paychex — Flex Essentials (higher tiers quoted) | $39 | $5 | $44 | $64 | $89 | $164 |
| Gusto — Simple | $49 | $6 | $55 | $79 | $109 | $199 |
| OnPay — Payroll Essentials | $49 | $6 | $55 | $79 | $109 | $199 |
| QuickBooks Payroll — Workforce Payroll (Core) | $50 | $7 | $57 | $85 | $120 | $225 |
| Rippling — Platform (required) (higher tiers quoted) | $40 | $8 | $48 | $80 | $120 | $240 |
* Estimate for quote-only providers based on publicly reported quotes; ADP bills per pay run so a weekly payroll costs more. Prices are list prices before promotions.
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Get my quotesBest payroll providers for Tennessee employers
OnPay
Small businesses, farms, nonprofits and restaurants that want the lowest all-in price with no surprise fees, and free white-glove setup.
Gusto
Teams under 50 who want to run payroll themselves in a few clicks and get benefits, 401(k) and HR tools without a sales call.
Paychex
Owners who want a named human to call, businesses considering a PEO later, and anyone bundling payroll with workers' comp or retirement.
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- Prices verified November 2026
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Frequently asked questions
Does Tennessee have state income tax on wages?
No. Tennessee does not tax wage income. Employers still owe federal withholding, FICA and state unemployment tax.
What is the cheapest payroll service in Tennessee?
OnPay and Gusto Simple both list at $49 per month plus $6 per person. Paychex Flex Essentials lists at $39 plus $5 but adds filing fees. Any entry-tier plan handles Tennessee.
Do I need to register my business for payroll in Tennessee?
Yes. Register with TN Department of Labor and with the state unemployment agency before your first payroll. Your provider can file on your behalf but usually needs the account numbers from you.