CashHome › States › Tennessee
Best after-tax cash yields in Tennessee
Updated Oct 16, 2026 · By Jeison Cobb
Data as of 2026-10-16 12:30 ET · Tennessee state tax 0% · federal bracket 22%
| # | Account | Yield | After-tax | $ / yr after tax |
|---|---|---|---|---|
| 1 | US T-Bill 52 Weeks US Treasury-backedstate-tax free | 4.47% | 3.49% | $349 |
| 2 | Marcus High-Yield CD (12-mo) Member FDIC | 4.40% | 3.43% | $343 |
| 3 | US T-Bill 26 Weeks US Treasury-backedstate-tax free | 4.36% | 3.40% | $340 |
| 4 | Ally High Yield CD (12-mo) Member FDIC | 4.30% | 3.35% | $335 |
| 5 | US T-Bill 13 Weeks US Treasury-backedstate-tax free | 4.20% | 3.28% | $328 |
| 6 | SoFi Checking & Savings Member FDIC | 4.20% | 3.28% | $328 |
| 7 | LendingClub LevelUp Savings Member FDIC | 4.20% | 3.28% | $328 |
| 8 | US T-Bill 4 Weeks US Treasury-backedstate-tax free | 4.07% | 3.17% | $317 |
| 9 | Bread Savings HYSA Member FDIC | 4.05% | 3.16% | $316 |
| 10 | Capital One 360 CD (1-yr) Member FDIC | 4.00% | 3.12% | $312 |
Min to open / monthly fee come from each provider's own page (see "terms" link); "—" means we couldn't confirm it, so we don't guess. Different federal bracket? Use the full ranking tool.
Get alerts when Tennessee's best rate changes
One short email every Monday: who raised, who cut, and the best after-tax spot for your cash in Tennessee. Free bonus with signup: the state-by-state cash parking cheat sheet (all 51 states, after-tax winners and the bank APY you need to beat a T-bill).
How Tennessee taxes your cash
Tennessee has no state income tax on interest, so bank interest and Treasury interest are taxed the same way: federal only. Pick the highest headline yield you're comfortable with. T-bills have no state-tax edge here.
Right now in Tennessee, the best Treasury option (US T-Bill 52 Weeks, 3.49% after tax) beats the best bank option (Marcus High-Yield CD (12-mo), 3.43% after tax), assuming a 22% federal bracket.
FAQ
What is the best after-tax place for cash in Tennessee?
As of 2026-10-16, the top after-tax yield for a 22% federal bracket in Tennessee is US T-Bill 52 Weeks at 3.49% (4.47% before tax).
Are T-bills taxed in Tennessee?
No. Interest on US Treasury bills is exempt from state and local income tax, including Tennessee's (which is 0% anyway) income tax. It is still subject to federal income tax.
What is Tennessee's state income tax rate on interest?
We use Tennessee's top marginal rate of 0% (Tax Foundation, 2026). Your actual rate may be lower depending on income.
How is after-tax yield calculated?
Bank interest: yield × (1 − federal rate) × (1 − state rate). Treasuries: yield × (1 − federal rate). We assume a 22% federal bracket on this page; use the home page tool to change it.
Weekly rate-change email
Every Monday: who raised, who cut, and the best after-tax spot for your cash.
Or subscribe here.
Other states
Method: bank = yield × (1 − federal) × (1 − state); Treasuries = yield × (1 − federal). Uses the state's top marginal rate (Tax Foundation 2026); ignores local tax and partial-exemption rules for government MMFs. Not financial advice. Back to CashYield home.