Before you start

An SSN or ITIN
Form W-4 with your employer for federal withholding — there is no Tennessee equivalent
Records of foreign income and foreign financial accounts
For owners: an understanding that the city and county bills arrive separately

Step-by-step

1
Complete the federal W-4 on day one
There is no Tennessee withholding form because there is no Tennessee income tax. Getting the federal W-4 wrong is the only withholding mistake available to you here, and it is still the most common cause of an April surprise.
Via employerWho: YouFirst week of employment
2
Determine your US tax residency
The substantial presence test counts weighted days over three years to decide whether the US taxes your worldwide income or only US-source income. Your visa type does not decide this.
OnlineWho: You
3
Check for an applicable tax treaty
The US has treaties with around 70 countries that can reduce or exempt tax on particular income. In Tennessee there is no state layer at all, so the federal treaty position is the entire answer.
OnlineWho: You
4
File the federal return by 15 April — and nothing else
The tax year is the calendar year. There is no Tennessee individual return and no municipal one, which makes this one of the simplest filing positions of any US city.
OnlineWho: YouBy 15 April annually
5
If you buy, expect two property tax bills
Shelby County bills its rate and the City of Memphis bills its own, and a property inside the city limits pays both. For 2026 that is roughly $2.70 and $2.58 per $100 of assessed value respectively. Tennessee assesses residential property at 25% of appraised value, so the combined effective burden is on the order of 1.3% of market value a year.
OnlineWho: You
6
File an FBAR if foreign accounts exceed $10,000
Aggregate foreign account balances over $10,000 at any point in the year trigger a FinCEN filing, separate from your tax return. Living in a no-income-tax state changes nothing about this federal obligation.
OnlineWho: You

Documents you’ll need

Form W-2 from each employer, issued by 31 January
Form 1099s for freelance, interest and investment income
Passport and travel history for the substantial presence day count
Foreign account statements for FBAR reporting
For owners: the separate county and city property tax notices

Things most newcomers don’t know

Tennessee taxes groceries, which most states do not.

Food and food ingredients are taxed at a reduced state rate plus the full local rate, rather than being exempt. On a 9.75% headline rate that makes the weekly shop noticeably more expensive than in a state that zero-rates food, and it is the reason the 'no income tax' saving is smaller in practice for a lower earner than the headline suggests.

Source: Tennessee Department of Revenue — sales and use tax

The single-article rule makes big purchases cheaper than the headline rate.

Tennessee applies the local option portion of sales tax only to the first slice of the price of a single article, with a separate state single-article rate above that. So a car or a sofa is not taxed at a flat 9.75% all the way up. Check the Department of Revenue's single-article page for the current thresholds before budgeting a large purchase.

Source: Tennessee Department of Revenue — local sales tax and single article

The no-income-tax saving is paid for by property tax, and Memphis pays the most of it.

A property inside the city limits carries both Shelby County's rate and the City of Memphis's, and the combined rate is the highest among Tennessee's large cities. If you are comparing Memphis with Nashville on the strength of a shared 'no state income tax', the property side is where the two diverge sharply.

Source: Shelby County Trustee

Your visa does not determine your tax residency.

The substantial presence test — a weighted day count across three years — decides whether the US taxes your worldwide income. Someone on a short visa can be a US tax resident; someone on a long one can fail the test. Getting this wrong is expensive in both directions.

Source: IRS — substantial presence test

Common mistakes to avoid

Budgeting the weekly shop as tax-free because most states exempt food — Tennessee does not.
Comparing Memphis with Nashville on income tax alone and ignoring the property tax gap.
Buying inside the city limits and budgeting for only one of the two property tax bills.
Assuming your visa type settles your US tax residency.
Missing the FBAR because a home-country account did not feel 'foreign'.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.