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Retirement options for gig workers in Tennessee (no state plan)
Your W-2 plan covers your paycheck. Gigaverse covers your hustle.
Status as of Oct 28, 2026.
No state-run auto-IRA
Tennessee does not operate a state auto-IRA. Nothing in state law withholds retirement savings from a 1099 payment. A W-2 employer plan, or a city payroll program where one exists, covers that job's wages. Gigaverse is the layer for the 1099 income beside it, not a replacement for the plan the paycheck already has.
The 50-state status table is the state auto-IRA hub and the mandate tracker.
What the IRS counted in Tennessee, tax year 2023
IRS Statistics of Income Historic Table 2 counts returns, not people. In tax year 2023, Tennessee had 684,340 returns with Schedule C income, 21.0% of 3,259,560 returns in the state. 506,170 returns paid self-employment tax. 21,990 of those claimed the self-employed retirement-plan deduction, a rate of 4.3%. That deduction is the SEP, SIMPLE, or qualified-plan line. It does not measure Roth IRA contributions.
Tennessee self-employment tax
Federal self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security, up to the $184,500 wage base in 2026, and 2.9% Medicare with no cap. Half of that tax is deductible. Tennessee income tax is separate and is in the next section. A state auto-IRA, where one exists, does not replace this federal tax.
Self-employment tax calculator · 1099 estimated tax calculator
Tennessee income tax on 1099 profit
Tennessee does not tax wages or self-employment income. The Hall tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021. Federal income tax and self-employment tax still apply.
Tennessee Department of Revenue, Hall income tax
Federal quarterly estimates are separate from the state. The 1099 quarterly tax calculator uses the federal dates and self-employment tax. State tax guides for Tennessee cities are linked below and from Tennessee local taxes.
A voluntary portable-benefit law, not a state IRA
Tennessee has no auto-IRA and does not tax self-employment income. Senate Bill 1377 was signed on April 3, 2025, assigned Public Chapter 131, and took effect that day. The act is the Voluntary Portable Benefit Plan Act. A hiring party, including an app, may contribute to a plan the contractor chooses. The bill text lists retirement benefits with health, unemployment, disability, and life insurance. Contributions cannot be used to decide whether the worker is an employee, and any withholding from the contractor's pay needs a written agreement the contractor can leave.
Nashville and Memphis drivers are not enrolled by that statute. A platform that never contributes leaves the 1099 worker with the same federal choices as anywhere else: an IRA, a SEP, or a Solo 401(k). The Hall tax repeal does not remove federal self-employment tax.
What a 1099 worker can use in 2026
These limits are federal. They do not change because Tennessee has no state plan. Catch-up contributions are not part of the $72,000 annual-additions cap.
| Account | 2026 limit | Who it fits |
|---|---|---|
| IRA (Roth or traditional) | $7,500, or $8,600 at age 50 or older. The limit is shared across every IRA. | Earned income, including 1099 profit, within the Roth income limits if the account is a Roth. |
| SEP IRA | Generally up to 25% of compensation, and not more than $72,000 of annual additions. | Employer contribution from the business. A sole proprietor's percentage is computed after self-employment tax adjustments. |
| Solo 401(k) | Elective deferral $24,500. Catch-up $8,000 at 50 or older, or $11,250 at ages 60 through 63. Employer contributions share the $72,000 cap with deferrals, before catch-up. | A self-employed worker with no full-time W-2 employees in the plan, who wants both a deferral and an employer contribution. |
Sources: IRS IR-2025-111, Notice 2025-67, IRS 401(k) contribution limits.
Read the Solo 401(k) for self-employed workers page, then run a number in the SEP-IRA contribution calculator. Gigaverse account opening for the Solo 401(k), the SEP and the PRActicle Roth IRA is waitlist only.
Where Gigaverse fits
Gigaverse is not a state program and is not a registered investment adviser. It sits next to a W-2 plan or a state program when one exists. Plans are Free, Pro ($4.99/mo) and Wealth Builder ($9.99/mo). The Solo 401(k), SEP and PRActicle Roth IRA are waitlist only. Gigaverse's published figure is "$5K+" labeled "Avg. tax savings per year, per worker."
City guides and job guides
These are existing local tax pages, not copies of this retirement guide.
Uber drivers · Lyft drivers · DoorDash drivers · Instacart shoppers · Amazon Flex drivers
Questions
Does Tennessee run an auto-IRA for gig workers?
No. Tennessee has no state-run auto-IRA in operation. A W-2 retirement plan, where one exists, covers that paycheck. It does not cover 1099 income. Status as of Oct 28, 2026.
Does Tennessee tax 1099 income?
Tennessee does not tax wages or self-employment income. The Hall tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021. Federal income tax and self-employment tax still apply.
How much can a 1099 worker contribute in 2026?
For 2026 the IRA limit is $7,500, or $8,600 at age 50 or older. A Solo 401(k) elective deferral is $24,500, plus a catch-up of $8,000 at 50 or older, or $11,250 instead at ages 60 through 63. Employer contributions plus deferrals are limited to $72,000 of annual additions, not counting catch-up. A SEP contribution is generally up to 25% of compensation, inside that same annual-additions cap. These figures are from IRS news release IR-2025-111, Notice 2025-67, and the IRS 401(k) contribution-limits page.
What is Tennessee's portable-benefits law?
Senate Bill 1377, the Voluntary Portable Benefit Plan Act, was signed by the governor on April 3, 2025, and assigned Public Chapter 131. It took effect April 3, 2025. A hiring party, including an app, may voluntarily contribute to a portable benefit plan for an independent contractor. The bill text lists retirement benefits as one use, along with health, unemployment, disability, and life insurance. Contributions must not be used to decide whether the worker is an employee. The law does not create a state auto-IRA and does not require a contribution.
Does the Hall tax apply to gig pay?
No. Tennessee repealed the Hall tax on interest and dividends for tax periods beginning on or after January 1, 2021, and it does not tax wages or self-employment income. Federal income tax and self-employment tax still apply.
Sources
Status as of Oct 28, 2026. Verified 2026-10-28.
Educational information only, not tax or investment advice. Gigaverse AI, Inc. is not a bank and is not a registered investment adviser. We are not affiliated with Tennessee, DoorDash, or any state or city retirement program. Contribution limits are set by the IRS and can change.