diff --git a/homeassistant/components/template/fan.py b/homeassistant/components/template/fan.py
index 18a7d8262e0..51dce0f8d56 100644
--- a/homeassistant/components/template/fan.py
+++ b/homeassistant/components/template/fan.py
@@ -523,7 +523,6 @@ class TemplateFan(TemplateEntity, FanEntity):
         speed = str(speed)
 
         if speed in self._speed_list:
-            self._state = STATE_OFF if speed == SPEED_OFF else STATE_ON
             self._speed = speed
             self._percentage = self.speed_to_percentage(speed)
             self._preset_mode = speed if speed in self.preset_modes else None
@@ -552,7 +551,6 @@ class TemplateFan(TemplateEntity, FanEntity):
             return
 
         if 0 <= percentage <= 100:
-            self._state = STATE_OFF if percentage == 0 else STATE_ON
             self._percentage = percentage
             if self._speed_list:
                 self._speed = self.percentage_to_speed(percentage)
@@ -569,7 +567,6 @@ class TemplateFan(TemplateEntity, FanEntity):
         preset_mode = str(preset_mode)
 
         if preset_mode in self.preset_modes:
-            self._state = STATE_ON
             self._speed = preset_mode
             self._percentage = None
             self._preset_mode = preset_mode
diff --git a/tests/components/template/test_fan.py b/tests/components/template/test_fan.py
index 2b9059017c6..34dccd7d172 100644
--- a/tests/components/template/test_fan.py
+++ b/tests/components/template/test_fan.py
@@ -246,6 +246,10 @@ async def test_templates_with_entities(hass, calls):
     await hass.async_block_till_done()
     _verify(hass, STATE_ON, None, 0, True, DIRECTION_FORWARD, None)
 
+    hass.states.async_set(_STATE_INPUT_BOOLEAN, False)
+    await hass.async_block_till_done()
+    _verify(hass, STATE_OFF, None, 0, True, DIRECTION_FORWARD, None)
+
 
 async def test_templates_with_entities_and_invalid_percentage(hass, calls):
     """Test templates with values from other entities."""
@@ -274,7 +278,7 @@ async def test_templates_with_entities_and_invalid_percentage(hass, calls):
     await hass.async_start()
     await hass.async_block_till_done()
 
-    _verify(hass, STATE_OFF, SPEED_OFF, 0, None, None, None)
+    _verify(hass, STATE_ON, SPEED_OFF, 0, None, None, None)
 
     hass.states.async_set("sensor.percentage", "33")
     await hass.async_block_till_done()
@@ -299,7 +303,7 @@ async def test_templates_with_entities_and_invalid_percentage(hass, calls):
     hass.states.async_set("sensor.percentage", "0")
     await hass.async_block_till_done()
 
-    _verify(hass, STATE_OFF, SPEED_OFF, 0, None, None, None)
+    _verify(hass, STATE_ON, SPEED_OFF, 0, None, None, None)
 
 
 async def test_templates_with_entities_and_preset_modes(hass, calls):