Although the past few weeks have been tough for Tennessee in the news, following the horror in Nashville, the state has a lot going for it – from the blues, jazz and BBQ of Memphis to the country twang and tourist attractions of Nashville, to the honky-tonk amusement park of thrills of Dollywood in Pigeon Forge
But Tennessee has something else going for it, which makes it a favorite spot of retirees – No Income Tax and No Property Tax Over 65 (Tennessee voters approved that property tax freeze for seniors in 2006). The Volunteer State joins Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington and Wyoming, as states that don’t pile on their own tax after the federal government takes its share.
BetTennessee.com – your source for Tennessee sports betting – analyzed the best states to avoid tax burdens, utilizing TaxFoundation.org.
The total tax burden of the state is recognized by including the 2022 Property Tax Burden, 2022 Individual Income Tax Burden and 2022 Total Sales Tax Burden for each state.
BetTennessee.com takes a break from info on Tennessee sports betting apps to give readers perspective beyond wagering.
Unsurprisingly, the states with no income tax fare well our chart.
Tennessee generates tax revenue with its state sales tax of 7%, although local areas can add on an additional sales tax of no more than 2.75%. With a 2022 effective property tax rate of .71%, Tennessee had the 15th lowest property tax rate, according to WalletHub, with the average Tennessee homeowner paying approximately $900 less than the average U.S. homeowner.
With no state income tax, cheaper land and construction costs compared to many places, low property taxes and property tax forgiveness for seniors, Tennessee is a good state for earners who want to keep more of their money.
It is not, however, the best state to earn money, as it’s never raised the federal minimum wage, which still sits at $7.25 an hour. The average salary in Tennessee is a little more than $50,000 per year. In 2019, Tennessee ranked 42nd in the country by median household income, with its $56,071 about $9,000 below the U.S. average and its poverty rate ranks 12th, at 13.6%. Also, if you have young children, Tennessee ranks 45th in funding schools, according to the Education Data Initiative. Tennessee also hasn’t expanded Medicaid under the ACA, so it’s not all whiskey and moonpies.
The gist of the data is that if you have money or have a job where you make money, Tennessee is a good place to live in terms of holding on to that money. If you need to make money, or require public assistance, Tennessee’s lack of a state income tax and low property tax rates won’t help you much.
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