Taxes in Tennessee: Income, Sales, and Property Tax Guide
Top Income Tax Rate
No Income Tax
Combined Sales Tax
9.6%
Avg Property Tax Rate
0.6%
Median Household Income
$63,109
How Tennessee Compares to National Average
IRS Statistics of Income Data
Average AGI
$51,500
Average Tax Liability
$6,600
Itemized Deduction Rate
22.0%
Avg SALT Deduction
$5,800
Avg Mortgage Interest Deduction
$8,200
Avg Charitable Deduction
$4,800
Source: IRS Statistics of Income (2022 tax year)
What This Means for You
Tennessee is one of the states that does not levy a state income tax. This can mean significant tax savings compared to high-tax states, though Tennessee may compensate through higher sales tax, property tax, or other fees. Consider the full tax picture when evaluating the cost of living.
Frequently Asked Questions
Does Tennessee have an income tax?
No, Tennessee does not have a state income tax.
What is the sales tax in Tennessee?
The combined state and local sales tax rate in Tennessee is approximately 9.6%.
How does Tennessee compare to other states?
Visit our state comparison page or use the Compare tool to see how Tennessee's tax burden compares to neighboring states and the national average.
Related Resources
Data sources: Tax Foundation (2024), IRS Statistics of Income (2022). TaxGrader is not a CPA, tax advisor, enrolled agent, or attorney. This content is for educational and informational purposes only.