Tennessee Tax Climate for RetirementTennessee has a significant program to attract retirees to the state, and thus has a very friendly tax climate for retirement. For starters, Tennessee is one of the few states that does not have a state income tax. Although it used to tax dividends and interest, that was phased out after 2020. Bottom line, as a retiree you will probably be better off tax-wise retiring in Tennessee than almost any other state. For more information go to taxes in Tennessee. |
||
Overall Tax BurdenTennessee's state and local tax burden is one of the lowest in the U.S. The Tax Foundation estimates its total tax burden at 8.3% of income, 44th highest nationally. |
||
Income TaxTennessee no longer has any form of state income tax. |
||
Pension income is not taxedPension income is not taxed. |
||
Property TaxPer capita property taxes are some of the lowest in the U.S. |
||
Sales TaxTennessee charges 7% sales tax, higher than average. On top of that some towns add an additional sales tax. Cigarette and gasoline taxes are lower than average. |
||
