Tennessee Tax Overview
Tennessee fully eliminated its Hall Tax on interest and dividend income in 2021, making it a true no-income-tax state. The state compensates with one of the highest combined state and local sales tax rates in the nation, averaging over 9.5%. Tennessee has moderate property taxes and no estate or inheritance tax.
Tennessee Tax Quick Facts (2026)
| Income Tax | None |
| Sales Tax (State) | 7.00% |
| Property Tax (Avg Effective) | 0.56% |
| Median Household Income | $63,109 |
| Capital | Nashville |
| Population | 7.1 million |
Frequently Asked Questions About Tennessee Taxes
Does Tennessee have a state income tax?+
No, Tennessee does not impose a state income tax on personal income. It is one of nine US states with no income tax.
What is the property tax rate in Tennessee?+
The average effective property tax rate in Tennessee is approximately 0.56% of assessed home value. On a $300,000 home, that is about $1,680 per year.
What is the sales tax rate in Tennessee?+
The state sales tax rate in Tennessee is 7.00%. Local jurisdictions may add additional sales tax.
What is the median household income in Tennessee?+
The median household income in Tennessee is approximately $63,109 per year.
How does Tennessee's tax burden compare to other states?+
Tennessee's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.