How TENNESSEE Taxes Retirees

Tennessee is one of the few states with no income tax.  So, right there alone the good folks in Tennessee are going to be taxed very favorably when it comes to retirement. However, sales in Tennessee is the second highest in the nation, clocking in at 9.46% on average when you factor in local sales tax.  But, a high sales tax is the only sore spot for retirees in Tennessee because property taxes are also among the lowest in the country at .75%.  Factor in Tennessee's lower median home value with the low property tax rate and you have a winning scenario for retired home owners.  Overall, Tennessee comes in very favorably for retirees.