Tennessee taxes are low, really low

Mar 15, 2018

MURFREESBORO, Tenn. (OSBORNE)  --  Tennessee ranks again this year as having one of the lowest state tax rates in the nation.

WMOT News reporting partner Wallethub.com says Tennessee has the sixth lowest taxes in the nation. When the numbers are adjusted for cost of living, Tennessee actually moves up three notches to third in the nation.

Credit wallethub.com

The fact that Tennesseans pay no state income tax helps, of course, but analyst Jill Gonzalez says that isn’t the only reason for the low rate.

“Tennessee also has pretty low real estate tax rates, absolutely no vehicle property tax, and on the lower side when it comes to sales and excise taxes as well.”

The only states with lower taxes are Wyoming, Nevada, Montana, Delaware and Alaska. As for states with higher taxes, Gonzalez says it isn’t just coastal residents paying those big tax bills anymore.

“Places like New York, Nebraska, Connecticut, and Illinois, actually, had a 15 percent effective tax rate, almost twice what Tennessee has.”

Wallethub also released a tax survey, asking Americans what they think about the Republican tax overhaul.

"Fewer than four-in-ten people are happy with President Trump’s tax changes. That being said, about a third say that tax reform is his biggest accomplishment. About 60 percent of peole don’t think corporate tax will create jobs.”

You can review the tax study here and the tax survey here. Enjoy!