Tennessee taxes — property, income, sales, retirement

Home·Tax overview·Tennessee

Property tax, income tax, sales tax, and retirement-income treatment in Tennessee. Quick read for movers, retirees, and remote workers.

No state income tax (eliminated Hall tax). High sales tax (7% base, 9.55% avg with local). Low property. SS + retirement untaxed.
Effective property tax
0.55%
of home value/yr
Income tax (top rate)
0%
Sales tax (state)
7.00%
local adds more
SS taxed by state?
No

Property tax

Tennessee’s effective property tax rate is approximately 0.55% of assessed home value per year. On a $350,000 home that’s about $1,925/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 0%. No state income tax. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 7.00%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Not taxed (no state income tax).

Top cities in Tennessee

Memphis · pop 610,919 · momentum 47

Knoxville · pop 198,722 · momentum 71

Chattanooga · pop 191,496 · momentum 65

Clarksville · pop 185,690 · momentum 69

Murfreesboro · pop 168,387 · momentum 69

Franklin · pop 89,142 · momentum 73

Compare to other states: All 50 state tax overviews · All Tennessee cities · Best Tennessee cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.