4. Tennessee
- State Income Tax Range: 1 percent on interest and dividends
- The Average Combined State and Local Sales Tax Rate: 9.55 percent
- The Median Property Tax Rate: around $636 per $100,000 of assessed home value
Although there’s no broad-based income tax here, interest and dividends are actually are taxed at 1 percent. The first $2,500 for those who file jointly and $1,250 for those who file as individuals are exempt from the 1 percent tax.
However, 2020 will be the last year when Tennessee’s residents have to pay this tax. When we turn our heads to property taxes, we find another great reason to move to the Volunteer State.
But, its average combined state and local sales tax rate is a nightmare.
