Hate writing that tax check? It could be MUCH worse
MURFREESBORO, Tenn. (WMOT) -- As you write that tax check to Uncle Sam this week it may come as some consolation that, as a Tennessean, you’re paying some of the lowest state and local taxes in the nation.
WMOT’s reporting partners at Wallethub.com have ranked the states with the highest and lowest tax burdens. It turns out Tennessee ranks third from the bottom. Only residents of Delaware and Alaska pay lower taxes.
Wallethub analyst Jill Gonzalez says the fact that Tennessee has no income tax is the primary reason taxes are so low.
“Sometimes when you do see that, you see a very high property tax burden or a sales tax burden. In Tennessee, you see average numbers here across the board. A little bit higher in terms of a sales tax, but because the income tax rate is pretty much non-existent there that really does help it out.”
Gonzalez notes that another reason Tennessee taxes remain so low is that about 40 percent of the state’s annual budget is paid for with federal dollars. For every dollar Tennesseans send to Washington, the state gets a $1.28 back in federal assistance.
Would you like to review the complete Wallethub study?