Cost of Living

Tennessee’s quality of life is high and its cost of living is low.

The Cost of Living Index (COLI) for 14 Tennessee cities rated by the Council for Community and Economic Research rates the cost of living in Tennessee 10 percent less than the national average.

This means that on average, housing, food and groceries, transportation, utilities, health care, and miscellaneous expenses such as clothing, service, and entertainment are 10 percent less than the national average.

Property Tax

Tennessee has no state property tax.  Property taxes are locally determined and collected.

Sales Tax

The Tennessee state tax is six percent on food and food ingredients and seven percent on all other tangible personal property, unless specifically exempted.  There is no tax on prescription drugs.

Tennessee cities and counties have the option of imposing an additional local option sales tax.

Visit the Tennessee Department of Revenue, to obtain more information about Tennessee taxes.

Income Tax

There is no state personal income tax in Tennessee.  However, there is the Hall income tax strictly on interest from bonds and notes and dividends from stock.

Local Tax

Local taxes are set by the local government.