Taxes in Tennessee????? (Nashville-Davidson, Murfreesboro: sales, house, buying)

[Mrk9]

I just read an article on MSN that has to do with State Income Taxes. I was under the impression that there was no SIT in Tennessee as is the case in Wyoming. Has something changed in your fair state?

[rossc]

There is no state income tax. I think there is tax on interest and dividends.

[alleycat]

Originally Posted by Mrk9

I just read an article on MSN that has to do with State Income Taxes. I was under the impression that there was no SIT in Tennessee as is the case in Wyoming. Has something changed in your fair state?

There is no income tax on ordinary wages. There is an income tax on non-IRA/non-401k investment income such as dividends; it's been on the books for years. Altogether it's a rather strange piece of legislature.

[Mrk9]

Cool 'cuz I hate paying any more taxes than I have to. In Wyoming we pay sales tax but not on groceries @ 5%. No state income tax even on Dividends. Just federal. Our Property taxes are a little less than Tennessee. For example we pay $1500.00 a year on a 2400 sq ft home that is valued @ $200k witin city limits. How does that compare? We would consider buying a second home in Nashville if the property taxes are not to outrageous.

[alleycat]

Metro Nashville itself has two main property tax rates, depending on whether the property is located within the Urban or General Service District. There are also different rates for property located in certain incorporated towns within Davidson County.

Tennessee property tax rates are bases on 25% of actually value. These are the property tax rates for Tennessee for 2008: TN Comptroller of the Treasury - Division of Property Assessments - 1998 Property Tax Rates (http://www.comptroller1.state.tn.us/PAnew/LR.asp?W=98 - broken link)

Overall, Tennessee is usually considered one of the lower tax states (generally listed as something like 10th lowest), but, like every place, there are taxes.

I wouldn't suggest anyone move to Tennessee just because the taxes might be lower, but just add it into the mix of both good and bad things about Nashville and Tennessee. There are a lot of other things to consider besides taxes.

[Mrk9]

Originally Posted by alleycat

County.

Tennessee property tax rates are bases on 25% of actually value. These are the property tax rates for Tennessee for 2008: TN Comptroller of the Treasury - Division of Property Assessments - 1998 Property Tax Rates (http://www.comptroller1.state.tn.us/PAnew/LR.asp?W=98 - broken link)


I wouldn't suggest anyone move to Tennessee just because the taxes might be lower, but just add it into the mix of both good and bad things about Nashville and Tennessee. There are a lot of other things to consider besides taxes.

Thanks Alleycat,

Looks like the property taxes on a home like ours would run about $2100 in Nashville-Davidson, according to my calculations based on the 1998 rate link. Has that changed much in the last 10 years?

You are right when you say that there is more to consider than taxes. We have grandchildren and the way our government is spending they will never be able to afford the taxes on their inheritance. Thanks to the "stimuless(less)" spending bill

[Big TR]

Mrk9, we are in Williamson county. Our $400k home has taxes of $2200 per year.

As for the inheritance taxes, just plan your death for the end of 2010. That way you can pass on your wealth without taxes. Sadly, I bet more than a few people will pull the plug on grandma next year to avoid all the taxes.

[alleycat]

TR brings up a good point. Property taxes are often lower in the surrounding countries.

You also asked how often they raise the property tax. They are not too bad about this; one of the reasons might be is that a public referendum is often called on a property tax increase (I don't remember the exact legal requirements, or the full details of how a property tax increase is implemented). Another thing to consider is property taxes can be frozen for those over 65 in Metro Nashville and many other counties in Tennessee. I believe it has to be the principal residence is order to qualify however.

[johnnyboy2008]

The sales tax is like 9.3% in nashville which is one of the reasons I moved.

I hate buying 100 dollars worth of stuff and paying almost 10 dollars in sales tax.

[Lamplight]

I'm in Murfreesboro, my house was valued at $129,000, and my total taxes are under $1000 per year, though I cannot remember the exact number at the moment.

Edit: Hmm, looking at this, it seems my taxes should be considerably more:

http://www.rutherfordchamber.org/economic-development/shared/taxes.php#property (broken link)

I must not be figuring this correctly at all. Math never was my strong point.