Lookout Mtn Tn VS Lookout Mtn Ga. (Lookout Mountain: sales, real estate)

[thedrover]

Can someone tell me what the exact tax differences would be if I lived in TN or GA? I see some really cute homes on the Ga side. My husband and I live on disability, SS and money we draw from investments. How big a difference in our taxes is there?

[An Einnseanair]

For "exact" you'll have to consult a financial adviser. But for free internet advice keep reading.

TN has a higher sales tax. It's 9-9.75% vs Georgia's 6-7%.


Georgia has a personal property tax (taxes on the value of things like cars, boats, motorcycles) while Tennessee does not. I am not familiar with the rates, but it will probably depend on whether you live in Walker or Dade County (the county line splits the mountian). I would guess this is on the order of a few hundred to a thousand dollars a year, depending on the value of your personal property. [EDIT: I just found where the yearly vehicle personal property taxes have been replaced by a one-time 7% ad valorem tax based on the value at the time of registration. This could be a seriously steep bill if you have expensive vehicles.]


Lookout Mountain, TN has a Real Estate property tax rate of $4.4252 per $100 of assessed value (25% of appraised value). This equates to a tax rate of 1.1063% of the appraised value every year.

I'm not familiar with Real property taxes in Georgia; this also will depend on county. I did find where both Walker County and Dade County set taxes based on 40% of the appraised value (vs. 25% in TN), but I couldn't find the millage rates after a quick search. I also saw where Dade county has a partial exemption for people 65 or older.


For people with wage/salary income TN is best because there is no state income tax. But for retirees GA is probably better. Both states tax retiree investment income (pensions, 401k, etc.), but the exemption is much higher in Georgia plus the rate is slightly lower. If you are 65 and older, the exemption is $59,000 for a married couple in TN vs $130,000 in Georgia. Georgia also has an exemption if you are between 62 and 65, or under 62 and disabled ($70,000 for married couple) while TN does not.
TN Hall Tax
Retirement in Georgia


So in summary... Georgia looks to be better in every way except for the huge one-time car registration tax, and I'm not sure on Real property taxes.

[thedrover]

I appreciate the time you have taken to answer my question.