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Old 01-09-2016, 03:04 PM
 
2 posts, read 2,505 times
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So we are considering moving to TN and I am looking at the tax situation. I just don't understand the setup. So many conflicting opinions on wether income tax is better than sales tax and vice versa. I guess it books down to: 1.) please explain what taxes a working family who owns land and a home would pay in TN, 2.) What is taxes by the sales tax since here in PA, we don't tax food or other necessities, and 3.) is it really cheaper to live in TN than other nearby states? Thanks so much!
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Old 01-09-2016, 09:30 PM
 
Location: A Yankee in northeast TN
13,724 posts, read 17,334,768 times
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No state tax on earned income, Hall tax on certain investment income - https://en.wikipedia.org/wiki/Hall_income_tax

Property tax rates very much depend on location compare Dekalb county to the City of Memphis! https://www.comptroller.tn.gov/pa/LR.asp?W=15
No yearly tax on personal property

Sales tax also depend on location, state tax starts at 5.5% for food and 7% for other items, counties and cities can add to that, up to another 2.75% prescription meds are tax exempt- Tennessee (TN) Sales Tax Rates by City

Whether or not it's cheaper will depend on a lot of variables, but overall it can be cheaper than many other places. I chose to stay in TN over NC and VA in part because those places would be more expensive for me. But my situation is that I have a modest income, live in a modest home, and don't spend a lot, so the higher sales tax does not present a problem for me. I can't be taxed on what I don't buy, and the taxes on what I do buy is less than the 6%-7% income tax I would be paying in another state.
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Old 01-09-2016, 09:38 PM
 
Location: Fairfield, OH formerly S**tcago, IL
223 posts, read 228,799 times
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The base sales tax is 7% for the state plus the local option sales tax. Tennessee (TN) Sales Tax Rates by City. The state also levies an additional tax of 2.75% for single articles prices from 1600.01 to $3200. https://www.tn.gov/revenue/article/s...single-article Prescription and OTC drugs are not taxed, but food supplements (vitamins etc.) are taxable, as are grooming aids such as soap, shampoo and so on. http://www.tennessee.gov/assets/enti...sales07-18.pdf. My plan is if I move to Nashville area, or any area bordering Kentucky, to get in the car and cross state lines for cash and carry items of any great value. It's a time honored tradition here in Chicago, where the north siders go up to Wisconsin and south siders go to Indiana.
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Old 01-09-2016, 11:25 PM
 
Location: Sale Creek, TN
4,425 posts, read 4,219,712 times
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Can't forget property taxes, which vary from county to county, as does car registration.
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Old 01-10-2016, 02:16 AM
 
Location: A Yankee in northeast TN
13,724 posts, read 17,334,768 times
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Quote:
Originally Posted by Creekcat View Post
Can't forget property taxes, which vary from county to county, as does car registration.
Oh yeah, I tend to forget about the registration because it's only $24 here
( link to property tax chart in my first post, amazing what a variation there is)

Scroll down to see each county/city rate
https://www.tn.gov/revenue/article/renew-by-mail
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Old 01-10-2016, 07:54 AM
 
Location: Fairfield, OH formerly S**tcago, IL
223 posts, read 228,799 times
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Actually food tax dropped from 5.5 to 5%. Unless you eat like a horse I've figured out the lack of a state income tax would more than make up for sales tax on food. Another benefit is eating out-it's been a couple of years, but when I was in Brentwood what I noticed was the tax at the restaurant was just the regular tax. Up here, every level of government piles their own taxes on restaurants so you wind up paying 12.25%.
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Old 01-10-2016, 10:07 AM
 
Location: A Yankee in northeast TN
13,724 posts, read 17,334,768 times
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Quote:
Originally Posted by thunderstruck666 View Post
Actually food tax dropped from 5.5 to 5%. Unless you eat like a horse I've figured out the lack of a state income tax would more than make up for sales tax on food. Another benefit is eating out-it's been a couple of years, but when I was in Brentwood what I noticed was the tax at the restaurant was just the regular tax. Up here, every level of government piles their own taxes on restaurants so you wind up paying 12.25%.
That restaurant tax must vary. When I was in Memphis I noticed Mc donalds had a 'carry out' tax, they also had a 'dine in' tax, lol. Next time I go to a fast food place here in Bristol I'll have to see if they have the same kind of gotcha taxes
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