grocery tax in Tennessee?? (Memphis, Knoxville: home, contractors, calculator)

[LLuce]

Ya know, I think a few people that answered this OP's (which is me) question got their undies in a bunch over nothing. I DID NOT say that TN is too flippin high to live in. I DID NOT say that I was looking for reasons to stay in Illinois, despite one posters suggestion that I do that. I was just commenting on the article that I had read on a particular tax that I did not realize was that high. However, I am smart enough to figure out that a higher grocery tax or a sales tax does not constitute a huge tax burden in the whole scheme of things. The other couple little posts I made about having gardens etc. was my attempt at a little laugh (hence the smiley emoticon) which apparently flew right past some folks. My apologies to transplants from New York or anyone else, that have both barrels lowered at anyone questioning anything in Tennessee. I have always loved Tennessee and I plan on making it my home.

I think its very wise for someone contemplating moving, to take into consideration everything and not just say "gosh it's beautiful there, I'm moving".

[J&Em]

Originally Posted by LLuce

I was just looking at an article comparing tax on groceries between states. I live in Illinois and we have a 1% tax on groceries. I can't believe that TN is one of the states with the highest tax rate on groceries!! Holy Cow! Like 6 percent?? Is that for real? That's our state sales tax where I live, (actually our state sales tax in my area is 6 1/4 %) And Tennessee's sales tax is like 9.25% ? Wondering if retiring in Tenneesse is really gonna be that much lower for us tax wise. Cost of homes sure isn't any lower either. You got us beat hands down on property tax though.

Originally Posted by LLuce

Ya know, I think a few people that answered this OP's (which is me) question got their undies in a bunch over nothing. I DID NOT say that TN is too flippin high to live in. I DID NOT say that I was looking for reasons to stay in Illinois, despite one posters suggestion that I do that. I was just commenting on the article that I had read on a particular tax that I did not realize was that high. However, I am smart enough to figure out that a higher grocery tax or a sales tax does not constitute a huge tax burden in the whole scheme of things. The other couple little posts I made about having gardens etc. was my attempt at a little laugh (hence the smiley emoticon) which apparently flew right past some folks. My apologies to transplants from New York or anyone else, that have both barrels lowered at anyone questioning anything in Tennessee. I have always loved Tennessee and I plan on making it my home.

I think its very wise for someone contemplating moving, to take into consideration everything and not just say "gosh it's beautiful there, I'm moving".

Your words, not mine, in red. Both barrels lowered? Bless your heart dear.

I'm quite aware you are the OP (Original Poster) that made the OP (Original Post) it can be used both ways.

[Big TR]

When I moved here from Chicago two years ago, I took a $0 paycut. I work in corporate finance.

[hiknapster]

Originally Posted by jwkilgore

Some states do not tax certain forms of retirement income (such as Georgia), which negates TN's biggest advantage. I was simply pointing out that fact to the OP.

I've been gone for a couple of weeks and no one said anything about this?

We have the Halls tax, which taxes investment income but we do NOT tax retirement income because we do NOT have an income tax in the state of TN.

12.What about pension income, Social Security, 401(k) and IRA distributions?
As the Tennessee income tax does not apply to salaries and wages, items of income such as Social Security and pension income are not subject to state tax. Tenn. Code Ann. Section 67-2-104(m) provides that income from stocks and bonds of pension trusts and profit-sharing trusts which are exempt from federal income taxation shall be exempt from the state income tax. This includes such accounts as IRA and 401(k) accounts. Distributions from IRAs and 401(k) plans are also exempt.

13.Are there any exemptions?
Yes. The first $1,250 of taxable income is exempt ($2,500 on a joint return).

Individuals 65 years old or older with total annual income of $16,200 or less ($27,000 for joint filers) are exempt from this tax.

Blind persons may be exempt upon filing a statement from their eye specialist. Please send letters certifying blindness to:
Amy Green
Tennessee Department of Revenue
Audit Division, 4th Floor
500 Deaderick St.
Nashville, TN 37242.

Individual Income Tax Frequently Asked Questions (http://www.state.tn.us/revenue/faqs/indincome.htm#7 - broken link)

[heatheru]

The problem with the tax in TN, especially where I live (Talbott) is that most of the people here are the working poor. 9.75/8.25 kills you when you only have money for groceries and household items (if you're lucky enough to have that). Most couldn't buy a house if they wanted to because two people making minimum wage (and I'm a graphic designer not a fast food worker) isn't enough income to get approved even with good credit, which is almost impossible anyway when you can barely make rent. If you already make good money or are coming here with your savings/retirement, I'm sure it's great... but for 90% of the people who live here who can only afford basic necessities, this is the worst place to be. Not to mention it's as hot as Florida and more humid most of the time which I loathe. I'll be moving as soon as I can.

[hiknapster]

Originally Posted by heatheru

The problem with the tax in TN, especially where I live (Talbott) is that most of the people here are the working poor. 9.75/8.25 kills you when you only have money for groceries and household items (if you're lucky enough to have that). Most couldn't buy a house if they wanted to because two people making minimum wage (and I'm a graphic designer not a fast food worker) isn't enough income to get approved even with good credit, which is almost impossible anyway when you can barely make rent. If you already make good money or are coming here with your savings/retirement, I'm sure it's great... but for 90% of the people who live here who can only afford basic necessities, this is the worst place to be. Not to mention it's as hot as Florida and more humid most of the time which I loathe. I'll be moving as soon as I can.

Wow, this post is full of hyperbole. The most egregious statement is that it is as hot as Florida and more humid!

Florida is a big state with varying temps but what an amazing statement! I lived in Orlando and for about ten years in the Fort Myers/Naples area and believe me, it is far, far hotter down there than here, even in the Memphis area. Humidity? Are you kidding? Not to mention the dew point which really makes living in a place very uncomfortable. No way does Tennessee feel like there. And don't even get me started on the length of summer down in Florida.

[Deserted soul]

I moved to Brentwood Tn about six months ago. I was cleaning out my wallet and glanced at a receit and noticed the food tax. A bit stunned. Still no comparison to New York's taxes!

[DaveinMtAiry]

Originally Posted by LLuce

I don't know where exactly you grew up but houses aren't cheap around here and I'm in East Central Illinois. I guess what you consider "cheap" is important. But I'll agree with you on one thing, there is no business around here anymore. Everything has moved out or shut down, but housing is still not cheap. Property taxes are ridiculous! $4000 on my 1750sq ft. home valued at $185,000. And that is no way what is considered an expensive home for this region. Middle of the road I would say.

Then of course there is utility costs etc. to consider. But despite all that, TN has to be cheaper than Illinois. I'm hoping....

I find this post shocking. Maryville is the area we are looking at now and one of the reasons is the low property tax. Our home price is around $150,00 and in that range I have yet to find a house with property taxes over $1,000. Now in Knoxville or neighboring areas it's higher but not in Maryville.

[Serious Conversation]

Originally Posted by DaveinMtAiry

I find this post shocking. Maryville is the area we are looking at now and one of the reasons is the low property tax. Our home price is around $150,00 and in that range I have yet to find a house with property taxes over $1,000. Now in Knoxville or neighboring areas it's higher but not in Maryville.

What you're looking at is about right. No idea if that $4,000 was from TN or not, but you'd need to get up to about a half million dollar house in east TN to get those kinds of bills.

[62mike]

I think the one key factor is the legislature thinks the stupid public will fall for the bait and switch. Raise the gas tax which everyone must have (gas) in order to go to work to pay for groceries but we (legislature) will give them 1/2% off grocery tax (or whatever). We all know it will just be a matter of time before they realize they need more money and raise the grocery tax back up again then we are stuck with two tax increases. Tax rarely if ever goes away once you have it. Anyone is living in a dream if they don't think the price of gas itself is not going to go back up again at some point and time. Those few cents hurt when gas is $3.50 a gallon or more.

Perhaps DOT should look at better money management. They have always been given nearly unlimited funds yet they allow contractors to have cost over runs (taxpayer foots the bill) and delays in delivery which should come with significant penalties but the "good old boy" system lets so much slide through.