Illinois continues to struggle with its budget. The state’s most recent stopgap budget expired on December 31, 2016. To perhaps break up the political logjam, Illinois senators of both political parties have begun...
The facts on Tennessee’s Tax Climate
6%Individual Income TaxInterest & Dividends Only
6.5%Corporate Income Tax
$799Property TaxCollections Per Capita
Tennessee's Individual Income Tax System
Tennessee's individual income tax system consists of a flat rate of 6%, which applies to interest and dividend income only. That rate ranks 19th highest among states levying an individual income tax. Tennessee's state and local tax collections per person were $40 in 2013, which ranked 43rd highest nationally.
Tennessee's Corporate Income Tax System
Tennessee's corporate income tax system consists of a flat rate of 6.5%. That rate ranks 24th highest among states levying a corporate income tax. Tennessee's state and local corporate income tax collections per person were $193 in 2013 which ranked 12th highest nationally.
Tennessee Sales and Excise Taxes
Tennessee levies a 7% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 2.5%. Tennessee's state and local governments collect $1,247 per person in general sales taxes and $458 per person in excise taxes, for a combined figure of $1,704, which ranks 15th highest nationally. Tennessee's gasoline tax stands at 21.4 cents per gallon, 39th highest nationally, while its cigarette tax stands at $0.62, 40th highest nationally.
Tennessee Property Tax Collections Relatively Low
Tennessee's state and local governments collected approximately $799 per person in property taxes in 2012, which ranks 9th lowest nationally.
Tax Freedom Day Arrives on April 6th in Tennessee
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Tennessee taxpayers have to work until April 6th (2nd earliest nationally) to pay their total tax bill.
Tennessee's State and Local Tax Burden Ranks 47th
Tennessee's 2016 Business Tax Climate Index Ranks 16th
Tennessee ranks 16th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (18th), individual income taxes (8th), sales taxes (46th), unemployment insurance taxes (25th), and taxes on property (37th), including residential and commercial property.
State Business Tax Climate Index (full study)
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