Tennessee Tax?

April 11, 2008 4:17 PM

does Tennessee have a separate tax all for itself like California does? or would I just get my usual 17% or so taken out of regular paycheck? I'm considering moving there so if somebody could help me out.......thanks... Loco
posted by locoindio to Law & Government (6 answers total)

It doesn't have a state income tax if that's what you mean. There is a 7% sales tax and, if my research is correct, a 5.5% food tax (which California doesn't have at all).
posted by mostlymartha at 4:20 PM on April 11, 2008

In addition to the 7% sales tax, there are local sales taxes throughout the state that make sales tax, in most places, 9.25% altogether.
posted by frobozz at 4:35 PM on April 11, 2008

Tennessee is so weird that, if you go to the grocery store and buy bread, meat and cheese, it will have a different sales tax rate than if you buy a sandwich. Screwy, huh?

But no, there is no income tax.
posted by slavlin at 5:19 PM on April 11, 2008

slavlin: Actually, that's pretty normal. Here in TX, there's a sales tax -- but it doesn't apply to unprepared foods at all. So if you go to the grocery store and buy a loaf of bread ($1.19), a head of lettuce ($.99), and lunch meat ($2.99), you don't get any tax. If you go to the grocery store buy a sandwich ($5.00), it's taxed at the usual 8.25%.
posted by SpecialK at 8:01 PM on April 11, 2008

After living in Tennessee all of my life and thinking there was no income tax, I was surprised a couple months ago when my fiance pointed out to me that there actually is an income tax in Tennessee. However, it only applies to taxable interest and/or dividend income exceeding $1,250. Here is the state site which tells about Tennessee's income tax and another which tells about all the different kinds of taxes in Tennessee.
posted by sapphirebbw at 3:25 AM on April 12, 2008

Seconding frobozz, between state and local taxes you're looking at 9.25 to 9.75 percent sales tax. The food tax comes up every election year, and the general tone is "well we wish we could do away with it, but where would we get the money...". Last time around someone proposed a porn tax to replace it (without, you know, any research on the money it would bring in) and the local news stations had a field day.

I like to consider that a brain tax.
posted by Benjy at 9:05 AM on April 12, 2008