Tennessee has no income tax on salaries and wages, although there is a flat statewide rate for all income from interest and dividends. Tennessee has the highest overall sales tax in the country. Homeowners in the state pay some of the lowest property taxes in the nation. The typical taxpayer pays the least in these counties:
1. Grundy – average sales tax payment of $1,445, property tax of $406, and fuel tax of $256 per year.
2. Johnson – average sales tax payment of $1,328, property tax of $512, and fuel cost of $273 per year.
3. Hancock – average sales tax payment of $1,406, property tax of $470, and fuel cost of $265 per year.
4. Meigs – average sales tax payment of $1,406, property tax of $519, and fuel cost of $258 per year.
5. Fentress – average sales tax payment of $1,484, property tax of $429, and fuel tax of $280 per year.
Source: SmartAssets Tennessee tax calculator