There are so many reasons to choose Tennessee; all you have to do is choose one.


Tennessee allows you to utilize your income to enjoy what life has to offer. Tennessee prides itself on the sense of community and dedication to creating a family oriented environment.

Some of the many reasons people choose Tennessee are;


No State Income Tax


The Tennessee income tax does not apply to salaries and wages. However, most income from stocks, bonds and notes receivable is taxable.

  • Additional downloadable state tax forms may be obtained from the Department of Revenue's Web site. $ Sales tax
  • Generally, the state's sales and use tax rate is 7 percent.
  • Food remains taxed at 6 percent, but candy, dietary supplements and prepared food are taxed at the increased 7-percent rate.
  • Local sales taxes also are collected and those rates vary from 1.5 percent to 2.75 percent.

    • Low Personal and Real Estate Property Taxes


    Tennessee does not have a homestead exemption. However, there is a property tax relief program for the elderly, disabled and/or veterans. Program requirements may be found at the Tennessee Comptroller's Web site.

    Intangible Personal Property Taxes


  • Intangible personal property is assessed on the shares of stock of stockholders of any loan company, investment company, insurance company or for-profit cemetery companies.
  • The assessment ratio is 40 percent of the value multiplied by the tax rate for the jurisdiction.
  • File Form RV-0378, Report of Dividends Paid. $ Inheritance and estate taxes
  • Tennessee imposes an inheritance tax on decedents' estates that exceed maximum single exemption limits. Because of the phase-out of the federal estate tax credit, Tennessee's estate tax is not imposed on estates of persons who died in 2005.
  • For more information, contact the Tennessee Department of Revenue at (615) 741-3580 (Taxpayer Services) or at the Web site.

    • Low Insurance Rates


    According to a recent survey by the American Chamber of Commerce Research Association, the cost of living in Tennessee is 10% less than the national average. Insurance rates are also below the national average. Tennessee has no personal state income tax, very low real estate taxes, low utility bills and low construction costs.