Individual income tax collections
$2,088,000
2025 · Census State Government Tax Collections
Effective property tax
0.55%
General sales tax collections
$14,700,852,000
2025 · Census State Government Tax Collections
State tax collections per resident
$3,496
2025 · Census tax collections
State tax collections
$25,573,839,000
2025 · Census Annual Survey of State Government Tax Collections
Income Tax
Personal income tax.
Individual income tax collections
$2,088,000
2025 · Census State Government Tax Collections
Personal income tax
None
Corporate excise tax
6.5%
Tax on dividends
0%
Hall tax repealed 2021
Individual income tax collections
1990–2025$2,088,000▼ 98%
Census State Government Tax Collections (FRED TNINCTAX).
| Indicator | Tennessee | U.S. |
|---|---|---|
| Top income tax rate (%) | 0 | 5.0 |
Property Tax
Tax on real estate.
Effective property tax
0.55%
Rank
12th lowest
Median property tax bill
$1,375
| Indicator | Tennessee | U.S. |
|---|---|---|
| Effective property tax (%) | 0.55 | 0.90 |
Sales Tax
Consumption tax.
General sales tax collections
$14,700,852,000
2025 · Census State Government Tax Collections
State sales tax
7.00%
Average combined rate
9.55%
Rank
1st highest in the U.S.
General sales tax collections
1990–2025$14,700,852,000▲ 527%
Census State Government Tax Collections (FRED TNSALESTAX).
| Indicator | Tennessee | U.S. |
|---|---|---|
| Combined sales tax (%) | 9.55 | 6.6 |
- •Tennessee has the highest average combined sales tax rate in the United States, at about 9.55%.
Tax Burden
Overall taxes paid.
State tax collections per resident
$3,496
2025 · Census tax collections
Total tax burden
7.6% of income
Rank
3rd lowest
State & local tax per capita
$4,600
State tax collections per resident
1990–2025$3,496▲ 303%
Census tax collections (TNTOTLTAX) divided by Census resident population (TNPOP).
| Indicator | Tennessee | U.S. |
|---|---|---|
| Tax burden (% of income) | 7.6 | 11.2 |
- •Tennessee finished phasing out the Hall income tax on interest and dividends in 2021, leaving no state tax on personal income at all.
Tax Revenue
Government income.
State tax collections
$25,573,839,000
2025 · Census Annual Survey of State Government Tax Collections
Per capita revenue
$3,040
State tax collections
1990–2025$25,573,839,000▲ 502%
Census Annual Survey of State Government Tax Collections, fiscal years (FRED TNTOTLTAX).