Arizona vs Tennessee Taxes: Income, Property & Sales

Does Arizona or Tennessee have lower taxes? We answer that in a variety of ways below:

Arizona vs Tennessee Income Tax Comparison

	Arizona	Tennessee
Income Tax Rates & Thresholds	2.55%: $0-$28,653 2.98%: $28,654+	None
Median Income	$73,450	$65,380
Income Tax Paid On Median Household Income	$10,779	$7,151
Income After Tax Based on Median Household Income	$62,671	$58,229

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Arizona vs Tennessee Property Tax Comparison

	Arizona	Tennessee
Average Property Tax Rate	0.39%	0.42%
Average House Price By State	$429,910	$310,782
Average Property Tax Owed Per Year	$1,677	$1,305
Income After Income Taxes & Property Taxes Based On Median State Household Income	$60,994	$56,924

Arizona vs Tennessee Sales Tax Comparison

	Arizona	Tennessee
Average State Sales Tax	5.60%	7.00%
Average Local Sales Tax Across the State	2.80%	2.55%
Average Combined Sales Tax Rate	8.40%	9.55%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,726	$4,962
Maximum Disposable Income Based on Median Household Income	$56,268	$51,961

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Arizona	Tennessee
Income Tax Owed	$3,741	$3,040
After Tax Income	$36,259	$36,960
Income After Income & Property Tax	$34,582	$35,655
Maximum Disposable Income After Income, Property & Sales Taxes	$31,903	$32,547

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Arizona	Tennessee
Income Tax Owed	$7,331	$5,968
After Tax Income	$52,669	$54,032
Income After Income & Property Tax	$50,992	$52,727
Maximum Disposable Income After Income, Property & Sales Taxes	$47,041	$48,130

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Arizona	Tennessee
Income Tax Owed	$12,494	$10,368
After Tax Income	$67,506	$69,632
Income After Income & Property Tax	$65,829	$68,327
Maximum Disposable Income After Income, Property & Sales Taxes	$60,728	$62,370

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Arizona	Tennessee
Income Tax Owed	$17,728	$14,768
After Tax Income	$82,272	$85,232
Income After Income & Property Tax	$80,595	$83,927
Maximum Disposable Income After Income, Property & Sales Taxes	$74,350	$76,610

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Arizona	Tennessee
Income Tax Owed	$10,539	$8,481
After Tax Income	$89,461	$91,519
Income After Income & Property Tax	$87,784	$90,214
Maximum Disposable Income After Income, Property & Sales Taxes	$80,982	$82,349

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Arizona	Tennessee
Income Tax Owed	$22,370	$18,536
After Tax Income	$127,630	$131,464
Income After Income & Property Tax	$125,953	$130,159
Maximum Disposable Income After Income, Property & Sales Taxes	$116,193	$118,812

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Arizona	Tennessee
Income Tax Owed	$35,455	$29,536
After Tax Income	$164,545	$170,464
Income After Income & Property Tax	$162,868	$169,159
Maximum Disposable Income After Income, Property & Sales Taxes	$150,248	$154,412

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Arizona	Tennessee
Income Tax Owed	$49,459	$41,455
After Tax Income	$200,541	$208,545
Income After Income & Property Tax	$198,864	$207,240
Maximum Disposable Income After Income, Property & Sales Taxes	$183,454	$189,174

FAQ

Does Arizona or Tennessee have lower income taxes?

Arizona’s income tax falls into the following range:

• 2.55%: $0-$28,653
• 2.98%: $28,654+

Whereas Tennessee’s income tax is the following None

Does Arizona or Tennessee have lower property taxes?

Arizona has an average property tax rate of 0.39%

In comparison, Tennessee has an average property tax rate of 0.42%

Does Arizona or Tennessee have lower sales taxes?

Arizona has a state sales tax rate of 5.60% and an average local rate of 2.80% for a combined total rate of 8.40%.

In contrast, Tennessee has a state sales tax rate of 7.00% and an average local rate of 2.55% for a combined total rate of 9.55%.

Do you get to keep more money in Arizona or Tennessee?

Based on median household income after income, property and sales taxes Arizona gives you a maximum amount of disposable income of $56,268

In comparison, Tennessee gives you $51,961.

More Comparisons:

Arizona vs Massachusetts
Arizona vs Indiana
Arizona vs Missouri
Arizona vs Maryland
Arizona vs Wisconsin

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/