Tennessee vs Indiana Taxes: Income, Property & Sales

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

Tennessee vs Indiana Income Tax Comparison

	Tennessee	Indiana
Income Tax Rates & Thresholds	None	3.23%
Median Income	$65,380	$70,030
Income Tax Paid On Median Household Income	$7,151	$10,404
Income After Tax Based on Median Household Income	$58,229	$59,626

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Tennessee vs Indiana Property Tax Comparison

	Tennessee	Indiana
Average Property Tax Rate	0.42%	0.74%
Average House Price By State	$310,782	$232,390
Average Property Tax Owed Per Year	$1,305	$1,720
Income After Income Taxes & Property Taxes Based On Median State Household Income	$56,924	$57,906

Tennessee vs Indiana Sales Tax Comparison

	Tennessee	Indiana
Average State Sales Tax	7.00%	7.00%
Average Local Sales Tax Across the State	2.55%	0.00%
Average Combined Sales Tax Rate	9.55%	7.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,962	$3,788
Maximum Disposable Income Based on Median Household Income	$51,961	$54,118

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

	Tennessee	Indiana
Income Tax Owed	$3,040	$4,300
After Tax Income	$36,960	$35,700
Income After Income & Property Tax	$35,655	$33,980
Maximum Disposable Income After Income, Property & Sales Taxes	$32,547	$31,757

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

	Tennessee	Indiana
Income Tax Owed	$5,968	$7,873
After Tax Income	$54,032	$52,127
Income After Income & Property Tax	$52,727	$50,407
Maximum Disposable Income After Income, Property & Sales Taxes	$48,130	$47,110

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

	Tennessee	Indiana
Income Tax Owed	$10,368	$12,919
After Tax Income	$69,632	$67,081
Income After Income & Property Tax	$68,327	$65,361
Maximum Disposable Income After Income, Property & Sales Taxes	$62,370	$61,085

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

	Tennessee	Indiana
Income Tax Owed	$14,768	$17,965
After Tax Income	$85,232	$82,035
Income After Income & Property Tax	$83,927	$80,315
Maximum Disposable Income After Income, Property & Sales Taxes	$76,610	$75,061

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

	Tennessee	Indiana
Income Tax Owed	$8,481	$11,646
After Tax Income	$91,519	$88,354
Income After Income & Property Tax	$90,214	$86,634
Maximum Disposable Income After Income, Property & Sales Taxes	$82,349	$80,967

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

	Tennessee	Indiana
Income Tax Owed	$18,536	$23,316
After Tax Income	$131,464	$126,684
Income After Income & Property Tax	$130,159	$124,964
Maximum Disposable Income After Income, Property & Sales Taxes	$118,812	$116,789

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

	Tennessee	Indiana
Income Tax Owed	$29,536	$35,931
After Tax Income	$170,464	$164,069
Income After Income & Property Tax	$169,159	$162,349
Maximum Disposable Income After Income, Property & Sales Taxes	$154,412	$151,728

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

	Tennessee	Indiana
Income Tax Owed	$41,455	$49,465
After Tax Income	$208,545	$200,535
Income After Income & Property Tax	$207,240	$198,815
Maximum Disposable Income After Income, Property & Sales Taxes	$189,174	$185,809

FAQ

Does Tennessee or Indiana have lower income taxes?

Tennessee’s income tax falls into the following range: None

Whereas Indiana’s income tax is the following 3.23%

Does Tennessee or Indiana have lower property taxes?

Tennessee has an average property tax rate of 0.42%

In comparison, Indiana has an average property tax rate of 0.74%

Does Tennessee or Indiana have lower sales taxes?

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%.

In contrast, Indiana has a state sales tax rate of 7.00% and an average local rate of 0.00% for a combined total rate of 7.00%.

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

Based on median household income after income, property and sales taxes Tennessee gives you a maximum amount of disposable income of $51,961

In comparison, Indiana gives you $54,118.

More Comparisons:

Tennessee vs Missouri
Tennessee vs Maryland
Tennessee vs Wisconsin
Tennessee vs Colorado
Tennessee vs Minnesota

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/