Tennessee vs Kentucky Taxes: Income, Property & Sales

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

Tennessee vs Kentucky Income Tax Comparison

	Tennessee	Kentucky
Income Tax Rates & Thresholds	None	5.00%
Median Income	$65,380	$55,880
Income Tax Paid On Median Household Income	$7,151	$7,680
Income After Tax Based on Median Household Income	$58,229	$48,200

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Tennessee vs Kentucky Property Tax Comparison

	Tennessee	Kentucky
Average Property Tax Rate	0.42%	0.60%
Average House Price By State	$310,782	$201,033
Average Property Tax Owed Per Year	$1,305	$1,206
Income After Income Taxes & Property Taxes Based On Median State Household Income	$56,924	$46,994

Tennessee vs Kentucky Sales Tax Comparison

	Tennessee	Kentucky
Average State Sales Tax	7.00%	6.00%
Average Local Sales Tax Across the State	2.55%	0.00%
Average Combined Sales Tax Rate	9.55%	6.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,962	$2,660
Maximum Disposable Income Based on Median Household Income	$51,961	$44,334

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

	Tennessee	Kentucky
Income Tax Owed	$3,040	$4,865
After Tax Income	$36,960	$35,135
Income After Income & Property Tax	$35,655	$33,929
Maximum Disposable Income After Income, Property & Sales Taxes	$32,547	$32,008

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

	Tennessee	Kentucky
Income Tax Owed	$5,968	$8,793
After Tax Income	$54,032	$51,207
Income After Income & Property Tax	$52,727	$50,001
Maximum Disposable Income After Income, Property & Sales Taxes	$48,130	$47,171

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

	Tennessee	Kentucky
Income Tax Owed	$10,368	$14,193
After Tax Income	$69,632	$65,807
Income After Income & Property Tax	$68,327	$64,601
Maximum Disposable Income After Income, Property & Sales Taxes	$62,370	$60,944

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

	Tennessee	Kentucky
Income Tax Owed	$14,768	$19,593
After Tax Income	$85,232	$80,407
Income After Income & Property Tax	$83,927	$79,201
Maximum Disposable Income After Income, Property & Sales Taxes	$76,610	$74,718

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

	Tennessee	Kentucky
Income Tax Owed	$8,481	$13,081
After Tax Income	$91,519	$86,919
Income After Income & Property Tax	$90,214	$85,713
Maximum Disposable Income After Income, Property & Sales Taxes	$82,349	$80,861

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

	Tennessee	Kentucky
Income Tax Owed	$18,536	$25,636
After Tax Income	$131,464	$124,364
Income After Income & Property Tax	$130,159	$123,158
Maximum Disposable Income After Income, Property & Sales Taxes	$118,812	$116,187

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

	Tennessee	Kentucky
Income Tax Owed	$29,536	$39,136
After Tax Income	$170,464	$160,864
Income After Income & Property Tax	$169,159	$159,658
Maximum Disposable Income After Income, Property & Sales Taxes	$154,412	$150,621

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

	Tennessee	Kentucky
Income Tax Owed	$41,455	$53,555
After Tax Income	$208,545	$196,445
Income After Income & Property Tax	$207,240	$195,239
Maximum Disposable Income After Income, Property & Sales Taxes	$189,174	$184,188

FAQ

Does Tennessee or Kentucky have lower income taxes?

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

Whereas Kentucky’s income tax is the following 5.00%

Does Tennessee or Kentucky have lower property taxes?

Tennessee has an average property tax rate of 0.42%

In comparison, Kentucky has an average property tax rate of 0.60%

Does Tennessee or Kentucky 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, Kentucky has a state sales tax rate of 6.00% and an average local rate of 0.00% for a combined total rate of 6.00%.

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

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, Kentucky gives you $44,334.

More Comparisons:

Tennessee vs Oregon
Tennessee vs Oklahoma
Tennessee vs Connecticut
Tennessee vs Utah
Tennessee vs Iowa

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/