Texas vs Tennessee Taxes: Income, Property & Sales

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

Texas vs Tennessee Income Tax Comparison

	Texas	Tennessee
Income Tax Rates & Thresholds	None	None
Median Income	$74,640	$65,380
Income Tax Paid On Median Household Income	$9,189	$7,151
Income After Tax Based on Median Household Income	$65,451	$58,229

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Texas vs Tennessee Property Tax Comparison

	Texas	Tennessee
Average Property Tax Rate	1.25%	0.42%
Average House Price By State	$305,497	$310,782
Average Property Tax Owed Per Year	$3,819	$1,305
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$56,924

Texas vs Tennessee Sales Tax Comparison

	Texas	Tennessee
Average State Sales Tax	6.25%	7.00%
Average Local Sales Tax Across the State	1.95%	2.55%
Average Combined Sales Tax Rate	8.20%	9.55%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$4,962
Maximum Disposable Income Based on Median Household Income	$56,961	$51,961

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

	Texas	Tennessee
Income Tax Owed	$3,040	$3,040
After Tax Income	$36,960	$36,960
Income After Income & Property Tax	$33,141	$35,655
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$32,547

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

	Texas	Tennessee
Income Tax Owed	$5,968	$5,968
After Tax Income	$54,032	$54,032
Income After Income & Property Tax	$50,213	$52,727
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$48,130

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

	Texas	Tennessee
Income Tax Owed	$10,368	$10,368
After Tax Income	$69,632	$69,632
Income After Income & Property Tax	$65,813	$68,327
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$62,370

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

	Texas	Tennessee
Income Tax Owed	$14,768	$14,768
After Tax Income	$85,232	$85,232
Income After Income & Property Tax	$81,413	$83,927
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$76,610

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

	Texas	Tennessee
Income Tax Owed	$8,481	$8,481
After Tax Income	$91,519	$91,519
Income After Income & Property Tax	$87,700	$90,214
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$82,349

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

	Texas	Tennessee
Income Tax Owed	$18,536	$18,536
After Tax Income	$131,464	$131,464
Income After Income & Property Tax	$127,645	$130,159
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$118,812

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

	Texas	Tennessee
Income Tax Owed	$29,536	$29,536
After Tax Income	$170,464	$170,464
Income After Income & Property Tax	$166,645	$169,159
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$154,412

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

	Texas	Tennessee
Income Tax Owed	$41,455	$41,455
After Tax Income	$208,545	$208,545
Income After Income & Property Tax	$204,726	$207,240
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$189,174

FAQ

Does Texas or Tennessee have lower income taxes?

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

Whereas Tennessee’s income tax is the following None

Does Texas or Tennessee have lower property taxes?

Texas has an average property tax rate of 1.25%

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

Does Texas or Tennessee have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

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 Texas or Tennessee?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, Tennessee gives you $51,961.

More Comparisons:

Texas vs Massachusetts
Texas vs Indiana
Texas vs Missouri
Texas vs Maryland
Texas 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/