Tennesseans pay second-lowest share of income in state and local taxes of any state according to a new study by HireHelper that compared taxes in all 50 states.
The amount paid by the typical Tennessean in state and local taxes totaled $2,694 in 2018, which was was 44.4% lower than the national average and the lowest of any state.
The typical Tennessean paid 5.7% of income in property, sales and other state and local taxes, compared with a national average of 8.9% of personal income going for such taxes.
Tennessee Gov. Bill Lee said he is proud of the recognition as a low-tax state and insisted taxes can be kept low “while maintaining a high level of service” to Tennessee taxpayers.
The conservative Nashville think tank the Beacon Group credits Tennessee’s low tax burden for its above-average economic growth rate in recent years.
“There is a reason Tennessee is one of the fastest-growing states in the country and people from Illinois, New York, California, and others are fleeing here,” said Ron Shulis, Beacon’s policy director. “Tennessee’s commitment to low taxes and reasonable regulations has created an economic environment that is attractive to both businesses and workers.”