Although Tennessee is renowned for having low tax rates, is there a personal property tax in place? Yes, it is the answer. Tangible personal property like vehicles, yachts, and planes are subject to personal property taxes in Tennessee. Tax rates for personal property are determined at the county level.
Tennessee levies both personal property taxes and a sales tax. Nashville has a sales tax of 9.25%, whereas Memphis has a sales tax of 9.75%. There is a 9.25% sales tax in Chattanooga and a 9.25% sales tax in Knoxville.
Memphis levies a 9.25% sales tax on food, which is the same as the city’s normal sales tax. However, Nashville has a 9.75% sales tax on food. The food sales tax in Knoxville and Chattanooga is 9.25%.
The absence of a state income tax in Tennessee makes it a desirable location for retirees and those who want to pay as little tax as possible. The state does, however, rely largely on money from sales tax and property tax to pay for public services.
In conclusion, Tennessee levies a personal property tax and levies sales taxes at various county-level rates. Although rates can vary by location, food is often subject to the same sales tax rate as other goods and services. State, municipal, and special district taxes are all included in Oak Ridge’s 9.5% sales tax. Tennessee has taxes, but the absence of a state income tax makes it a desirable location for anyone who want to lessen their tax burden.