Most & Least Taxing States 2013

By Rebecca Helmes of Bloomberg BNA - 2013-04-19T17:41:14Z

Photograph by AFP/Getty Images

Company Symbol % Change
43 of 54

Tennessee

Income tax: None on wages*
Sales tax: 7%**
Property tax per capita: $795
Estate tax: 5.5% to 9.5% with a $1.25 million exemption

Tennessee does not tax income, apart from a 6 percent levy on interest and dividends. Capital gains are exempt. Tennessee’s estate tax will be phased out by 2016. Tennessee calls its tax an inheritance tax but it functions as an estate tax, according to the Tax Foundation. Tennessee leads the pack in state and local sales tax rates, with a combined rate of 9.4 percent.

*6 percent on interest and dividend income

**There is also a 2.75 percent tax on certain sales worth between $1,600.01 and $3,200.

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