10 US States Where You Pay the Least Taxes

9) Tennessee

Tennessee also falls into the same gray area as New Hampshire. Technically income is not taxed but there is a 6.0% tax on interest and dividend income. Tennessee’s sales tax is high and falls between 7.0% and 9.7% depending on the location within the state. On the bright side, property tax within the state is much lower at 0.99%.

Even with the high tax on sales, the cost of living in Tennessee is still very low compared to the national average. It is ranked at #2 for the lowest cost of living within the United States. The only exception is utility which is 16% higher than the national average. Overall, Tennessee’s taxes and living expenses are low when compared with the rest of the country which will provide you an excellent way to save your money.

Income Tax: None (6.0% on interest and dividend income)
Sales Tax: 7.0%-9.7%
Property Tax: 0.99%