Since it’s currently the time of year when we all have to pony up our share to Uncle Sam, I thought it would be helpful to share some relatively positive news–some “good news” about takes, if there is such a thing…
According to the consumer credit website ‘Wallet Hub‘, Tennessee currently has the third lowest tax burden in the United States. Needless to say, this is a good thing. From a day-to-day standpoint this ranking might not much of a different for the average person. From a more global perspective however, it creates a strong economic case for Tennessee – and the Chattanooga Metro Area in particular – as a destination for relocation, entrepreneurship, and retirement.
WalletHub’s analysts compared the all of the 50 states across the major three tax types that make up a state’s given tax burden: (1) property taxes, (2) individual income taxes, and (3) sales and excise taxes. Then WalletHub’s researchers compared these numbers to the total personal income in the state. WalletHub found that the effective overall tax rate in Tennessee was 6.45% (only Delaware at 5.50% and Alaska 6.27% came in lower).
In terms of our residential real estate market, the low tax burden we carry puts us at a distinct advantage over other locations. Tennessee’s low overall tax burden, coupled with our relatively low level inventory and our modest pace of new construction, create a solid foundation for our real estate market–even in a down cycle.
So far 2017 has been a strong year for home sales in our region–here’s to hoping this positive ranking helps us continue to make the case that we are a premier destination for relocation. Whether you are looking to start a business or get the most out of your retirement dollar, Chattanooga can no longer be overlooked.
Check out the map below to see how we compare to the rest of the region and the country – note that the lighter the color of the state, the lower the tax burden.
For local coverage on the WalletHub study check out this article in the Chattanooga Times-Free Press.