Taxes
Tennessee: Third lowest tax rate in the USA!
Listed below is the per-person state and local tax bill in 2004. Figures represent all state and local government tax revenue collected from households, consumers and businesses, divided by the state population. Tennessee is highlighted in red. Source: U.S. Census Bureau.
| $7,154 | Washington DC |
| 5,260 | New York |
| 4,921 | Connecticut |
| 4,555 | New Jersey |
| 4,437 | Wyoming |
| 4,217 | Massachusetts |
| 4,016 | Maryland |
| 3,891 | Rhode Island |
| 3,813 | Hawaii |
| 3,811 | Minnesota |
| 3,789 | Maine |
| 3,736 | California |
| 3,714 | Wisconsin |
| 3,681 | Vermont |
| 3,610 | Alaska |
| 3,609 | Nebraska |
| 3,608 | Delaware |
| 3,555 | Illinois |
| 3,452 | Washington |
| 3,447 | Pennsylvania* |
| 3,419 | Ohio |
| 3,417 | Nevada |
| 3,380 | Kansas |
| 3,342 | Virginia |
| 3,313 | Michigan |
| 3,169 | Colorado |
| 3,133 | New Hampshire |
| 3,094 | Florida |
| 3,054 | Iowa |
| 2,999 | Indiana |
| 2,989 | North Dakota |
| 2,929 | North Carolina |
| 2,917 | Oregon |
| 2,899 | Louisiana |
| 2,881 | Texas |
| 2,877 | Georgia |
| 2,871 | Arizona |
| 2,861 | New Mexico |
| 2,822 | Missouri |
| 2,767 | Kentucky |
| 2,740 | West Virginia |
| 2,735 | Utah |
| 2,728 | Idaho |
| 2,677 | Oklahoma |
| 2,662 | South Carolina |
| 2,623 | Montana |
| 2,615 | South Dakota |
| 2,536 | Arkansas |
| 2,535 | Tennessee |
| 2,444 | Mississippi |
| 2,328 | Alabama |
| *National Average |
Income Taxes
No state and local income tax on wages and most
interest!
Tennessee has no state or local income taxes on:
Wages.
Interest from
bank accounts.
Interest from
savings and loans.
Interest from
certificates of deposit.
Interest from
credit unions.
Interest on U.S.
bonds.
Interest from
"NOW" accounts.
Interest of bank
money market accounts.
There is a 6% state income tax on:
Dividends from stocks and mutual funds.
Interest from notes you hold.
However, there is an exemption of
$1,250 if single or married filing separately or
$2,500 if married filing jointly!
Property Taxes
Macon County has one of the lowest property tax rates in the state.
| Location of Property | Tax per $1,000 of assessed value |
| Inside Lafayette City Limits | City 0.7100 County 2.2494 Total $2.9594 |
| Inside Red Boiling Springs City Limits | City 1.1609 County 2.2494 Total $3.4103 |
| Inside Macon County, but not within a city |
County 2.2494 Total $2.2494 |