Compare taxes and see how much you save moving from Kentucky to Tennessee
Kentucky has a flat 4.5% income tax (reduced from 5%), while Tennessee has no state income tax (0%). Moving to Tennessee saves $4,500/year on $100k income. Tennessee also has lower property taxes (0.67% vs KY's 0.86%). However, Tennessee has much higher sales tax (9.55% highest in US vs KY's 6%). Overall, Tennessee offers significant tax savings, especially for high earners. The KY-TN border sees heavy migration driven by Nashville's boom.
Flat Rate
Flat 4.5% (was 5%)
No Income Tax
Constitutional prohibition
At $100,000 income:
That is $375/month back in your pocket!
| Income | KY Tax | TN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,250 | $0 | $2,250 | $22,500 |
| $100,000 | $4,500 | $0 | $4,500 | $45,000 |
| $200,000 | $9,000 | $0 | $9,000 | $90,000 |
| $500,000 | $22,500 | $0 | $22,500 | $225,000 |
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Moving from Kentucky to Tennessee? Multi-state returns are tricky—KY has income tax, TN doesn't. Get matched with a CPA who specializes in border state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →On $100,000 income, Tennessee saves $4,500/year in income tax (KY 4.5% vs TN 0%). TN also has lower property tax (0.67% vs KY 0.86%). On a $400k home, TN pays $2,680/year vs KY $3,440/year—difference of $760/year. However, TN sales tax is much higher (9.55% vs KY 6%)—costs $355 more annually. Net savings: $4,905/year. Over 10 years: $49,050.
Yes, heavy KY → TN migration. In 2023, 18,472 people moved KY → TN (vs 9,834 TN → KY), net gain of 8,638 for Tennessee. Migration drivers KY → TN: no income tax (save $4,500+ annually), Nashville boom (jobs in tech, healthcare, music), lower property tax. Reverse migration (TN → KY) driven by: cheaper housing (Louisville 43% cheaper), lower sales tax, bourbon culture.
Nashville wins economically: no income tax (save $4,500 annually), faster job growth (+10% vs KY stable), larger metro (2M vs 1.3M), diverse economy (tech, healthcare, tourism). Louisville wins for: cheaper housing (43% cheaper), lower cost of living (8% cheaper), lower sales tax (6% vs 9.55%). Choose Nashville for career opportunities. Choose Louisville for affordability.
Tennessee wins for retirees: zero income tax on retirement income (Social Security, pensions, 401k withdrawals), lower property tax (0.67% vs 0.86%), no state estate tax. However, TN has highest sales tax (9.55% vs KY 6%)—costs $355/year more. Kentucky wins for: cheaper cost of living, bourbon culture. Most KY retirees move to TN for tax savings.