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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Missouri VS COUNTRY B Tennessee

Side-by-side analysis of income tax, effective rates, and take-home pay for Missouri and Tennessee in 2026.

Daniel · CountryTaxCalc Updated April 2026 Tax Comparison 2026
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OVERVIEW
Missouri charges up to 4.7% income tax (technically progressive but the top bracket starts at just $9,072, making it effectively flat for most workers). Tennessee charges no income tax at all. The income tax comparison clearly favours Tennessee — at $100,000 income, Tennessee residents save approxim…
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
🌉
COUNTRY A
Missouri
TAX RATE
4.7%
Top Rate (above $9,072)
Top bracket reached at $9,072 — effectively flat for most earners; property tax ~1.01%
🎵
COUNTRY B
Tennessee
TAX RATE
0%
No Income Tax
No income tax; 7% state sales tax (highest in US); property tax ~0.67%
TYPICAL ANNUAL DIFFERENCE
Moving from Tennessee → Missouri at $100,000
$5,700
That's $475/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🌉 MO TAX
🎵 TN TAX
SAVINGS
10-YEAR
$50,000
$2,350 MO income tax (~4.7% effective); ~$1,515 property ($150K × 1.01%) = ~$3,865 total
$0 TN income tax; ~$1,005 property ($150K × 0.67%) = ~$1,005 total
TN saves ~$2,860
$28,600
$75,000
$3,525 MO income tax; ~$2,020 property ($200K × 1.01%) = ~$5,545 total
$0 TN income tax; ~$1,340 property ($200K × 0.67%) = ~$1,340 total
TN saves ~$4,205
$42,050
$100,000
$4,700 MO income tax; ~$3,030 property ($300K × 1.01%) = ~$7,730 total
$0 TN income tax; ~$2,010 property ($300K × 0.67%) = ~$2,010 total
TN saves ~$5,720
$57,200
$150,000
$7,050 MO income tax; ~$4,040 property ($400K × 1.01%) = ~$11,090 total
$0 TN income tax; ~$2,680 property ($400K × 0.67%) = ~$2,680 total
TN saves ~$8,410
$84,100
$200,000
$9,400 MO income tax; ~$5,050 property ($500K × 1.01%) = ~$14,450 total
$0 TN income tax; ~$3,350 property ($500K × 0.67%) = ~$3,350 total
TN saves ~$11,100
$111,000
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Missouri Pros & Cons

+ PROS
  • Lower combined sales tax than Tennessee: Missouri's average combined sales tax (~8.9%) is below Tennessee's (~9.55% statewide average, with many cities exceeding 10%); for heavy consumers, Missouri saves approximately $330–660/year vs Tennessee at $50,000–100,000 in spending
  • Higher property tax than Tennessee — but still moderate nationally: Missouri's ~1.01% is below the US median and far below Illinois (2.08%) or New Jersey (2.47%); on a $300,000 home, only $540/year more than Tennessee
  • St. Louis and Kansas City professional economies: Missouri's two major metros offer financial services (Edward Jones, Commerce Bancshares, Cerner/Oracle Health), aerospace (Boeing St. Louis operations), and a growing life sciences hub in St. Louis; the professional opportunity set is broader than Tennessee's Nashville-centred economy
  • No sales tax on groceries in some jurisdictions: Missouri exempts most food purchases from state sales tax (applies only 1.225% reduced rate) — significantly reducing effective sales tax burden for households; Tennessee taxes groceries at a reduced rate of 4% (plus local taxes)
− CONS
  • 4.7% income tax is the decisive disadvantage: at $100,000 income, Missouri residents pay $4,700 in state income tax; Tennessee residents pay $0 — the annual difference of $4,700 accumulates to $47,000 over a decade before accounting for property tax differences
  • Missouri income tax is not cutting aggressively: Missouri has made modest reductions (from 5.4% top rate a few years ago to 4.7%), but is nowhere near Iowa's or North Carolina's legislative trajectory toward elimination; 4.7% is relatively static
  • St. Louis urban challenges: St. Louis proper (city vs county) has complex jurisdiction issues, population loss, and public safety concerns; the St. Louis MSA's population growth has been slow compared to Nashville, Charlotte, or Raleigh
  • Income tax above national median: Missouri's 4.7% is higher than Arizona (2.5%), Georgia (5.39% but flat), North Carolina (4.5% and reducing), and comparable to Virginia — above the competitive average for states trying to attract in-migration
🎵

Tennessee Pros & Cons

+ PROS
  • Zero income tax: Tennessee's constitutional prohibition on income tax on wages (the Hall Tax on investment income was repealed in 2021) saves $4,700/year at $100,000 income vs Missouri; this saving grows proportionally with income
  • Nashville growth ecosystem: Nashville has emerged as one of the fastest-growing cities in the US — Amazon HQ2 South, Oracle campus relocation, healthcare technology (HCA Healthcare HQ, Change Healthcare, Vanderbilt Health), and music industry create a uniquely diverse $100B+ economy
  • Lower property tax than Missouri: Tennessee's ~0.67% effective rate is significantly below Missouri's ~1.01%; on a $400,000 home, approximately $1,360/year less; Memphis and Knoxville are even lower than Nashville metro rates
  • No income tax on retirement income: Tennessee has never taxed wages or retirement distributions; combined with 0% on investment income (since Hall Tax repeal), Tennessee is among the best states for all types of income
− CONS
  • Highest state sales tax in the US: Tennessee's 7% state sales rate is the nation's highest; combined with local rates averaging 2.55%, the effective combined rate (~9.55%) is the highest average combined sales tax in the US; residents pay approximately $1,000–2,000+/year more in sales taxes vs most other states depending on spending habits
  • Tennessee taxes groceries at 4% state rate: unlike many states that exempt groceries from sales tax, Tennessee applies a 4% state sales tax on food (plus local taxes); a family spending $10,000/year on groceries pays approximately $650 more in sales tax than a Missouri household
  • Nashville housing affordability crisis: Nashville median home prices have surged to $450,000–550,000+ in 2024; combined with rapid population growth, Nashville's affordability advantage vs major metros has narrowed significantly
  • Limited high-end healthcare outside Nashville: while Vanderbilt is a world-class medical centre, Tennessee outside Nashville has limited tertiary healthcare infrastructure vs Missouri's BJC HealthCare (St. Louis) and Kansas University Medical Center
FAQ

Frequently Asked Questions

Does Tennessee really have no income tax on wages?

Yes — Tennessee has zero income tax on wages, salaries, business income, and retirement distributions. Tennessee previously had the Hall Income Tax, which taxed dividends and interest income at 3% (reducing to 1% in 2020). The Hall Tax was fully repealed effective January 1, 2021. Since then, Tennessee has zero state income tax on any type of income — wages, self-employment, capital gains, dividends, interest, rental income, or retirement distributions. Tennessee's constitution only authorizes income tax on 'income derived from stocks and bonds' — and the Hall Tax was the only such tax. Its repeal was not a policy option but a constitutional-era decision, making Tennessee one of the most tax-advantaged states for income.

How does Missouri's sales tax compare to Tennessee's?

Missouri's statewide sales tax is 4.225%, with local additions averaging approximately 4.7% for a combined average of ~8.9%. Missouri does, however, tax food at a reduced 1.225% state rate, and some cities exempt certain food categories further. Tennessee's statewide sales tax is 7% — the highest state rate in the US. With local additions averaging 2.55%, Tennessee's combined average is approximately 9.55%. However, Tennessee taxes food at a reduced 4% state rate (plus local taxes). The practical difference: Missouri is somewhat cheaper on sales taxes for high-spending households and those who buy groceries frequently. For annual spending of $60,000, the Tennessee vs Missouri combined sales tax difference is approximately $400–600/year in Tennessee's favour against Missouri, but it varies significantly by county and city.

Is Nashville or Kansas City better for tech and healthcare careers?

They serve different tech niches. Nashville: healthcare technology is the dominant industry — HCA Healthcare (largest US for-profit hospital system), Envision Healthcare, Change Healthcare, HealthStream, Parallon, and dozens of health tech startups; Oracle relocated its HQ to Austin but has major Nashville operations; Amazon's HQ2 South (Nashville Operations Center of Excellence) is bringing thousands of tech jobs. Kansas City: major logistics and supply chain tech (H&R Block, Cerner/Oracle Health acquired, Garmin, Sprint/T-Mobile Midwest); financial services (Hallmark, AMC Networks, LabOne). Nashville is growing faster and has a clearer tech career trajectory; Kansas City is strong for logistics, telecom, and mid-market corporate careers. Tax advantage: Tennessee is unambiguous on income tax.

What are the best places to live in Tennessee for lower total taxes?

Tennessee property tax rates vary significantly by county: Williamson County (Franklin, Brentwood) has property tax rates of approximately 0.6–0.8% of assessed value; Rutherford County (Murfreesboro) approximately 0.55–0.7%; Shelby County (Memphis) approximately 1.3% (higher than Nashville suburbs due to Memphis city taxes); Knox County (Knoxville) approximately 0.6–0.7%; Hamilton County (Chattanooga) approximately 0.6–0.8%. The lowest-tax areas for overall burden (income = $0, property = low, sales = lower local rates) are suburban Nashville counties (Williamson, Rutherford, Wilson) and suburban Knoxville. Memphis-area residents face higher property taxes that reduce Tennessee's overall advantage. For maximum Tennessee tax benefit: suburban Nashville beats Memphis.

Does Missouri have any cities with local income taxes?

Yes — two major Missouri cities have local earnings taxes: Kansas City (1% on wages earned in or by residents of KC, regardless of state residence) and St. Louis (1% on wages earned in St. Louis city). These earnings taxes apply to residents of those cities and to non-residents working within city limits. Residents of Kansas City suburbs (Overland Park in Kansas, Lee's Summit, Olathe) who work in Kansas City still owe the 1% KC earnings tax on work income. This effectively adds 1% on top of Missouri's 4.7% state rate for Kansas City and St. Louis workers — taking their combined rate to 5.7%. Missouri's suburban and rural residents (Springfield, Columbia, Jefferson City) pay only the state 4.7% rate.
From the brief
PT38.4%−9.6 vs. headline
CY17.8%incl. 60-day rule
AE 0.0%substance required
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