Compare taxes and see how much you save moving from South Carolina to Tennessee
Tennessee wins decisively on income tax — its 0% rate saves $6,400/year on $100,000 income compared to South Carolina’s 6.4%. For retirees, both states are competitive: SC offers a $15,000 retirement income deduction for residents 65+, but Tennessee’s zero income tax means all retirement income is completely untaxed. South Carolina strikes back on property tax (0.57% vs Tennessee’s 0.71%) and sales tax (up to 9% vs Tennessee’s 9.55% average — tied for highest in the US). For working earners, Tennessee is a clear winner; for retirees in lower income brackets or those valuing lower property and sales taxes, South Carolina has legitimate appeal.
Flat (reducing to 6%)
Flat 6.4% income tax (target 6% by end of 2026 phase-down); 6% state sales tax; very low property ~0.57%
No Income Tax
Zero income tax since Hall Tax repeal in 2021; 7% state sales tax with highest combined rate in US ~9.55%
At $100,000 income:
That is $533/month back in your pocket!
| Income | SC Tax | TN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $3,200 | $0 | $3,200 | $32,000 |
| $75,000 | $4,800 | $0 | $4,800 | $48,000 |
| $100,000 | $6,400 | $0 | $6,400 | $64,000 |
| $150,000 | $9,600 | $0 | $9,600 | $96,000 |
| $250,000 | $16,000 | $0 | $16,000 | $160,000 |
| $500,000 | $32,000 | $0 | $32,000 | $320,000 |
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Moving between South Carolina and Tennessee? Partial-year residency, domicile changes, and South Carolina’s rate phase-down require expert handling. TaxHub connects you with licensed CPAs who specialise in state tax moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Talk to a CPA About Your State Move →On $100,000 income, moving from South Carolina to Tennessee saves $6,400/year in income tax (SC 6.4% vs TN 0%). However, Tennessee has slightly higher property tax (0.71% vs SC 0.57%) and higher sales tax (9.55% average vs SC up to 9%). On a $350,000 home, property tax difference is approximately $490/year more in TN. Accounting for higher sales tax on $40,000 annual spending, Tennessee residents pay approximately $220 more per year in sales tax. Net annual savings moving SC to TN at $100,000 income: approximately $5,690/year. Over 10 years: $56,900.
Both states are excellent for retirement, with different strengths. Tennessee has zero income tax, meaning all retirement income (Social Security, pensions, IRA withdrawals) is completely untaxed regardless of amount. South Carolina offers a $15,000 retirement income deduction for residents 65+ and has lower property taxes (0.57% vs TN 0.71%) and lower sales tax. For retirees with modest retirement income under $50,000: South Carolina’s deduction reduces the income tax disadvantage significantly. For affluent retirees with high retirement income: Tennessee’s zero tax rate is substantially better. Tennessee also has lower property taxes than SC’s already-low rate for retirees in high-value homes.
Tennessee relies on sales tax as a primary revenue source precisely because it has no income tax. The state 7% rate plus local county/city taxes averaging 2.55% produce the 9.55% average combined rate — tied for highest in the US. Tennessee taxes groceries at 4% (most states exempt food completely). This means lower and middle-income residents pay a higher share of income in sales tax compared to higher earners. Tennessee’s zero income tax is regressive overall — it benefits high earners disproportionately while the high sales tax burdens lower earners relatively more.
Nashville wins on income tax savings ($6,400+/year at $100K), larger job market, and higher average salaries. Charleston wins on property tax (SC 0.57% vs TN 0.71%), lower sales tax, coastal lifestyle, and significantly lower housing costs (Charleston median ~$400K vs Nashville ~$450K+). For career-focused workers in healthcare, tech, or finance: Nashville’s larger economy and zero income tax create compelling long-term wealth-building advantages. For those prioritising lifestyle, coastal access, or retirement: Charleston’s lower total cost of living and South Carolina’s retirement deduction make it the more nuanced choice.