Compare taxes and see how much you save moving from Tennessee to Florida
Tennessee and Florida are two of the nine states with zero income tax — making the real tax comparison about everything else: sales tax, property tax, and total cost of living. Tennessee charges the highest combined sales tax in the nation (averaging 9.55% state + local), while Florida averages 7%. On property tax, Tennessee is meaningfully cheaper: effective rates of 0.67% vs Florida's 0.89% — on a $350,000 home, Tennessee saves approximately $770/year. The defining Florida disadvantage for homeowners is insurance: coastal and even inland homeowner's insurance has surged to $4,000–8,000+/year following Hurricane Ian and market exits. Renters in Florida capture the sales tax advantage without insurance exposure. Retirees favour Florida for its lack of estate tax and warm climate; Tennessee offers lower total costs with Nashville's growing economy as a draw.
No Income Tax
Hall Tax eliminated 2021; 7% state sales tax (highest in US)
No Income Tax
Constitutional prohibition; 6% state sales tax; hurricane insurance crisis
At $100,000 income:
That is $125/month back in your pocket!
| Income | TN Tax | FL Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 income tax; ~$850 property (median home); ~$1,250 sales tax = ~$2,100 total state/local | $0 income tax; ~$1,100 property (median home); ~$875 sales tax = ~$1,975 total (+ insurance) | Similar — FL slight edge for renters | $0 |
| $75,000 | $0 income tax; ~$1,200 property; ~$1,750 sales tax = ~$2,950 total | $0 income tax; ~$1,400 property; ~$1,300 sales tax = ~$2,700 total (+ insurance) | FL saves ~$250 on taxes (renters); TN better for homeowners | $2,500 |
| $100,000 | $0 income tax; ~$1,680 property; ~$2,390 sales tax = ~$4,070 total | $0 income tax; ~$2,350 property; ~$1,750 sales tax = ~$4,100 total (+ $4K+ insurance) | TN saves ~$4,000+ for homeowners (insurance included); renters similar | $15,000 |
| $150,000 | $0 income tax; ~$2,100 property; ~$3,580 sales tax = ~$5,680 total | $0 income tax; ~$2,900 property; ~$2,600 sales tax = ~$5,500 total (+ $5K+ insurance) | TN saves ~$5,000+ for homeowners; FL saves ~$180 for renters | $18,000 |
| $200,000 | $0 income tax; ~$2,800 property; ~$4,775 sales tax = ~$7,575 total | $0 income tax; ~$3,900 property; ~$3,500 sales tax = ~$7,400 total (+ insurance) | Comparable on pure taxes; TN better for homeowners w/ insurance | $10,000 |
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Moving between Tennessee and Florida? Partial-year residency returns, multi-state filing, and domicile changes can be complex even for zero-income-tax states. Get matched with a CPA who specialises in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →Tennessee's combined state and local sales tax averages approximately 9.55% — the highest in the nation. Florida's combined rate averages approximately 7.02%. On annual household spending of $40,000 (a reasonable estimate for a $100K household after housing and savings): Tennessee sales tax costs ~$3,820; Florida costs ~$2,808. Florida saves approximately $1,000/year on sales tax alone. However, this is often offset by Florida's higher insurance costs, making Tennessee's total cost advantage significant for homeowners.
Both are excellent retirement destinations, but with different profiles. Florida advantages: warm winters, beaches, no estate tax, active retirement communities (The Villages, Sarasota, Naples). Tennessee advantages: lower insurance costs, lower total housing costs, less hurricane risk, established retirement communities in the Smoky Mountains and around Nashville. For retirees on Social Security and pension income: both states tax $0 on those. For retirees with large estates and investment portfolios: both have no estate tax. Financially, Tennessee's lower insurance and property costs give it a slight edge; Florida wins on climate and lifestyle.
No. Tennessee eliminated all personal income taxes — including the Hall Tax on interest and dividends — effective January 1, 2021. All income is completely untaxed at the state level in Tennessee: wages, salaries, Social Security, pensions, IRA distributions, dividends, interest, and capital gains. The only state-level taxes on residents are the sales tax on purchases and property tax on real estate.
Significantly, yes. Florida's homeowner's insurance market has become one of the most expensive in the nation following Hurricane Ian (2022), Hurricane Irma (2017), and multiple other storms. Average premiums are $4,000–6,000/year statewide; coastal and South Florida premiums of $8,000–15,000+ are common. Multiple private insurers have withdrawn from Florida, pushing homeowners onto Citizens Insurance. This is a real and growing cost that must be factored into any comparison with Tennessee, where typical homeowner's insurance runs $1,200–2,000/year. For a homeowner moving from Tennessee to Florida, the insurance difference alone ($2,000–5,000+/year) may offset the sales tax advantage.
Tennessee's effective property tax rate averages approximately 0.67% of assessed value. Florida's averages approximately 0.89%. On a $400,000 home: Tennessee ~$2,680/year vs Florida ~$3,560/year — approximately $880/year difference. Florida offers the homestead exemption ($50,000 off assessed value for primary residences) plus the Save Our Homes cap (3% max annual reassessment increase), which can reduce Florida property taxes significantly for long-term homeowners. Tennessee has a homestead exemption of $30,000 for qualifying seniors/disabled residents. Neither state's property taxes are among the highest nationally.