Compare taxes and see how much you save moving from Tennessee to Texas
Tennessee and Texas both offer 0% state income tax, making them top destinations for tax-conscious relocators. The key differences lie in other taxes: Tennessee has the nation's highest combined sales tax (9.55%) but low property taxes (0.48%). Texas has lower sales tax (8.24%) but high property taxes (1.60%). For homeowners, Tennessee often comes out ahead; for renters with high spending, Texas may be better.
No Income Tax
Constitutional prohibition since 2014
No Income Tax
Constitutional prohibition on income tax
At $100,000 income:
That is Equal income tax back in your pocket!
| Income | TN Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | $0 | $0 | $0 |
| $75,000 | $0 | $0 | $0 | $0 |
| $100,000 | $0 | $0 | $0 | $0 |
| $150,000 | $0 | $0 | $0 | $0 |
| $250,000 | $0 | $0 | $0 | $0 |
| $500,000 | $0 | $0 | $0 | $0 |
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Moving from Tennessee to Texas? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →For homeowners, Tennessee often wins. A $400K home costs ~$1,920/year in TN property tax vs ~$6,400 in TX—a $4,480 annual difference. Texas wins on sales tax (8.24% vs 9.55%), but you'd need to spend $340,000+ annually for TX sales tax savings to offset the property tax difference.
Yes. Tennessee's constitution was amended in 2014 to prohibit income tax on wages (Article II, Section 28). Texas constitution (Article VIII, Section 24-a) requires voter approval for any income tax, which has never passed. Both provide strong long-term certainty.
Tennessee generally has lower housing costs. Nashville median home: ~$450K. Austin: ~$550K. Houston: ~$350K. Dallas: ~$400K. Tennessee's lower property taxes amplify housing affordability. However, Texas has more diverse job markets in tech, energy, and healthcare.
Tennessee edges ahead for retirees. Neither taxes retirement income or Social Security. But Tennessee's 0.48% property tax saves retirees thousands annually on their home. Tennessee also has no estate tax. Both are in the top 10 most tax-friendly states for retirees.