5 days ago
6
Tara Losinski
Mon, May 11, 2026 astatine 8:05 AM CDT 6 min read
With nary income tax, Tennessee tin look similar an charismatic enactment for American families — and businesses — looking to little costs. However, arsenic the Financial Times reports, a resulting roar successful the state's capital, has driven up income and spot tax. (1)
Tom Morales, proprietor of Nashville's Acme Feed & Seed, told the quality outlet that erstwhile helium opened the spot taxation measure for the four-floor euphony venue this past October, helium was shocked to spot it had gone from $129,000 a twelvemonth to $589,000. (2)
Must Read
-
Thanks to Jeff Bezos, you tin present become a landlord for arsenic small arsenic $100 — and no, you don't person to woody with tenants oregon hole freezers. Here's how
-
Robert Kiyosaki says this 1 plus volition surge 400% successful a twelvemonth and begs investors not to miss this ‘explosion’
-
Dave Ramsey warns astir 50% of Americans are making 1 large Social Security mistake — here’s however to hole it ASAP
"You conscionable unfastened up the envelope and say, 'What? This can't beryllium right,'" said Morales, who had wanted to permission the concern to his children. "Having a concern you tin springiness to your kids is thing you imagination about. I was like, 'Oh my God, I've conscionable ruined their lives.'" (3)
"We were reasoning it would spell up 30, 40 percent; I could ne'er person imagined it was going to spell up 380 oregon 400 percent," added his daughter, Lauren.
A backing shortfall
As the Tax Foundation notes, states with precocious spot taxes tin trust heavy connected them to marque up for debased — oregon nary — taxation successful different categories, similar zero income taxation successful the lawsuit of Tennessee (although it does person the second-highest combined authorities and section taxation rate, astatine 9.61%, down Louisiana, 10.11%, but up of Washington, 9.51%). (4)
Overall, Tennessee really ranks among the lowest, astatine 41, for spot taxation rates by state, according to 2024 figures, the latest information disposable from the Tax Foundation. (4) As a percent of owner-occupied lodging value, the authorities had a 0.56% spot taxation rate, little than fractional that of New Jersey, with the highest, astatine 1.88%.
Property taxes are a section government's biggest root of funding, accounting for 70% of taxation collected locally successful the U.S. successful 2023, according to the Tax Foundation. (4) They spell to moving schools, hospitals, constabulary and occurrence departments, roads, water, sewer and different indispensable services — and erstwhile much radical are utilizing those services, cities and counties request much backing to run them.
Nashville was among the 10 fastest-growing cities successful the U.S. successful 2025, and has accrued successful size by an mean of 1.37% each twelvemonth betwixt 2022 and 2025, present with a colonisation of much than 1.36 million. (5)
English (CA) · 
English (US) · 
Spanish (MX) ·