Side-by-side tax comparison between Indiana (3.05% top rate) and Tennessee (no income tax).
| Salary | Indiana | Tennessee | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,404 | $42,298 | +$1,894 | Tennessee |
| $75K | $58,462 | $61,303 | +$2,841 | Tennessee |
| $100K | $75,103 | $78,890 | +$3,788 | Tennessee |
| $150K | $107,765 | $113,446 | +$5,681 | Tennessee |
| $200K | $141,528 | $149,103 | +$7,575 | Tennessee |
Tennessee offers higher take-home pay at every salary level. With no state income tax, Tennessee gives you a significant advantage over Indiana's 3.05% top rate. At $100K, the difference is $3,788/year — that’s $316/month.
However, cost of living matters. Indiana has a cost index of 90 while Tennessee is at 90. With similar costs of living, the tax difference is the main factor.