Side-by-side tax comparison between North Carolina (4.5% top rate) and Tennessee (no income tax).
| Salary | North Carolina | Tennessee | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,610 | $42,298 | +$1,688 | Tennessee |
| $75K | $58,771 | $61,303 | +$2,531 | Tennessee |
| $100K | $75,515 | $78,890 | +$3,375 | Tennessee |
| $150K | $108,384 | $113,446 | +$5,063 | Tennessee |
| $200K | $142,353 | $149,103 | +$6,750 | Tennessee |
Tennessee offers higher take-home pay at every salary level. With no state income tax, Tennessee gives you a significant advantage over North Carolina's 4.5% top rate. At $100K, the difference is $3,375/year — that’s $281/month.
However, cost of living matters. North Carolina has a cost index of 95 while Tennessee is at 90. With similar costs of living, the tax difference is the main factor.