Side-by-side tax comparison between Tennessee (no income tax) and Texas (no income tax).
| Salary | Tennessee | Texas | Difference | Winner |
|---|---|---|---|---|
| $50K | $42,298 | $42,298 | −$0 | Tennessee |
| $75K | $61,303 | $61,303 | −$0 | Tennessee |
| $100K | $78,890 | $78,890 | −$0 | Tennessee |
| $150K | $113,446 | $113,446 | −$0 | Tennessee |
| $200K | $149,103 | $149,103 | −$0 | Tennessee |
Tennessee offers higher take-home pay at every salary level. With no state income tax, Tennessee gives you a significant advantage over Texas's similarly tax-free environment. At $100K, the difference is $0/year — that’s $0/month.
However, cost of living matters. Tennessee has a cost index of 90 while Texas is at 93. With similar costs of living, the tax difference is the main factor.