Compare taxes and see how much you save moving from North Carolina to Tennessee
North Carolina has a flat 4.5% income tax, while Tennessee has no state income tax (0%). Living in Tennessee saves $4,500/year on $100k income. North Carolina has slightly higher property taxes (0.77% vs TN's 0.67%) but much lower sales tax (6.98% vs TN's 9.55% highest). Overall, Tennessee offers better tax advantages, but North Carolina provides better schools and four seasons. The I-40 corridor sees balanced bidirectional migration.
Flat Rate
Flat 4.5% on all income
No Income Tax
Constitutional prohibition
At $100,000 income:
That is $375/month back in your pocket!
| Income | NC Tax | TN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,250 | $0 | $2,250 | $22,500 |
| $100,000 | $4,500 | $0 | $4,500 | $45,000 |
| $200,000 | $9,000 | $0 | $9,000 | $90,000 |
| $500,000 | $22,500 | $0 | $22,500 | $225,000 |
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Moving between North Carolina and Tennessee? Multi-state returns are tricky—NC has income tax, TN doesn't. Get matched with a CPA who specializes in I-40 corridor state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →On $100,000 income, Tennessee saves $4,500/year in income tax (NC 4.5% vs TN 0%). TN also has lower property tax (0.67% vs NC 0.77%). On a $400k home, TN pays $2,680/year vs NC $3,080/year—difference of $400/year. However, TN sales tax is much higher (9.55% vs NC 6.98%)—costs $257 more annually. Net savings: $4,643/year. Over 10 years: $46,430.
Yes, balanced bidirectional flow. In 2023, 15,847 people moved NC → TN and 14,204 moved TN → NC (net: TN gained 1,643). Migration drivers NC → TN: no income tax (save $4,643+ annually), Nashville boom, lower property tax. Migration drivers TN → NC: better schools (#15 vs #32), four seasons, Charlotte banking jobs, lower sales tax, family ties.
North Carolina/Charlotte wins for families: better public schools (#15 vs #32), four seasons for kids, lower sales tax (6.98% vs 9.55%), Research Triangle university presence. Tennessee/Nashville wins for: no income tax (save $4,643 annually), lower property tax, music culture, faster job growth. Choose NC for education/quality of life. Choose TN for tax savings/career growth.
Tennessee wins for retirees: zero income tax on retirement income (Social Security, pensions, 401k withdrawals), lower property tax (0.67% vs 0.77%), no state estate tax. North Carolina wins for: lower sales tax (6.98% vs 9.55%), better healthcare access, four seasons, university towns. Most retirees choose TN for tax savings. Choose NC for quality of life.