Compare taxes and see how much you save moving from Tennessee to North Carolina
Tennessee has no state income tax (0%), while North Carolina charges a flat 4.5% rate. Staying in Tennessee saves $4,500/year on $100k income compared to North Carolina. Tennessee has lower property taxes (0.67% vs NC's 0.77%) and higher sales tax (9.55% vs 6.98%). Overall, Tennessee offers significant tax savings for all income levels, while North Carolina provides better schools and four seasons. Nashville-Charlotte corridor sees balanced migration.
No Income Tax
Constitutional prohibition
Flat Rate
Flat 4.5% on all income
At $100,000 income:
That is $375/month back in your pocket!
| Income | TN Tax | NC Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | $2,250 | $2,250 | $22,500 |
| $100,000 | $0 | $4,500 | $4,500 | $45,000 |
| $200,000 | $0 | $9,000 | $9,000 | $90,000 |
| $500,000 | $0 | $22,500 | $22,500 | $225,000 |
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Moving between Tennessee and North Carolina? Multi-state returns are tricky—TN has no income tax but NC does. Get matched with a CPA who specializes in 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 (NC 4.5% vs TN 0%). Over 10 years: $45,000. On $500,000 income: $22,500/year ($225,000 over 10 years). TN also has lower property tax (0.67% vs NC 0.77%). On a $500k home, TN pays $3,350/year vs NC $3,850/year—difference of $500/year. However, TN sales tax is much higher (9.55% vs 6.98%)—costs $257 more annually.
Yes, bidirectional. 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 $4,500+ annually), Nashville boom, lower cost of living. Migration drivers TN → NC: better schools (#15 vs #32), four seasons, Charlotte banking jobs, family ties.
North Carolina wins for families: better public schools (#15 vs TN #32), four seasons for kids, Research Triangle university presence, lower sales tax (6.98% vs TN 9.55%). Tennessee wins for: no income tax (save $4,500+ annually), lower property tax, Nashville music/culture. Choose NC for education/quality of life. Choose TN for tax savings/affordability.
Nashville: No income tax, music city culture, faster growth, lower total tax burden. Charlotte: Banking jobs, better schools, light rail transit, four seasons, lower sales tax. Both metros growing rapidly. Nashville seeing more tech/startup activity. Charlotte more established with banking/finance. Roughly equal cost of living. Choose based on career/lifestyle preferences.