Editing Tennessee (section)

===Taxation===
{{see also|State income tax}}
Tennessee has a reputation as a low-tax state and is usually ranked as one of the five states with the lowest tax burden on residents.<ref>{{cite news|last=Stebbins|first=Samuel|date=September 27, 2018|title=Tax policy: States with the highest and lowest taxes|url=https://www.usatoday.com/story/money/taxes/2018/04/06/states-highest-and-lowest-taxes-3-6/482944002/|work=USA Today|access-date=June 5, 2020}}</ref> Despite being low-tax, it is ranked third among U.S. states for fiscal health.<ref>{{Cite web |title=STATE FISCAL RANKINGS {{!}} 2018 EDITION |url=https://www.mercatus.org/publication/3-ranking-states-fiscal-condition-tennessee |access-date=2023-08-03 |website=George Mason Univ.|date=October 9, 2018 }}</ref> It is one of nine states that do not have a [[state income tax|general income tax]]; the [[sales tax]] is the primary means of funding the government.<ref>{{cite news|last=Loudenback|first=Tanza|date=February 6, 2020|title=There are 9 US states with no income tax, but 2 of them still tax investment earnings|url=https://www.businessinsider.com/personal-finance/states-with-no-income-tax-map|work=Business Insider|access-date=June 5, 2020}}</ref> The [[Hall income tax]] was imposed on most [[dividend]]s and [[interest]] at a rate of 6% but was completely phased out by 2021.<ref>{{cite news|last=Pare|first=Mike|date=February 1, 2019|title=Tennessee on its way to becoming a bona fide no-income-tax state in 2021|url=https://www.timesfreepress.com/news/edge/story/2019/feb/01/hall-income-tax-ending-2021/487137/|work=[[Chattanooga Times Free Press]]|access-date=June 5, 2020}}</ref> The first $1,250 of individual income and $2,500 of joint income was exempt from this tax.<ref>{{cite web|url=https://www.tn.gov/revenue/taxes/hall-income-tax/due-date-and-tax-rates.html|title=Due Date and Tax Rates|author=<!--Not stated-->|website=tn.gov|publisher=Tennessee Department of Revenue|access-date=June 5, 2020}}</ref> [[Property tax]]es are the primary source of revenue for local governments.<ref name=tacir2002/>

The state's sales and [[use tax]] rate for most items is 7%, the second-highest in the nation, along with Mississippi, Rhode Island, New Jersey, and Indiana. Food is taxed at 4%, but candy, dietary supplements, and prepared foods are taxed at 7%.<ref>{{cite web|url=https://revenue.support.tn.gov/hc/en-us/articles/202989425-What-are-the-state-and-local-sales-tax-rates-in-Tennessee-#:~:text=Effective%20July%201%2C%202017%2C%20the,the%20applicable%20local%20tax%20rate.|title=What are the state and local sales tax rates in Tennessee?|author=<!--Not stated-->|date=December 11, 2017|website=tn.gov|publisher=Tennessee Department of Revenue|access-date=June 5, 2020|archive-date=June 5, 2020|archive-url=https://web.archive.org/web/20200605101114/https://revenue.support.tn.gov/hc/en-us/articles/202989425-What-are-the-state-and-local-sales-tax-rates-in-Tennessee-#:~:text=Effective%20July%201%2C%202017%2C%20the,the%20applicable%20local%20tax%20rate.|url-status=dead}}</ref> Local sales taxes are collected in most jurisdictions at rates varying from 1.5% to 2.75%, bringing the total sales tax between 8.5% and 9.75%. The average combined rate is about 9.5%, the nation's highest average sales tax.<ref>{{cite news|last=Sher|first=Andy|date=July 27, 2019|title=Yet again, Tennessee combined state, local sales tax rates nation's highest|url=https://www.timesfreepress.com/news/breakingnews/story/2019/jul/27/yet-again-tennessee-combined-state-local-sale/499940/|work=[[Chattanooga Times Free Press]]|access-date=June 5, 2020}}</ref> [[Intangible property]] tax is assessed on the shares of stockholders of any loan, investment, insurance, or for-profit cemetery companies. The assessment ratio is 40% of the value times the jurisdiction's tax rate.<ref name=tacir2002>{{cite report|last1=Green|first1=Harry A.|last2=Chervin|first2=Stan A.|last3=Lippard|first3=Cliff|last4=Joseph|first4=Linda|date=February 2002|title=The Local Property Tax in Tennessee|url=https://www.tn.gov/content/dam/tn/tacir/documents/LOCAL_PROPERTY_TAX.pdf|publisher=[[Tennessee Advisory Commission on Intergovernmental Relations]]|access-date=June 5, 2020}}</ref> Since 2016, Tennessee has had no inheritance tax.<ref>{{Cite web |url=https://www.tn.gov/revenue/taxes/inheritance-tax.html |title=TN Department of Revenue |access-date=October 30, 2019 |archive-url=https://web.archive.org/web/20191023211105/https://www.tn.gov/revenue/taxes/inheritance-tax.html |archive-date=October 23, 2019 |url-status=live}}</ref>