NASHVILLE, Tenn. (WKRN) — Tennessee is one several states without a state income tax on earned income. However, a recent study reveals that top earners in the state still pay millions in taxes.
SmartAsset, a personal finance website, analyzed the most recent data from the IRS for personal income tax returns in 2021 to rank states by the total income tax paid by the top 1%.
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The top earners in the Volunteer State have the 17th highest tax payments in the nation, according to the study.
In fact, SmartAsset reports that Tennessee’s top 1% paid $16,260,168 in income taxes, falling behind California, New York and Florida, which all ranked among the top three.
Eight states, including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming, do not levy a state income tax. However, the Tax Foundation reports that Tennessee and Washington have some of the highest sales tax rates in the country.
Tennessee’s population expected to hit 8 million by 2040, researchers say