Taxes in Jackson
Jackson's tax picture combines Tennessee's genuine no-income-tax status with a real, high 9.75% combined sales tax and a property tax bill this research pass could not resolve to one precise, current figure -- a real, disclosed gap rather than an estimate.
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Learn moreNo state income tax -- a real, constitutionally protected fact
Tennessee has never taxed wages or salaries, and a 2014 constitutional amendment permanently bars any future wage/salary income tax. The old Hall Tax (on interest and dividend income only) was fully repealed effective January 1, 2021. This applies to a Jackson move exactly as it would anywhere else in Tennessee.
A real, high combined sales tax -- 9.75%, at the state-law maximum local rate
Jackson/Madison County's combined sales tax rate is 9.75%: Tennessee's 7% state base rate plus Madison County's 2.75% local-option rate, the maximum local rate Tennessee law allows, with no additional City of Jackson municipal layer. IMPORTANT: this is Madison County's rate -- a separate, unrelated Jackson County, TN (seat: Gainesboro, in the Upper Cumberland) shows up in some searches and describes a different place entirely.
Property tax: a real, disclosed gap rather than a guessed figure
This pass could not resolve a single verified, current nominal City of Jackson + Madison County millage-rate pair to compute a precise effective rate. One third-party aggregator estimated $1,408/year in property tax on a $195,000 home -- an estimate, not a computed rate from primary sources. Confirm directly with the Madison County Trustee ((731) 423-6027) and City of Jackson Revenue Office ((731) 425-8210) before budgeting.
Retirement-related tax advantages apply statewide
Tennessee has no tax on Social Security benefits and, having repealed the Hall Tax, no tax on investment income either -- real, state-level advantages that apply to a Jackson retirement exactly as anywhere else in the state. See retiring for more.
Key takeaways
- Tennessee's no-wage-income-tax status is real and constitutionally protected (2014 amendment); the Hall Tax on investment income was fully repealed effective 2021.
- Jackson/Madison County's combined sales tax is 9.75% -- 7% state + 2.75% county, the state-law maximum local rate -- among the highest combined rates in the US.
- A precise, current, verified property tax rate for Jackson/Madison County was NOT resolved this pass -- one aggregator estimate cites $1,408/year on a $195,000 home, but confirm directly with the Madison County Trustee before budgeting.
- Tennessee taxes neither Social Security benefits nor investment income (post-Hall-Tax-repeal) -- real, state-level retirement advantages.
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