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Published on: 03/05/2026

Tennessee ranked fourth most tax-friendly state

Tennessee has been named the fourth most tax‑friendly states in the country by ConsumerAffairs. The consumer review platform ranked all states across five major tax categories including income, sales, and property taxes with Tennessee earning the fourth spot for its lack of income tax and generally low-to-moderate tax rates across the other categories. Tennessee does have the highest alcohol tax in the country at $1.29 per gallon and second-highest sales tax in the country at 7%, which the platform said was mitigated by generous tax breaks elsewhere. The state’s property tax was also ranked the seventh lowest. Tennessee was outranked by Alaska, Wyoming, and New Hampshire.