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There’s been a recent influx of out-of-state people moving to Tennessee, and we understand why! Tennessee has a little taste of everything, making it a great place to live. You’ll find your niche and never want to leave. Most importantly, though, Tennessee is one of the most monetarily-friendly states - there’s low taxes and a low cost of living, especially compared to one of America’s most famous states, New York.

Expenses

It’s no secret that New York can be expensive, particularly near the city. In fact, New York is 92.4% more expensive than Knoxville, and that’s simply including living costs. On average, New Yorkers pay 29% more at a restaurant, 58.8% more for groceries, 67.5% more for transportation, 22.4% more for clothing and 74% more for housing. Similarly, New Yorkers pay 3.7 times more for childcare and 2.2 times more for entertainment. Though New York has an allure, is it worth the high cost of living?

Medical

Another huge spend is healthcare and medical treatment. Typically, healthcare is paid by volume, meaning you’re paying for how much you have. Tennessee is different; In 2019, Tennessee changed its Medicaid agency, TennCare’s, system so that you’re paying by value. As a result, Tennessee taxpayers are saving money while TennCare members are receiving better care. In addition, Tennessee has many major hospitals to provide all sorts of care, even specialty care. In fact, our community, WindRiver, has 5 hospitals within 30 minutes from its gates; we can’t forget the easy access to pharmacies and doctors!

Taxes

New York has very unattractive taxes - lots of them and all very expensive. New Yorkers are expected to pay income tax, property tax, sales tax, estate tax and payroll tax. In fact, the state’s income tax rates are the third highest in the nation, only beaten by California and Hawaii. Meanwhile, Tennessee is a very tax-friendly state. There is no income tax, no state inheritance tax, no personal property tax and has a very low real estate property tax.

Here’s New York’s monetary overview in comparison to Tennessee’s as of 2021:

New York

  • Median household income: $68,486
  • Total taxes paid: $28,742.62
  • Total tax burden: 41.97%
  • Total annual income tax paid: $16,762.18
  • Total annual property tax paid: $4,356.21
  • Total sales tax paid: $7,624.23

Tennessee

  • Median household income: $53,320
  • Total taxes paid: $15,558.83
  • Total tax burden: 29.18%
  • Total annual income tax paid: $8,796.98
  • Total annual property tax paid: $1,513.62
  • Total sales tax paid: $5,248.23