Compare Minnesota vs Tennessee Paychecks
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 With 9.85% in Minnesota and no income tax in Tennessee, someone earning $75,000 faces about $7,388 in annual tax variance. Tennessee's advantage lies in no income tax. corporate workers populations have been trending toward Tennessee, though retirees continue finding value in Minnesota despite the premium.
The spread between Minnesota (9.85%) and Tennessee (no income tax) creates noticeable paycheck differences. At $75,000, you're facing roughly $7,388 in annual tax variance. How much that matters depends on your broader financial picture.
🔑 Key Differences
- **State income tax**: Minnesota at 9.85% vs Tennessee at no income tax
- **Annual savings** (on $75,000): Tennessee saves you ~$7,388
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Minnesota | Tennessee |
|---|---|---|
| State Income Tax | 5.35% - 9.85% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $3,040
Take Home: $36,960
|
State Tax: $0
Take Home: $40,000
+$3,040
|
| 💰 On $60,000 Salary |
State Tax: $4,560
Take Home: $55,440
|
State Tax: $0
Take Home: $60,000
+$4,560
|
| 💰 On $100,000 Salary |
State Tax: $7,600
Take Home: $92,400
|
State Tax: $0
Take Home: $100,000
+$7,600
|
| Cost of Living | Minnesota offers moderate living costs that help offset higher taxes. Minneapolis-St. Paul provides metropolitan amenities with housing prices well below coastal markets - quality homes in good suburbs often sell for $300,000-400,000. Rochester and Duluth offer better value. Property taxes can be substantial, funding strong schools and services. Heating costs run high during severe winters. Groceries and services cost near national averages. Despite high state taxes, your net income typically provides comfortable lifestyle thanks to moderate housing costs and excellent public services that reduce other expenses. | Tennessee costs vary by region. Nashville housing has appreciated substantially - median prices often exceed $400,000 in desirable areas. Memphis, Chattanooga, and Knoxville offer better value with homes typically $200,000-350,000. Smaller cities provide exceptional affordability. Sales tax reaches 9-10% in many areas. Property taxes moderate. The no-income-tax advantage creates real financial benefit despite high sales tax. |
Pros & Cons
Minnesota
✓ Advantages
- Strong job market in healthcare, retail, and technology
- Excellent quality of life and education
- Good public services funded by higher taxes
- Minneapolis-St. Paul offers urban amenities
- Strong sense of community
⚠ Considerations
- High state income tax (up to 9.85%)
- Very cold winters with heavy snow
- Higher cost of living than some neighboring states
- Property taxes can be substantial
- Sales tax reaches 7-8% in many areas
Tennessee
✓ Advantages
- No state income tax on wages
- Lower cost of living than most states
- Growing job markets especially in Nashville
- No state estate or inheritance tax
- Mild climate in most areas
⚠ Considerations
- High sales tax (often 9-10% total)
- Limited public transportation outside cities
- Hot humid summers
- Some rural areas have limited opportunities
- Property taxes vary significantly by county
Bottom Line
On pure tax math, Tennessee comes out ahead by about $7,388 per year at $75,000 (no income tax versus 9.85%). Minnesota makes up ground through no income tax, which matters considerably to many people. The right choice depends on whether you prioritize direct savings or value what Minnesota offers in {factor} and overall lifestyle.📢 Share This Comparison
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