Georgia vs Tennessee: Tax & Cost Comparison

2026

Side-by-side Georgia vs Tennessee comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. GA has 5.39% flat income tax; TN has none — adjacent Southeastern states often compared for retiree/business relocation.

Written and reviewed by Konstantin Iakovlev · Methodology · Updated

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Tax / Cost Factor Georgia Tennessee
State income tax (top rate) 5.39% (flat) None
State sales tax 4.00% 7.00%
Avg. effective property tax 0.87% 0.56%
Minimum wage (2026) $7.25/hr $7.25/hr
State Disability Insurance (SDI) No No
Paid Family Leave No No
Median home price (Q4 2025) $350,000 $350,000
Foreclosure type non-judicial non-judicial
BEA Regional Price Parity (2024) 90.5 91
Median household income (2024) $71,355 $65,730
Median 2-bedroom rent (Q4 2025) $1,520/mo $1,530/mo

Worked example: $75,000 single filer, 2026

For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:

  • Georgia: estimated state income tax ≈ $2,830, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 4.00% on consumption.
  • Tennessee: estimated state income tax $0 (no state income tax), plus federal $7,300, FICA $5,738, sales tax 7.00% on consumption.

Property tax depends entirely on home value. On a $400,000 home: Georgia ≈ $$3,480/year; Tennessee ≈ $$2,240/year.

Why this comparison? GA has 5.39% flat income tax; TN has none — adjacent Southeastern states often compared for retiree/business relocation.

Frequently asked questions

Which is cheaper to live in: Georgia or Tennessee?

By BEA Regional Price Parity (2024), Georgia has a cost-of-living index of 90.5 and Tennessee is 91 (US average = 100). Median household income: Georgia $71,355, Tennessee $65,730. Median 2-bedroom rent: Georgia $1,520/mo, Tennessee $1,530/mo. Georgia is the lower-cost state by this measure.

Does Georgia or Tennessee have lower income tax in 2026?

Tennessee has no state income tax; Georgia has a top rate of 5.39%. Tennessee is the clearly lower-income-tax state.

What about property taxes in Georgia vs Tennessee?

Georgia's average effective property tax rate is 0.87% (e.g., $3,480/year on a $400,000 home). Tennessee's rate is 0.56% ($2,240/year on $400K). Tennessee has the lower property tax burden.

Where is the minimum wage higher: Georgia or Tennessee?

Georgia's 2026 minimum wage is $7.25/hour; Tennessee's is $7.25/hour. Both have the same minimum wage.