State Rankings

Where Tennessee Ranks

How Tennessee compares with all 50 states and DC on the figures Alto tracks.

Sales tax

9.61%

the 2nd highest of 51

State sales tax plus the population-weighted average local rate — what shoppers actually pay at the register.

Tax Foundation (July 2026)

Minimum wage

$7.25/hr

tied for the lowest of 51

What a worker covered by federal labor law is actually paid at minimum — the state rate, or the $7.25 federal floor where that is higher.

U.S. Department of Labor, Wage and Hour Division (July 2026)

Median household income

$67,631

the 9th lowest of 50

Median annual income for a household in the state — half of households earn more, half earn less.

U.S. Census Bureau (2023)

Unemployment rate

3.5%

the 15th lowest of 51

Share of the labor force that is out of work and actively looking, seasonally adjusted. People who have stopped looking are not counted.

U.S. Bureau of Labor Statistics (June 2026)

Tennessee in context: state gas tax

RankStateGas tax
#13Arkansas25¢/gal
#13Missouri25¢/gal
#15Tennessee27¢/gal
#16Kentucky28¢/gal
#16South Carolina28¢/gal

Tennessee in context: sales tax

RankStateSales tax
#48Arkansas9.48%
#49Washington9.57%
#50Tennessee9.61%
#51Louisiana10.13%

Tennessee in context: minimum wage

RankStateMinimum wage
#32Pennsylvania$7.25/hr
#32South Carolina$7.25/hr
#32Tennessee$7.25/hr
#32Texas$7.25/hr
#32Utah$7.25/hr

Tennessee in context: median household income

RankStateHousehold income
#40Missouri$68,545
#41South Carolina$67,804
#42Tennessee$67,631
#43Oklahoma$63,603
#44Kentucky$62,417

Tennessee in context: unemployment rate

RankStateUnemployment
#11Wisconsin3.3%
#14Georgia3.4%
#15Tennessee3.5%
#16North Carolina3.6%
#16Ohio3.6%

Compare another state

In Tennessee, the sales tax is the 2nd highest in the country and the household income is the 9th lowest. Here is how Tennessee compares with every other state on the published figures Alto tracks, with a link to the source behind each one.

Rankings are a starting point, not a verdict. None of these figures are adjusted for cost of living, which varies enough between states to change what a given income or wage actually buys.

Tennessee gas tax

Drivers in Tennessee pay 27¢/gal in state gasoline tax, the 15th lowest of the 51, before the 18.4¢ federal tax that applies everywhere.

Tennessee sales tax

Tennessee charges a 7.00% state sales tax, and local rates average a further 2.61%, for about 9.61% at the register. That is the 2nd highest of the 51. Rate is not the whole story though — states differ in what they tax, and most exempt groceries.

Tennessee minimum wage

Tennessee has no state minimum wage law, so employers covered by the Fair Labor Standards Act must pay the federal minimum of $7.25 per hour — tied for the lowest of the 51 states and DC, as of July 2026.

Tennessee household income

A typical Tennessee household earns $67,631 a year, the 9th lowest of the 50. That is a raw Census figure with no adjustment for how far a dollar goes locally.

What these rankings leave out

Cost of living is the big absent variable, and it moves enough between states to reverse some of these comparisons outright. Property and income taxes are not counted here either, so a state can look cheap on sales and fuel tax while taking more overall. Treat these as specific, well-sourced data points rather than a summary of what living in Tennessee costs.

Tennessee Rankings — Frequently Asked Questions

What is the sales tax in Tennessee?
Tennessee charges a 7.00% state sales tax, and local rates average a further 2.61%, for about 9.61% at the register. That is the 2nd highest combined rate of the 51 states and DC, as of July 2026.
What is the minimum wage in Tennessee?
Tennessee has no state minimum wage law, so employers covered by the Fair Labor Standards Act must pay the federal minimum of $7.25 per hour — tied for the lowest of the 51 states and DC, as of July 2026.
What is the gas tax in Tennessee?
Tennessee levies 27¢/gal in state gasoline tax, the 15th lowest of the 51 states and DC. The federal government adds 18.4¢ per gallon on top of that everywhere. Figures are as of 2025.
What is the median household income in Tennessee?
The median household income in Tennessee is $67,631, the 9th lowest among the 50 states, per Census data for 2023. Median means half of households earn more and half earn less, and the figure is not adjusted for cost of living.
Is Tennessee a high tax state?
On the taxes ranked here, its combined sales tax is the 2nd highest in the country at 9.61% and its gas tax is the 15th lowest at 27¢/gal. Those are two taxes among many though — income and property taxes vary independently, so a state can rank low on both of these and still take more overall.