As April 15th draws near, a lot of us are thinking about income taxes. The Tax Foundation has concluded that the average American had to work from January 1st to April 12th to pay federal and state income taxes that will be owed in 2011.
The average Tennessean reached tax freedom day on March 27th, 2011. Only Mississippi reached tax freedom day before Tennessee. I am somewhat surprised that Mississippi beat us since Mississippi has a state income tax that applies to all types of income. Tennessee’s income tax only applies to dividends and interest. Our favorable income tax laws have been an important factor for a lot of high income individuals who have migrated to Tennessee.