Although Tennessee's sales tax is the second-highest in the nation at up to 10%, the Volunteer State remains one of the tax-friendliest states. That's because income tax is non-existent, and a 1% limited tax on dividends and interest phased out in 2020. Property taxes are also below the national average, which makes good news for both middle-class families as well as retirees. Considering Tennessee doesn't tax Social Security benefits either, the state is a popular choice for long-term relocation.

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