Where else in this country can you live near so many mountains, lakes, beautiful scenery, in a metropolitan area or in a small town or in a rural area or in a resort area, near a major university, in a high-tech community, experience four seasons, mild winters, beautiful Autumn colors, low crime rate, pay no state income tax, pay low property tax, go hunting, go fishing, go hiking, go boating, go golfing, go horseback riding, etc. - and all this with a low cost of living, friendly people, and an ideal place to raise a family or retire?

No State Income Tax The Tennessee income tax does not apply to salaries and wages, but most income from stocks, bonds and notes receivable is taxable.

All taxable dividends and interest which exceed the 1,250 single exemption or the 2,500 joint exemption are taxable at the rate of 6 percent. All persons living in or companies doing business in Tennessee for more than 6 months must pay this tax by filing Form INC 250, Individual Income Tax Return by April 17. Additional downloadable state tax forms may be obtained from the Department of Revenue's Web site.  Sales tax Generally, the state's sales and use tax rate is 7 percent. Food remains taxed at 6 percent, but candy, dietary supplements and prepared food are taxed at the increased 7-percent rate. Local sales taxes also are collected and those rates vary from 1.5 percent to 2.75 percent.

Very Low Property Tax  Personal and real property taxes • Tennessee does not have a homestead exemption. However, there is a property tax relief program for the elderly, disabled and/or veterans. Program requirements may be found at the Tennessee Comptroller's Web site. Assessments are based on a percentage of fair market value of the property as of each Jan. 1, the required percentage varying according to statutory classifications based on actual or potential use: Residential property at 25 percent Farm property at 25 percent Commercial and industrial property at 40 percent Public utility property at 55 percent Business personal property at 30 percent Tax rates are expressed as an amount per 100 of assessed value and are set by the governing body of the county or city. The delinquency date is generally March 1 following the tax year, but some cities have earlier delinquency dates by private act or local ordinance. Depending on the location of the residence, the homeowners will be assessed property taxes from the city only, the city and the county, or the city, the county, and a special School/Fire District rate.