Washington County has the advantage of having some of the lowest taxes in the region. There is also no state income tax, no state property tax, and no inventory tax.
Local Property Taxes
- Washington County—$1.9798
- Johnson City—$1.6200
Personal and real property are taxed per $100 of the assessed value. Personal property is assessed at 30% of its appraised value, commercial real estate at 40%, and residential real estate at 25%.
If you have a $1,000,000 commercial property assessment in Jonesborough, TN:
$1,000,000 x 40% = $400,000
$3.2903 (Combined City-County Tax Rate) / $100 = 0.032903
$400,000 x 0.032903 = $13,161.20 annual property tax bill
Franchise & Excise Tax
- Franchise tax is 0.25% of the greater of net worth or real and tangible property in Tennessee. The minimum tax is $100.00.
- Excise tax is 6.5% of Tennessee taxable income.
Sales & Use Tax
- State Tax: The sales tax rate on food is 5%. All other tangible personal property, unless specifically exempted, is 7%.
- State Single Article Rates: 2.75% on any single item sold in excess of $1600 but not more than $3200.
- Use Tax: Same as the sales tax rate.
- Local Tax: 2.50% in Johnson City (in Washington County), Jonesborough, and Washington County.