Even with new transit surcharge, Nashville’s total tax burden among the lowest

Even with proposed sales tax increases to create a robust transit system for Nashvillians, the tax burden on most Nashville residents will be well below the median for all cities.

The Research Center at the Chamber recently released an analysis of potential tax burdens Nashville households at various income levels. The tax burden rates include Nashville's current tax rates as well as the proposed sales tax increase that will serve as the main source of funding for transit improvements in the Let’s Move Nashville plan.

To calculate the tax burden at various income levels, the dollar value of state and local taxes - income, property, sales and auto taxes - were added together and divided by the household income at $25,000, $50,000, $100,000 and $150,000. You can read the full report here.

At the $50,000 income level, the tax burden after the total sales tax increase of $.01 is just 7%. This is well below the median tax burden of all cities, which is 8.6%. In fact, at every income level other than $25,000, the tax burden will be well below the national median.

To help mitigate any tax burden, the Let’s Move Nashville plan proposes to give free transit passes to households earning at or below 100 percent of the area median income. Furthermore, the Let’s Move Nashville plan calls for a comprehensive transit system that will help more Nashville residents reliably travel to work and education opportunities, which will help everyone find more economic success.

The Let’s Move Nashville plan is available online for anyone who is curious. You can sign a petition pledging your support for transit in Nashville at TransitForNashville.com.

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