Side-by-side tax comparison between North Dakota (2.5% top rate, graduated) and Tennessee (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tennessee has no state income tax, while North Dakota uses a graduated system with rates of 0-1.95-2.5%. On a $100K salary, this creates a state tax difference of $1,625/year that Tennessee residents simply don’t pay.
North Dakota’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $3,250/year, while at $50K it’s only $813.
Tennessee wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | North Dakota | Tennessee | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,670 | $34,320 | +$650 | Tennessee |
| $50K | $41,543 | $42,355 | +$813 | Tennessee |
| $60K | $49,415 | $50,390 | +$975 | Tennessee |
| $75K | $60,319 | $61,538 | +$1,219 | Tennessee |
| $100K | $77,500 | $79,125 | +$1,625 | Tennessee |
| $120K | $91,245 | $93,195 | +$1,950 | Tennessee |
| $150K | $111,314 | $113,751 | +$2,438 | Tennessee |
| $200K | $145,637 | $148,887 | +$3,250 | Tennessee |
| $250K | $179,202 | $183,264 | +$4,063 | Tennessee |
| $300K | $210,454 | $215,329 | +$4,875 | Tennessee |
Take-home pay only tells part of the story. North Dakota has a cost of living index of 92 while Tennessee is at 90 (national average = 100).
With similar costs of living (92 vs 90), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $84,239 in North Dakota vs $87,917 in Tennessee.
For a single earner at $100K filing jointly, take-home becomes $83,085 in North Dakota and $84,710 in Tennessee \u2014 a difference of $1,625. The gap remains similar regardless of filing status.
On paper, moving from North Dakota to Tennessee would save $1,625/year on a $100K salary, or $8,125 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,625/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.