Moving from California to Franklin, Tennessee removes state tax on wages: on California's 2025 schedules, a married couple with $1 million of taxable income owes about $89,532 before credits, and Tennessee taxes the same wages at $0. Prices are closer than many expect, since Franklin's Zillow typical home value ($925,870, August 2026) is almost the same as the City of Los Angeles ($929,572). Property tax works differently, and the sections below put a number on each change.
At a glance
| California top rate (2025) | 12.3%, plus 1% above $1M of taxable income |
|---|---|
| Tennessee tax on wages | None; Hall tax on interest and dividends repealed from 2021 |
| Franklin typical home value | $925,870 (Zillow, Aug 2026) |
| California typical home value | $764,158 (Zillow, Aug 2026) |
| Franklin sales tax | 9.75% (7% state + 2.75% Williamson County) |
| Williamson County 2026 conforming loan limit | $1,029,250 (one unit) |
Income tax: California's brackets against Tennessee's zero
California's 2025 rates
California taxed 2025 income at rates from 1% to 12.3%. For married couples filing jointly, the 9.3% rate starts above $145,448 of taxable income and runs to $742,958, and the 12.3% rate starts at $1,485,906. For single filers the 12.3% rate starts at $742,953. On top of the brackets, California adds a 1% Mental Health Services Tax on taxable income above $1 million, which makes the top marginal rate 13.3%.
| 2025 rate | Married filing jointly, taxable income up to | Single, taxable income up to |
|---|---|---|
| 1% | $22,158 | $11,079 |
| 2% | $52,528 | $26,264 |
| 4% | $82,904 | $41,452 |
| 6% | $115,084 | $57,542 |
| 8% | $145,448 | $72,724 |
| 9.3% | $742,958 | $371,479 |
| 10.3% | $891,542 | $445,771 |
| 11.3% | $1,485,906 | $742,953 |
| 12.3% | Above $1,485,906 | Above $742,953 |
These are the 2025 schedules from the California Franchise Tax Board; 2026 brackets were not checked for this guide.
What that costs at $500,000, $1 million and $2 million
Run through the 2025 schedules before any credits, the California bill on taxable income looks like this. Tennessee's tax on the same wages is $0.
| Taxable income | Married filing jointly | Single | Tennessee |
|---|---|---|---|
| $500,000 | about $39,377 | about $44,766 | $0 |
| $1,000,000 | about $89,532 | about $103,837 | $0 |
| $2,000,000 | about $217,673 (incl. $10,000 Mental Health Services Tax) | not calculated | $0 |
The figures ignore credits and California's residency and part-year rules. Confirm your own numbers, and the date your California residency ends, with a CPA licensed in both states.
Tennessee taxes no wages, and no longer taxes investment income
Tennessee has no personal income tax on wages or salaries. Its only individual income tax, the Hall tax on interest and dividends, was repealed for tax periods beginning January 1, 2021. Federal income tax still applies as it did in California. Business owners should know Tennessee does tax businesses: a franchise tax of 0.25% of Tennessee net worth and an excise tax of 6.5% on net earnings. The Tennessee income tax guide covers the details.
No state estate or inheritance tax
Tennessee's inheritance tax does not apply to deaths after December 31, 2015, and the state has no estate tax or gift tax of its own. The federal estate tax exclusion is $15,000,000 for deaths in 2026. The estate and inheritance tax guide has an example on a Franklin home.
Property tax: Prop 13 against Tennessee's 25% assessment
What you leave behind with Proposition 13
Under Proposition 13, California's general property tax rate is limited to 1% of assessed value plus voter-approved bond rates. Property is reassessed to market value when it changes hands or is newly built, and otherwise the assessed value can rise no more than 2% a year. If you have owned in California for a long time, your assessed value may be far below what the home would sell for, and your tax bill with it.
How Williamson County taxes a $1.5 million home
Tennessee works from the county Assessor's appraised value. Homes are assessed at 25% of that value, and the bill is the assessed value times the rate per $100 set each year by the county and any city. Williamson County revalues all property to market value on a four-year cycle, most recently in 2025, so there is no long-hold discount of the Prop 13 kind.
| Where the home is (2026 rate) | Annual tax on a $1.5M appraisal |
|---|---|
| Unincorporated Williamson County ($1.30) | $4,875 |
| City of Franklin, outside the special school district ($1.566) | $5,872.50 |
| City of Franklin, inside the special school district ($2.2433) | $8,412.38 |
The examples assume appraised value equals price. Look up any parcel in the Williamson County Property Assessor's database, and see the Williamson County property tax guide for every rate and due date.
Sales tax and the taxes you pay at closing
Sales tax of 9.75% in Franklin
With no wage tax, Tennessee leans on sales tax. The state rate is 7%, and Williamson County adds a local rate of 2.75%, for a combined 9.75% on most purchases in Franklin. A $10,000 taxable purchase carries $975 in sales tax, before any exemption or cap that might apply to it.
Transfer and mortgage tax at purchase
Tennessee charges a realty transfer tax of $0.37 per $100 of the price or value, and by statute the buyer is liable for it. A mortgage tax of 11.5 cents per $100 applies to the loan amount after the first $2,000, paid by the borrower. On a $1.5 million purchase with 20% down, the two come to $5,550 and $1,377.70, or $6,927.70 together. Who actually pays what is set in your contract; the Tennessee closing costs guide covers the rest of the bill.
What your home budget buys: California and Franklin side by side
Zillow's typical home value is the cleanest like-for-like comparison: the same method, the same month (August 2026), across both states.
| Place | Zillow typical value |
|---|---|
| Beverly Hills, CA | $3,667,785 |
| Palo Alto, CA | $3,563,763 |
| Manhattan Beach, CA | $3,286,680 |
| Menlo Park, CA | $2,866,713 |
| Santa Monica, CA | $1,667,060 |
| Irvine, CA | $1,492,449 |
| San Francisco, CA | $1,424,767 |
| San Jose, CA | $1,362,808 |
| College Grove, TN (ZIP 37046) | $1,300,186 |
| Arrington, TN (ZIP 37014) | $1,273,897 |
| Franklin, TN (ZIP 37069) | $1,023,572 |
| San Diego, CA | $985,158 |
| Franklin, TN (ZIP 37067) | $953,759 |
| Los Angeles, CA | $929,572 |
| Franklin, TN (city) | $925,870 |
| Franklin, TN (ZIP 37064) | $911,270 |
| California (statewide) | $764,158 |
| Tennessee (statewide) | $334,108 |
How far $1.5 million goes
A $1.5 million budget sits above the typical value in every Franklin-area ZIP code, including College Grove's 37046 at $1,300,186. In California it is close to the typical value in Irvine ($1,492,449) and below Santa Monica ($1,667,060). So the change is less about price per home and more about where in the market you land: in Franklin, $1.5 million buys from the upper part of the market rather than the middle. The Franklin neighborhoods guide shows which subdivisions sit there.
For financing, Williamson County's 2026 conforming loan limit is $1,029,250 for a one-unit home. With 20% down, a price up to about $1,286,562 keeps the loan conforming; above that, it is a jumbo loan. The jumbo loan guide runs the monthly payments.
How prices have moved
Over the five years to August 2026, Zillow's typical value rose 32.43% in Franklin, against 13.92% for California statewide and 9.01% for the City of Los Angeles. That is history, not a forecast, but it means a California seller who last checked Franklin prices several years ago should expect them to be higher now.
Insurance and utilities: get quotes before you commit
Home insurance
No reliable source compared Tennessee and California home insurance premiums for this guide, so treat it as a quote, not an assumption. Ask for a quote on the specific home before your inspection period ends, and ask the seller for their current premium and any claims history. On rural land, ask the insurer which features of the property set the price.
Electricity, water and internet
Middle Tennessee Electric reports a 2026 average residential cost of 12.45 cents per kWh, but confirm which electric provider serves the address. Outside city limits, water may come from a utility district or a private well, and internet options vary by road. Ask the seller for 12 months of utility bills.
Franklin schools
Two public districts serve Franklin addresses. Franklin Special School District runs pre-kindergarten through eighth grade inside part of the city, and its students go on to Williamson County Schools high schools. Williamson County Schools serves the rest of Franklin and the county, with about 41,000 students in 52 schools for 2026-27, and reports a class of 2025 ACT composite of 25.3 against a Tennessee average of 19.3. You must live in Williamson County to attend, and zones can change when a school fills or a new one opens.
Neither the city name nor the ZIP code tells you which schools serve a home. Use both districts' address tools, linked in the Franklin schools guide, and see the private schools guide for published tuition.
Steps for moving from California to Franklin
- Run your tax numbers first. Ask a CPA licensed in both states when your California residency ends and how your move year will be taxed.
- Set a price band by ZIP code. Use the Zillow values above, then narrow to subdivisions and tracts.
- Get financing straight. Know whether your loan will be under the $1,029,250 Williamson County limit or a jumbo.
- Sign a written buyer agreement. Since August 17, 2024, agents working with buyers through an MLS need a written agreement before touring, in Tennessee as in California.
- Check each address. Look up the tax district, both school district tools, the water source and the electric provider.
- Quote insurance during the inspection period. Do this before the deadline in your contract, not after.
- Budget closing taxes. The transfer and mortgage taxes are $6,927.70 on a $1.5 million purchase with 20% down.
The Census Bureau puts Franklin's mean travel time to work at 23.9 minutes (ACS 2020-2024). If you are comparing areas, I can send recent $1 million-plus sales for the ZIP codes you are weighing.
Common questions
Is it cheaper to live in Tennessee than California?
By home values, yes: Zillow's typical value was $334,108 in Tennessee and $764,158 in California in August 2026. Franklin is an exception at $925,870, close to the City of Los Angeles. Tennessee taxes no wages, while California's 2025 rates run to 12.3%, plus 1% above $1 million. Franklin's combined sales tax is 9.75%, so the savings depend on how you earn and spend.
Is it a good idea to move from California to Tennessee?
That depends on your income, your home and your work, so start with the numbers. On California's 2025 schedules, a married couple with $1 million of taxable income owes about $89,532 before credits; Tennessee taxes those wages at $0. A $1.5 million Franklin home carries $4,875 to $8,412.38 a year in 2026 property tax, depending on its tax district. Check both before deciding.
Does Tennessee have a state income tax?
Tennessee has no state income tax on wages or salaries. Its only individual income tax, the Hall tax on interest and dividends, was repealed for tax periods beginning January 1, 2021, so 2020 was the last year it applied. Federal income tax still applies. Tennessee does tax businesses through a franchise tax and an excise tax, and it relies heavily on sales tax.
How do property taxes in Tennessee compare to California?
California's Proposition 13 limits the general rate to 1% of assessed value plus voter-approved bonds and caps yearly increases at 2% until a sale. Tennessee assesses homes at 25% of appraised value and multiplies by local rates; Williamson County revalues all property every four years, last in 2025. In 2026 a $1.5 million Williamson County home pays $4,875 to $8,412.38 a year.
How much house does $1.5 million buy in Franklin vs California?
In Franklin, $1.5 million is above Zillow's August 2026 typical value in every nearby ZIP code, the highest being College Grove's 37046 at $1,300,186, so it buys from the upper part of the market. In California, $1.5 million is close to Irvine's typical value of $1,492,449 and below Santa Monica ($1,667,060) or Palo Alto ($3,563,763). Zillow does not publish square footage per dollar.
Is moving to Williamson County, TN worth it?
Judge it on cost and fit, not reputation. Williamson County's Zillow typical value was $929,377 in August 2026, up 31.7% over five years. It has no wage tax, a 9.75% combined sales tax in Franklin and a 2026 county-only property tax rate of $1.30 per $100 of assessed value. Its public schools report a class of 2025 ACT composite of 25.3.
What is the conforming loan limit in Williamson County, TN?
The 2026 conforming loan limit for a one-unit home in Williamson County is $1,029,250, above the national baseline of $832,750 because the county is in the Nashville area, which the Federal Housing Finance Agency treats as high-cost. With 20% down, a purchase price up to about $1,286,562 keeps the loan conforming. Larger loans are jumbo loans with lender-specific terms.
Sources
- California Franchise Tax Board: 2025 California Tax Rate Schedules
- California Franchise Tax Board: SB 326 bill analysis (Mental Health Services Tax, R&TC 17043)
- San Luis Obispo County Assessor: History and Impact of Proposition 13
- Tennessee Department of Revenue: Hall Income Tax
- Tennessee Department of Revenue: Franchise and excise tax due dates and rates
- Tennessee Department of Revenue: Inheritance Tax
- Higgins Estate Group: Inheritance tax and gift tax in Tennessee
- IRS: What's new, estate and gift tax
- Tennessee Department of Revenue: Local Sales Tax
- Tennessee Department of Revenue: Realty Transfer and Recordation Tax Manual (March 2022)
- Williamson County Trustee: 2026 Property Tax Rates & Calculator
- Tennessee Comptroller: How to figure your tax bill
- Williamson County Assessor: Purpose of a Reappraisal
- Zillow Research: Home Value Index (ZHVI), August 2026
- FHFA: Full county loan limit list 2026
- FHFA: Conforming loan limit values for 2026
- NAR: Settlement FAQ (September 2024)
- Middle Tennessee Electric: Residential Rates
- Franklin Special District: FAQ
- Williamson County Schools: About Us
- Williamson County Schools: School Zones
- U.S. Census Bureau: QuickFacts, Franklin city, Tennessee; Williamson County, Tennessee
Brianna Morant
I have worked in real estate for more than 20 years. In 2013 I founded Oak Street Real Estate Group with Benchmark Realty, and I lead every listing the team takes on. Here I focus on homes from $1 million in Franklin, Leiper's Fork and College Grove. If you are thinking of selling, I would be glad to tell you what your home could sell for.
Realtor®, Benchmark Realty, LLC. General information, not legal, tax or lending advice.
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