A new SmartAsset study says Tipton County is the sixth best place to save money in Tennessee.
The a New York financial technology company weighed metrics based on income, cost of living, purchasing power and taxes to determine the places where residents have the best opportunity to save money.
The county’s median income is $57,212 and the cost of living $32,440.
SmartAsset said the study calculated the average cost of living in each county for a household with two adults (one working). They then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living.
To better compare income tax burdens across counties, SmartAsset applied relevant deductions and exemptions before calculating federal, state and local income taxes for a family making $50,000 annual income in each location. Next, they created an effective tax rate index for each county, which reflects the ratio of income taxes to the assumed $50,000 annual income.
Finally, SmartAsset calculated the weighted average of the indices to yield an overall best places to save score. They used a three-fourths weighting for purchasing power and a one-fourth weighting for tax rates, then indexed the final number so higher values reflect places that are better to save.
Other areas of Tennessee ranked in the study include:
- Williamson
- Wilson
- Rutherford
- Sumner
- Fayette
- Tipton
- Moore
- Loudon
- Robertson
- Montgomery
Author: Echo Day
Echo Day is an award-winning journalist, photographer and designer. She is currently The Leader's managing editor.
