I don't think Chattanooga has some special exemption from federal income tax.

The downtown area in Chattanooga has a pretty nice revitalization in the last few years too. There’s a startup incubator there that appeared to have decent momentum. It surprised me as a kid I lived near there in the 90’s and it definitely had a "run down ex-manufacturing town" vibe. But I’d be much prefer moving there than the Bay Area if I had to choose.