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Yes, Tennessee is a good place to retire, especially if you want to stretch your retirement savings, enjoy scenic views, and keep access to big-city amenities without the big-city prices.
Indeed, Tennessee offers a rare balance. You’ll find affordable housing, low taxes, and a variety of communities: from peaceful lakefront towns to lively music cities. Many retirees say they chose Tennessee for its mix of natural beauty, low cost of living, and tax-friendly policies.
And the numbers support that decision. Tennessee ranks #1 in the nation for the lowest state and local tax burden on retirees, according to Kiplinger. That could mean thousands in savings each year compared to states with higher tax rates.
In this post, we’ll cover:
The biggest pros and cons of retiring in Tennessee
The best places and retirement communities for a fulfilling lifestyle
How Tennessee stacks up in cost of living and taxes compared to other states
Overview
Yes, Tennessee is a good place to retire due to its low taxes and cost of living, but also due to its natural beauty and amenities, with the best choice depending on individual preferences for location and lifestyle.
Here's a more detailed breakdown:
Financial Benefits
Tennessee boasts no state income tax and low property taxes, which can significantly stretch retirement savings.
Lifestyle and Amenities
The state offers diverse living options, from lively music cities like Nashville to serene lakefront towns, catering to various retirement lifestyles.
Natural Attractions
Tennessee is home to the Great Smoky Mountains and numerous state parks, providing ample opportunities for outdoor activities and scenic views.
Healthcare Access
Major cities in Tennessee have nationally recognized medical centers, but healthcare access may be limited in rural areas.
Climate and Weather
The state experiences four distinct seasons with generally mild winters, but also has hot, humid summers and occasional severe weather like thunderstorms and tornadoes.
Other Notable Considerations
Transportation: Public transit is limited outside of major cities, potentially requiring reliance on personal vehicles or ride services.
Pros and Cons of Retiring in Tennessee
When you're thinking about where to spend your golden years, you want to weigh both the perks and the drawbacks. Retiring in Tennessee gives you some of the strongest financial benefits in the country, but there are lifestyle factors to think through, too.
Pros of Retiring in Tennessee
1. No State Income Taxes on Retirement Income
Tennessee doesn’t tax earned income, pension payments, 401(k) withdrawals, or Social Security benefits. This makes it one of the most tax-friendly states for retirees. According to the Tax Foundation, Tennessee is one of only nine states without a state income tax.
This means retirees can rely more on their savings and still maintain a good lifestyle without worrying about paying a chunk to the state every year.
2. Low Cost of Living
Tennessee’s cost of living is lower than the national average, according to BestPlaces.net. Housing, in particular, is a major savings point. The median home value in Tennessee is around $258,000, compared to the national median of $348,000.
In smaller cities like Johnson City or Chattanooga, you can find affordable housing with access to amenities, hospitals, and outdoor activities, which is a major win for budget-conscious retirees.
3. Mild Climate and Four Seasons
Retirees who enjoy a changing landscape love Tennessee’s four seasons. Winters are short and typically mild, while spring and fall bring comfortable temperatures and colorful scenery. Snowfall is minimal in most areas outside of the eastern mountain regions.
The state’s mild climate also means lower heating bills in winter, which adds to your savings.
4. Natural Beauty and Outdoor Recreation
Tennessee is packed with natural attractions like the Great Smoky Mountains, the Tennessee River, and hundreds of state parks and lakes. The Smokies alone receive over 12 million visitors a year, and they’re free to enter, giving retirees endless options for hiking, fishing, and scenic drives.
Whether you're near eastern Tennessee’s mountains or the rolling hills of Cumberland County, the state delivers on natural beauty and peaceful living.
5. Rich Culture, Music, and History
From Beale Street in Memphis to the music scene of downtown Nashville, Tennessee offers a deep connection to American music, art, and history. The Volunteer State is home to major museums, Civil War landmarks, and local festivals that help residents feel connected to their community.
There’s also a strong sense of pride and friendliness here. Many retirement communities build social events into their calendars to help seniors stay connected and engaged.
6. Quality Healthcare Access in Cities
Major urban hubs like Nashville, Memphis, and Knoxville offer nationally recognized medical centers, including Vanderbilt University Medical Center and UT Medical Center. For many retirees, easy access to top-rated hospitals is a dealbreaker, but Tennessee’s cities deliver.
Cons of Retiring in Tennessee
1. Healthcare Access in Rural Areas
While cities have excellent care, rural areas can have fewer specialists and longer wait times. A 2023 report from the University of Tennessee Medical Center showed that about 22% of the state’s counties are considered "healthcare shortage areas" for seniors.
If you plan to settle in a remote small town, be sure to research the nearest hospital or primary care provider.
2. Hot, Humid Summers
Tennessee summers can be tough, especially in the western and southern parts of the state. July temperatures often hit the 90s, and humidity levels are high. That can make outdoor time uncomfortable and may affect those with respiratory issues.
3. Weather Risks
The state sees frequent thunderstorms, heavy rain, and occasional tornadoes. According to NOAA, Tennessee had over 800 flood events and more than 100 tornadoes between 2013 and 2023. Some homeowners in flood-prone areas may need additional insurance, which could raise housing costs.
4. Limited Public Transit
Outside of major cities, public transportation options are minimal. Retirees who no longer drive may find it harder to get around in suburban or rural areas. Ride services like Uber are available in cities, but not everywhere.
Best Cities and Communities to Retire In
Retirees don’t all want the same thing. Some dream of walking trails and lakes. Others prefer suburban living near a big hospital. In Tennessee, you can have both: whether you're seeking a peaceful neighborhood, an artsy downtown, or a planned retirement community with amenities built around a social lifestyle.
Chattanooga
Median Home Price: ~$279,000
What It Offers:
Set along the Tennessee River with stunning views of the Appalachian Mountains.
Walkable downtown with coffee shops, galleries, and restaurants.
Rated one of the most affordable cities in the U.S., with access to the great outdoors.
Why Retirees Like It: Balanced lifestyle, strong sense of community, and lower healthcare costs compared to the national average.
Franklin
Median Home Price: ~$735,000
What It Offers:
A well-preserved historic downtown with boutiques, events, and top-tier dining.
Close proximity to Nashville for cultural events and advanced medical centers.
Recognized for low crime and high quality of life.
Why Retirees Like It: Upscale suburban living with Southern charm and premium amenities.
Knoxville
Median Home Price: ~$311,000
What It Offers:
Home to the University of Tennessee, creating a vibrant, youthful culture.
Minutes from the Great Smoky Mountains for hiking, fishing, and scenic drives.
Lower housing and healthcare costs than the national average.
Why Retirees Like It: A mix of affordability, educational access, and natural surroundings.
Nashville Suburbs (Brentwood, Hendersonville, Mount Juliet)
Median Home Prices:
Brentwood: ~$950,000
Hendersonville: ~$435,000
Mount Juliet: ~$465,000
What It Offers:
Quieter neighborhoods with easy access to downtown Nashville and its world-class music scene.
Excellent hospitals like Vanderbilt University Medical Center nearby.
Suburban convenience without sacrificing culture or care.
Why Retirees Like It: The best of both worlds: peaceful living near major services.
Tellico Village and Fairfield Glade
Median Home Price:
Tellico Village: ~$375,000
Fairfield Glade: ~$340,000
What It Offers:
Gated, planned retirement communities with lakes, golf courses, clubs, and trails.
Social events and fitness programs tailored to seniors.
Located near the natural beauty of eastern Tennessee.
Why Retirees Like It: Built specifically for retirees who want an active lifestyle with luxury touches.
Planning Your Move: Budgeting, Logistics & State Comparisons
Once you’ve chosen your ideal city or retirement community, it’s time to figure out the numbers and how retiring in Tennessee stacks up against other popular states. This includes everything from cost of living and property taxes to how you’ll get there if you’re moving from out of state.
Cost of Living Breakdown
Tennessee consistently ranks among the most affordable places for retirees. The overall cost of living is about 12% below the national average, with housing and healthcare costs being major areas of savings.
Sources: U.S. Census Bureau, Numbeo, Medicare.gov, Zillow 2025
This low cost of living gives retirees the freedom to spend more on leisure, travel, or simply saving for future care needs, while maintaining a stable, fulfilling lifestyle.
Tennessee vs. Other Retirement States (Tax Comparison)
One of the biggest draws to retire in Tennessee is how tax-friendly the state is, especially compared to nearby options like Georgia or North Carolina.
Sources: Tax Foundation, Social Security Administration, SmartAsset, Zillow (Q1 2025)
Here’s what gives Tennessee a tax edge:
No state income taxes, including on Social Security benefits, pensions, or withdrawals from retirement accounts
Low property taxes (state average 0.56%) and available relief programs for seniors over 65
No tax on interest or dividends as of 2021 (Hall Income Tax fully repealed)
Ready to Make Tennessee Home? We’ll Help You Get There
If Tennessee offers the low cost of living, natural beauty, and tax-friendly benefits you’ve been looking for, then it might be the right place to spend your golden years.
At AmeriFreight Car Shipping, we’ve helped thousands of retirees move their vehicles confidently, whether that’s because they’re leaving behind California’s high housing prices or Florida’s tropical heat. We work with a network of vetted carriers experienced in handling everything from pickup to delivery, so you can focus on settling into your new life.
Get a free quote today and take the next step toward your dream retirement in Tennessee.
Frequently Asked Questions (FAQs)
What are the pros and cons of retiring in Tennessee?
Pros include no state income taxes, affordable cost of living, access to natural beauty like the Great Smoky Mountains, and a variety of retirement communities. Cons include hot, humid summers, limited public transit in rural areas, and varied healthcare access outside major cities.
Does Tennessee have good healthcare for retirees?
Yes, in cities like Nashville, Knoxville, and Chattanooga, retirees have easy access to nationally ranked hospitals. However, rural communities may lack specialists or large medical facilities, which could impact long-term care needs.
At what age do seniors stop paying property taxes in Tennessee?
Tennessee offers property tax relief for seniors age 65 and older with limited income. This includes tax freezes and rebates depending on the county. Check your local county for eligibility details.
Is Tennessee tax-friendly for retirees?
Yes. Tennessee is one of the most tax-friendly states in the nation for retirees. There are no state income taxes, and Social Security benefits are not taxed. It also has one of the lowest average property tax rates in the U.S.
Disclaimer: This post is for general information and not financial advice. Consult a professional before making major decisions.
