Lifestyle
Retirees are drawn to Tennessee for its low cost of living and tax friendliness.
Adam Cecil
Published April 11th, 2024
Adam Cecil
•
Published April 11th, 2024
Table of Contents
Key Takeaways
Tennessee is a state filled with mountains, lakes, and rivers, but it also has plenty of big-city living.
The state’s cities are filled with attractions and entertainment, as well as access to healthcare.
Although there’s no state income tax, you will pay a higher sales tax rate than other areas of the country.
Situated in the southeastern United States, the Volunteer State boasts a diverse landscape that ranges from the majestic peaks of the Great Smoky Mountains to the vibrant city life of Nashville and Memphis. With its mild climate, affordable cost of living, and thriving arts and music scene, Tennessee provides retirees with a welcoming and dynamic environment to enjoy their golden years.
Whether you're drawn to the outdoor recreational opportunities of East Tennessee, the rich history and culinary delights of Middle Tennessee, or the lively cultural attractions of West Tennessee, the state offers something for everyone.
Is Tennessee a good place to live for retirees?
Retirees are drawn to Tennessee for its low cost of living and tax friendliness. Even the best places to retire in Tennessee will have a high sales tax, but the low housing prices can make up for that.
But one of the best things about Tennessee retirement is its climate. You’ll get mild winters while still enjoying all four seasons. There are also plenty of lakes, mountains, and historical landmarks to keep you busy.
Is Tennessee tax-friendly for seniors?
Tennessee is tax-friendly for retirees in large part because they don’t levy any kind of state income tax. This means that your Social Security and private or public pension income is tax free, as are withdrawals from retirement accounts like 401(k)s or IRAs. If you’re working a full- or part-time job, that income will be tax free, as will other income from investments or property.
Do seniors in Tennessee pay property taxes over 65?
Seniors generally pay property taxes in Tennessee, though some qualifying seniors may be able to apply for property tax relief or a property tax freeze.
What benefits do seniors get in Tennessee?
Tennessee’s Commission on Aging & Disability offers a number of programs for retirees, including nutrition services, transportation assistance, and free help navigating the Medicare system.
Where is the best place to retire in Tennessee?
Here are the 10 best cities to retire in in Tennessee.
Chattanooga
CITY POPULATION: 181,099
SHARE OF POPULATION 65+: 17.4%
COST OF LIVING FOR RETIREES: 5.5% below the national average
MEDIAN HOME VALUE: $288,493
MEDIAN RENT: $1,650
TAX RATING FOR RETIREES: Tax Friendly
Chattanooga is one of the first places people think of when they’re curious about retiring in Tennessee. Both Chattanooga and the nearby mountain community of Signal Mountain have plenty of walking trails and outdoor activities. You’ll also have access to all the amenities you’d get with big-city living, including plenty of restaurants and shops.
Franklin
CITY POPULATION: 83,454 SHARE OF POPULATION 65+: 14.8% COST OF LIVING FOR RETIREES: 2.9% above the national average MEDIAN HOME VALUE: $842,173 MEDIAN RENT: $2,690 TAX RATING FOR RETIREES: Tax Friendly
History and suburban life make Franklin one of the best cities to retire in Tennessee. Just 20 miles south of downtown Nashville, Franklin is perhaps best known as the site of two Civil War battles: 1863’s Battle of Franklin and the Battle of Franklin in 1864. You’ll find plenty of historic attractions, mixed with more dining and shopping options than you’ll find anywhere in Tennessee.
Pigeon Forge
CITY POPULATION: 6,343
SHARE OF POPULATION 65+: 18.2%
COST OF LIVING FOR RETIREES: 9% below the national average
MEDIAN HOME VALUE: $462,304
MEDIAN RENT: $2,000
TAX RATING FOR RETIREES: Tax Friendly
It would be impossible to talk about the best retirement communities in Tennessee without mentioning the Smoky Mountains. Pigeon Forge is a neighboring tourist area with easy access to the mountains and ski slopes of Gatlinburg. You’ll get beautiful views, as well as all the shopping and dining options that draw tourists to the town.
Nashville
CITY POPULATION: 670,820
SHARE OF POPULATION 65+: 11.7%
COST OF LIVING FOR RETIREES: 3% below the national average
MEDIAN HOME VALUE: $270,290
MEDIAN RENT: $2,150
TAX RATING FOR RETIREES: Tax Friendly
Costs in Nashville have been rising, but it’s still affordable compared to other big cities. If you like downtown living, Nashville could be one of the best places to retire in Tennessee. You’ll get plenty of shopping and restaurants around downtown, with your pick of live music venues in the famed Broadway area.
Crossville
COUNTY POPULATION: 12,071
SHARE OF POPULATION 65+: 21.1%
COST OF LIVING FOR RETIREES: 7.6% below the national average
MEDIAN HOME VALUE: $291,023
MEDIAN RENT: $1,700
TAX RATING FOR RETIREES: Tax Friendly
Golfers looking for the best small cities to retire should definitely take a peek at Crossville. The town is home to multiple golf courses, including Stonehenge, the top-rated golf course in the state. The high 65-plus population and low cost of living make it a great choice for any retiree.
Knoxville
CITY POPULATION: 190,740
SHARE OF POPULATION 65+: 14.3%
COST OF LIVING FOR RETIREES: 8.4% below the national average
MEDIAN HOME VALUE: $339,962
MEDIAN RENT: $1,895
TAX RATING FOR RETIREES: Tax Friendly
Another city that’s an example of why Tennessee is a good state to retire in is Knoxville. You’ll have a short, one-hour drive to the Smokies combined with access to many of the amenities you’d get in a big city. The Tennessee River is a large part of Knoxville living, giving you waterfront dining and plenty of recreational activities.
Germantown
CITY POPULATION: 41,333
SHARE OF POPULATION 65+: 22.8%
COST OF LIVING FOR RETIREES: 11.9% below the national average
MEDIAN HOME VALUE: $478,201
MEDIAN RENT: $2,250
TAX RATING FOR RETIREES: Tax Friendly
This upscale community on the outskirts of Memphis has a good reason to be on the list of where to retire in Tennessee. The town is known for its 1868 railroad depot and easy access to famous downtown Memphis hotspots like Beale Street. But the city itself has a suburban feel and a high 65-plus population, making it great for retirees.
Winchester
CITY POPULATION: 9,375
SHARE OF POPULATION 65+: 20.4%
COST OF LIVING FOR RETIREES: 3.1% below the national average
MEDIAN HOME VALUE: $320,281
MEDIAN RENT: $1,200
TAX RATING FOR RETIREES: Tax Friendly
If you’re looking for one of the best small towns in Tennessee to retire, Winchester should be on your list. Tims Ford Lake makes it perfect for fishing and boating enthusiasts. You’ll also be just a short drive from Chattanooga, Nashville, and Huntsville, Alabama.
Kingsport
CITY POPULATION: 55,442
SHARE OF POPULATION 65+: 24.1%
COST OF LIVING FOR RETIREES: 10.9% below the national average
MEDIAN HOME VALUE: $228,479
MEDIAN RENT: $1,200
TAX RATING FOR RETIREES: Tax Friendly
If you’re looking at which city has the best weather in Tennessee, Kingsport would be close to the top of the list. You’ll get slightly colder winters in Kingsport, but the summers are milder than other areas of the state. The cost of living and high 65-plus population make it an all-around great place for retiring.
Collierville
CITY POPULATION: 51,324
SHARE OF POPULATION 65+: 14.6%
COST OF LIVING FOR RETIREES: 12.2% below the national average
MEDIAN HOME VALUE: $497,423
MEDIAN RENT: $2,200
TAX RATING FOR RETIREES: Tax Friendly
When you’re looking at any list of the best places to retire in Tennessee, another top West Tennessee city is Collierville. Just a 20-minute drive from Memphis, Collierville has all the amenities of suburban living, along with a charming downtown area and plenty of shopping and dining.
Bottom Line
Some of the cities on this list are growing, but they all retain their tax friendliness and Southern charm. But your individual needs are different than anyone else’s. Retirable can help connect you with a plan that will ensure you’re prepared to fully enjoy retired life.
Share this advice
Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
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Northeastern U.S. Best Places To Retire
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Midwestern U.S. Best Places To Retire
Western U.S. Best Cities To Retire
Share this advice
Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
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