Retire by state
Retiring in Tennessee
Tennessee trades hot, humid summers and tornado season for no state income tax, lakes, and the most-visited national park in the country.
A fit if
Retirees who want to keep their full income with no state income tax, plus mountains, lakes, and live music within reach.
Hard look if
People sensitive to heat and humidity, or who would worry about spring tornadoes and storms across the state.
Figures verified May 31, 2026.
Cost of living
92
BEA index, U.S. = 100
State income tax
None
No broad income tax
Social Security
Not taxed
2026 state treatment
Town guides
4
Researched towns in-state
How the plan models Tennessee
The state lines the calculator actually changes.
These are the assumptions the planner applies for Tennessee. They are blended, middle-bracket planning figures, not a tax return. Exemptions, county rules, and your own income mix can move the real number.
Cost of living
92
BEA regional price parities put Tennessee about 8.1% below the U.S. average cost level. The U.S. average is 100.
BEA Regional Price ParitiesState income tax
None
Tennessee has no broad state income tax, but property tax, insurance, sales tax, vehicle costs, and local prices still belong in the plan. AARP lists Tennessee among states that do not tax IRA and 401(k) distributions in the summary used here.
Tax FoundationSocial Security
Not taxed
Tennessee does not tax Social Security benefits under the current state-tax summary used here.
AARP / IRS Pub. 915Property tax
0.7%
Property tax is local, but the Tennessee state-level planning rate used here is 0.7% of home value. On a $350,000 home, that is about $2,300 a year before county detail.
Tax FoundationSales tax
9.6%
Tax Foundation puts Tennessee's 2026 average combined state and local sales tax near 9.6%, ranked 2 among states in that table.
Tax FoundationVehicle costs
Registration line
Vehicle costs still belong in the budget, but the vehicle-tax source used here does not flag Tennessee as a state where value-based vehicle property tax is the main planning issue.
FreeTaxUSA vehicle-tax guideTennessee tax note
Tennessee has no broad personal income tax after the Hall income tax repeal for tax periods beginning January 1, 2021, or later. Sales tax, property costs, and local housing still stay in the plan.
Long-term care in Tennessee
The care cliff, in Tennessee dollars.
CareScout and Genworth 2025 median costs, compared with the national median. Long-term care is a separate planning layer from ordinary Medicare costs.
Assisted living
$5,845/mo
About $70,140 a year, 6% lower than the national median.
Nursing home (semi-private)
$9,429/mo
About $113,150 a year, about the same as the national median.
Home caregiver
$5,911/mo
About $70,928 a year, 11% lower than the national median.
Things to do in Tennessee
What daily life can look like.
Great Smoky Mountains National Park
The Great Smokies are the most-visited national park in the country, with mountain views, waterfalls, and trails ranging from short and flat to steep. Scenic drives and overlooks let you enjoy the park without a long hike.
National Park ServiceLakes and water recreation
Tennessee has many reservoirs and lakes with fishing, boating, and lakeside towns popular with retirees. State parks along the water add easy trails and picnic areas.
AARPMusic and city life in Nashville and Memphis
Nashville and Memphis offer live music, museums, and a deep food scene, with smaller cities like Knoxville and Chattanooga adding their own draw. Many venues and events are easy to reach for a day or evening out.
AARPWhat to know about Tennessee
The trade-offs worth weighing.
No state income tax
Tennessee has no state income tax, so Social Security, pensions, and retirement withdrawals are not taxed by the state. Sales tax is relatively high, which offsets part of the income tax savings.
AARPTornadoes and severe storms
Tennessee sees tornadoes and severe thunderstorms, with a busy season in spring and a second uptick in late fall. A safe room or basement plan and a weather radio are worth having.
AARPA property tax freeze for some seniors
Tennessee offers a property tax freeze program for homeowners 65 and older who meet local income limits, which can hold the tax on a home steady. Not every county takes part, and you have to apply and qualify.
Tennessee Comptroller of the TreasuryRetirement towns in Tennessee
Towns we have mapped in Tennessee.
Weighing two states?
Put Tennessee next to another state.
Compare cost of living, taxes, Social Security treatment, property and sales tax, and long-term-care costs side by side.
Common questions
Retiring in Tennessee, answered.
Does Tennessee tax retirement income?
Tennessee does not tax Social Security benefits under the current state-tax summary used here. AARP lists Tennessee among states that do not tax IRA and 401(k) distributions in the summary used here. Tennessee has no broad state income tax, but property tax, insurance, sales tax, vehicle costs, and local prices still belong in the plan.
AARP: how states tax retirement incomeIs Tennessee cheaper or more expensive than average?
BEA regional price parities put Tennessee about 8.1% below the U.S. average cost level. That price level is the first reason a national retirement number needs a Tennessee translation.
BEA Regional Price ParitiesWhat does long-term care cost in Tennessee?
In the CareScout and Genworth 2025 medians, Tennessee assisted living runs about $70,140 a year (6% lower than the national median) and a semi-private nursing-home room about $113,150 a year (about the same as the national median).
CareScout / Genworth Cost of CareWhich towns in Tennessee have a retirement guide?
Tennessee has 4 researched town guides: Chattanooga, Knoxville, Memphis, Nashville. Each one breaks down local costs, services, and things to do.
Does Tennessee tax retirement income?
Tennessee has no state income tax, so it does not tax Social Security, pensions, or retirement account withdrawals. The state leans on a relatively high sales tax instead.
AARPSources
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Enter your real spending, income, home, and dreams. The planner applies the Tennessee tax and cost assumptions for you, then shows the years the money has to last.
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