Retiring in Tennessee and Best Places for Seniors

Retirement is a life chapter filled with both freedom and new decisions and one of the most important is where to live. For many Americans, Tennessee is climbing to the top of that list. With its no-income-tax policy, low property taxes, growing retiree communities, and natural beauty, it’s no surprise that thousands of retirees are choosing the Volunteer State.

But is Tennessee truly a great place to retire? And if so, which cities or towns are best for seniors?

In this in-depth guide, we’ll explore:

• The financial realities of retiring in Tennessee

• Healthcare access and cost

• The climate and lifestyle

• The best towns and retirement communities

• And everything else you should know before making your move

Quick Snapshot: Why Retirees Are Choosing Tennessee

Financial Benefits of Retiring in Tennessee

1. No State Income Tax

Tennessee is one of the few states that does not tax any personal income including:

• Social Security benefits

• 401(k) withdrawals

• IRA distributions

• Pensions

This makes Tennessee especially attractive to retirees on a fixed income. Compared to states like California or Illinois, the savings can amount to thousands of dollars per year.

Note: Tennessee phased out its Hall Income Tax (on interest and dividends) entirely in 2021.

2. Low Property Taxes

Tennessee’s average effective property tax rate is around 0.71%, well below the U.S. average of 0.99%.

Example:

For a $250,000 home, your annual property tax would be around $1,775.

Senior Tax Relief

Many counties offer tax relief and freeze programs for:

• Seniors aged 65+

• Disabled homeowners

• Veterans

These programs vary by county, so check with local offices before purchasing a home.

3. Overall Cost of Living

Tennessee’s cost of living is approximately 11% lower than the national average, according to data from U.S. News and Zillow (2025 figures).

Healthcare Access for Retirees in Tennessee

1. Best Cities for Healthcare Access

• Nashville – home to world-class hospitals like Vanderbilt University Medical Center

• Knoxville – strong regional care and multiple senior-focused clinics

• Chattanooga – Erlanger Health System, senior services, and growing telehealth adoption

2. Medicare Advantage Plans

Tennessee has competitive Medicare Advantage plans with broad provider networks. You’ll find more plan variety in urban areas.

3. Rural Access Challenges

In rural towns, hospital access may be more limited. Many retirees in those areas travel to nearby cities for specialist visits or surgeries.

Climate & Natural Environment

Tennessee offers four distinct seasons without the severe weather extremes of northern or coastal states.

East Tennessee, especially near the Smokies, offers cooler summers and mountain breezes.

Lifestyle, Recreation & Culture

Whether you’re active, artistic, or prefer peace and quiet, Tennessee offers something for every retiree.

Outdoor & Nature Activities

• Great Smoky Mountains National Park: hiking, waterfalls, wildlife

• Tennessee River: boating, fishing, lakeside living

• Cumberland Plateau: scenic trails and peaceful getaways

Arts, Music & Culture

• Nashville’s country music roots and live music venues

• Chattanooga’s museums and art districts

• Knoxville’s community events and university town charm

Community Life

• Active 55+ groups

• Churches, clubs, and volunteering opportunities

• Farmer’s markets and festivals year-round

Best Places to Retire in Tennessee (With Highlights)

These 5 areas below are the best places to live in tennessee.

1. Franklin

• Upscale suburb of Nashville

• Historic charm and walkable downtown

• High-quality healthcare and senior services

• Median home price: ~$610,000 (premium retirement)

2. Chattanooga

• Affordable, scenic, and vibrant

• Nestled along the Tennessee River

• Strong arts and outdoors culture

• Median home price: ~$315,000

3. Maryville

• Quiet, close to the Great Smoky Mountains

• Low crime, low cost of living

• Excellent for peaceful retirement

• Median home price: ~$295,000

4. Kingsport

• East Tennessee town with strong senior infrastructure

• Low taxes and living costs

• Excellent health systems

• Median home price: ~$240,000

5. Tellico Village

• Master-planned 55+ lakefront community

• Golf, fitness, boating, and clubs

• Designed specifically for retirees

• Home prices vary from $250K to $750K+

Notable Retirement Communities in Tennessee

How Does Tennessee Compare to Other Retirement States?

FAQs About Retiring in Tennessee

Q: Is Tennessee good for retirees financially?

Yes. With no income tax, low property taxes, and affordable living costs, Tennessee allows your retirement savings to stretch further.

Q: Do retirees pay taxes on Social Security in Tennessee?

No. Social Security income is 100% tax-free in Tennessee.

Q: Is Tennessee more affordable than Florida for retirement?

In many cases, yes. While both states are tax-friendly, Tennessee generally has lower home prices and property taxes in most areas.

Q: Are there age-restricted communities in Tennessee?

Yes, especially in places like Tellico Village, Del Webb, and Fairfield Glade, which cater to active adults aged 55+.

Q: Is it safe to retire in Tennessee?

Most smaller towns and suburban areas are very safe to live in tennessee, though you should always review crime stats for specific neighborhoods.

Final Thoughts: Should You Retire in Tennessee?

If you’re looking for a retirement destination that offers financial advantages, natural beauty, and a welcoming community, Tennessee deserves serious consideration.

With its no income tax, low cost of living, and vibrant senior-friendly towns, Tennessee offers a lifestyle that’s both affordable and fulfilling. Whether you envision life near a mountain trail, on a peaceful lake, or close to cultural events in a small city, Tennessee has a place that fits your dream.