Tennessee Retirement Guide
Overall
Tennessee is a state in America’s Southeast that attracts many active adults over 55 for its low cost of living and easy lifestyle; therefore, there are many best places to retire in Tennessee, from livable cities like Nashville to lake towns like Paris. The Great Smoky and Cumberland Mountains and many rivers including the Mississippi offer exceptional scenery and recreation opportunities. This site will acquaint you with some basic facts about what it’s like to retire in Tennessee population was 6.9 million in 2020, with a median age of 39.2. Updated Apr. 2024
Countryside near Crossville TN
Climate
The Tennessee climate is characterized as humid subtropical, influenced by the Gulf of Mexico. Summers are hot and humid while winters tend to be mild, except at higher altitudes.
Per Capita Income and Home Prices
In Tennessee the 2020 inflation-adjusted household income was $65,214, below the national median.The MERIC cost of living index places Tennessee as having the 8th lowest cost of living of any U.S. state. Real estate and the general cost of living is below average compared to the total U.S. – the Zillow Home Value Index was $311,531 in early 2024. The 4th quarter of 2024 median home price in Knoxville was $346,900, for example, just below the NAR national Index of $367,000. The median selling price in the same period for Chattanooga was $292,100 (Source: NAR). Tourism and agriculture (cotton and beef) are important in Tennessee, along with textiles.
Taxes
Tax Burden: At 7.0% its total tax burden is one of the lowest in the country.
Marginal Income Tax Rates. Tennessee has no income tax.
Sales Tax: Sales tax is 7%, with a slightly lower rate on food. Localities can also add an average 2.55% sales tax.
Property Taxes: TN has the 47th highest per capita property tax at $845. It has a property tax relief program that the elderly, disabled, veterans, and people with very low incomes can take advantage of. Property taxes are set at 25% of assessed value.
Estate and/or Inheritance Taxes. There is no inheritance tax – it was phased out as of the end of 2015.
Link to the Tennessee Department of Revenue.
Certified Retirement Communities
Tennessee does not have a certified retirement community program, but it used to have an equivalent, the Retire in Tennessee program.
Best retirement communities
Tennessee has several large cities like Memphis and Nashville, along with many small towns. Several cities and towns in Tennessee are popular as retirement communities, particularly lake towns like Paris or the golf capital of Tennessee of Crossville. Nashville is the country music capital of the world. Maryville is a small town near Knoxville that has two great colleges in it. Johnson City and Franklin are interesting towns in the northeastern and central parts of the state. Active adult communities are being built in and around towns throughout the state and there are many to choose from. Find more helpful information on more than 70 different state and country retirement guides.
Get started – Click on the Tennessee Retirement Community profiles on the right.
