Retiring in Tennessee: Taxes, Healthcare & Cost of Living (2026)
Tennessee has no state income tax — Social Security, pensions, and all retirement income go untaxed. The state’s music cities (Nashville, Memphis), outdoor recreation (Great Smoky Mountains), and affordable living have made it one of the fastest-growing retirement destinations. Vanderbilt University Medical Center is nationally ranked, and the cost of living stays below the national average in most areas.
The combination of tax policy, healthcare infrastructure, climate, and cost of living determines how well your retirement savings will last in Tennessee. This guide covers the top cities for retirees, a full tax breakdown, healthcare access, and realistic budget estimates for 2026.
Whether you are relocating from a high-cost state or staying close to family, understanding the full picture matters. Use our state tax comparison tool to see how Tennessee stacks up against other states you are considering, and check our affordability calculator to estimate what you can buy on a retirement budget.
Top Retirement Cities in Tennessee
The following cities stand out for retirees in Tennessee based on cost of living, healthcare access, walkability, climate, and community infrastructure. The cost of living (CoL) index uses 100 as the national average — below 100 means cheaper than most of the country.
| City | CoL Index | Median Home Price | Climate |
|---|---|---|---|
| Chattanooga | 88 | $295,000 | Four seasons, mild |
| Franklin | 102 | $545,000 | Four seasons, mild |
| Crossville | 82 | $215,000 | Mountain plateau, four seasons |
| Maryville | 86 | $285,000 | Four seasons, mild |
| Cookeville | 80 | $215,000 | Four seasons, moderate |
Chattanooga
Chattanooga sits where the Tennessee River cuts through the Appalachian Mountains and has reinvented itself from a pollution-choked industrial city into an outdoor and tech hub. Erlanger Health System and CHI Memorial Hospital provide comprehensive care. The Riverwalk, Lookout Mountain, and Rock City create a spectacular setting. The Walnut Street Bridge (one of the longest pedestrian bridges in the world) connects the Northshore and Southside districts.
Walkability: Chattanooga has a walk score of 48, which means some errands can be completed on foot in certain neighborhoods. A car is helpful for most activities, but the walkable pockets around the downtown area and main commercial corridors give retirees options for staying active without driving everywhere.
Climate: Chattanooga has a four seasons, mild climate.
Winters are mild, which reduces heating costs and allows outdoor activity year-round. Retirees who want to avoid harsh winters will find Chattanooga comfortable from October through April.
With a cost of living index of 88 and a median home price of $295,000, Chattanooga is more affordable than the national average. Check our budget calculator to see how your retirement income translates in Chattanooga, or review closing costs in Tennessee if you are planning a purchase.
Franklin
Franklin, south of Nashville, has a walkable downtown that was named the top small town in Tennessee. Williamson Medical Center provides care, and Vanderbilt University Medical Center is 25 minutes north. The Factory at Franklin (arts and dining in a converted stove factory), the Carter House and Carnton Plantation (Civil War history), and the Harpeth River greenway create a layered community.
Walkability: Franklin has a walk score of 42, which means some errands can be completed on foot in certain neighborhoods. A car is helpful for most activities, but the walkable pockets around the downtown area and main commercial corridors give retirees options for staying active without driving everywhere.
Climate: Franklin has a four seasons, mild climate.
Winters are mild, which reduces heating costs and allows outdoor activity year-round. Retirees who want to avoid harsh winters will find Franklin comfortable from October through April.
With a cost of living index of 102 and a median home price of $545,000, Franklin is close to the national average in cost. Check our see what you can afford to see how your retirement income translates in Franklin, or review closing costs in Tennessee if you are planning a purchase.
Crossville
Crossville sits on the Cumberland Plateau at 1,881 feet and markets itself as the “Golf Capital of Tennessee” — the area has 10 public courses. Cumberland Medical Center provides care. Cumberland Mountain State Park, Obed Wild & Scenic River, and Fall Creek Falls (the tallest waterfall east of the Rockies) are nearby. Multiple 55+ communities (Fairfield Glade, Lake Tansi Village) offer active-adult living at below-average prices.
Walkability: Crossville has a walk score of 32, which means a car is needed for most activities. Retirees should plan for reliable transportation. Several neighborhoods have sidewalks and short drives to shopping centers and medical facilities, but daily errands generally require a vehicle.
Climate: Crossville has a mountain plateau, four seasons climate.
The four-season climate provides variety throughout the year, with warm summers and cooler winters. Retirees who enjoy seasonal changes will appreciate the shifting market and recreational opportunities each season brings.
With a cost of living index of 82 and a median home price of $215,000, Crossville is more affordable than the national average. Check our budget calculator to see how your retirement income translates in Crossville, or review closing costs in Tennessee if you are planning a purchase.
Maryville
Maryville sits at the gateway to the Great Smoky Mountains, 15 miles south of Knoxville. Blount Memorial Hospital provides care, and University of Tennessee Medical Center is 20 minutes north. The Foothills Parkway, Townsend (the “quiet side of the Smokies”), and Cades Cove are minutes away. Downtown Maryville has a walkable square with shops and restaurants.
Walkability: Maryville has a walk score of 38, which means some errands can be completed on foot in certain neighborhoods. A car is helpful for most activities, but the walkable pockets around the downtown area and main commercial corridors give retirees options for staying active without driving everywhere.
Climate: Maryville has a four seasons, mild climate.
Winters are mild, which reduces heating costs and allows outdoor activity year-round. Retirees who want to avoid harsh winters will find Maryville comfortable from October through April.
With a cost of living index of 86 and a median home price of $285,000, Maryville is more affordable than the national average. Check our affordability calculator to see how your retirement income translates in Maryville, or review closing costs in Tennessee if you are planning a purchase.
Cookeville
Cookeville sits on the Upper Cumberland Plateau and is home to Tennessee Technological University. Cookeville Regional Medical Center provides comprehensive care. Cummins Falls State Park and numerous waterfalls dot the surrounding countryside. The cost of living runs 18% below the national average, and the community is stable, centered around the university and medical center.
Walkability: Cookeville has a walk score of 36, which means some errands can be completed on foot in certain neighborhoods. A car is helpful for most activities, but the walkable pockets around the downtown area and main commercial corridors give retirees options for staying active without driving everywhere.
Climate: Cookeville has a four seasons, moderate climate.
The four-season climate provides variety throughout the year, with warm summers and cooler winters. Retirees who enjoy seasonal changes will appreciate the shifting market and recreational opportunities each season brings.
With a cost of living index of 80 and a median home price of $215,000, Cookeville is more affordable than the national average. Check our check your buying power to see how your retirement income translates in Cookeville, or review closing costs in Tennessee if you are planning a purchase.
Tax Benefits for Retirees in Tennessee
Tennessee has no state income tax, so Social Security, pensions, and all retirement income go completely untaxed at the state level. Below is a summary of how Tennessee treats the major income sources retirees rely on.
| Tax Category | Details |
|---|---|
| State Income Tax | None |
| Social Security Taxed? | No (no state income tax) |
| Pension Income Taxed? | No (no state income tax) |
| Property Tax Senior Exemption | Yes (see details below) |
Tennessee has no state income tax. Social Security, pensions, 401(k) distributions, IRA withdrawals, and all other income are completely untaxed at the state level. The former Hall Tax on interest and dividends was fully repealed in 2021. There is no estate or inheritance tax. Property taxes are low — the median effective rate is about 0.56%. The state provides a property tax relief program for seniors 65+ with household income under $31,600, reimbursing up to $120 of taxes paid. The state sales tax is 7%, with local additions bringing it to 8.5% to 9.75% — among the highest combined rates in the country. Groceries are taxed at 4%.
Tax rules change regularly, and your specific situation — filing status, total income, and income sources — determines the actual impact. Consult a tax professional who knows Tennessee tax law before making a relocation decision based on taxes alone. For a side-by-side comparison with other states, visit our tax comparison tool.
If you are buying property in Tennessee, factor in the closing costs and ongoing property tax obligations. The best mortgage lenders in Tennessee can help you find competitive rates if you need financing for your retirement home.
Healthcare Access in Tennessee
Vanderbilt University Medical Center in Nashville is nationally ranked in multiple specialties. Methodist Le Bonheur (Memphis), UT Medical Center (Knoxville), Erlanger (Chattanooga), and Ascension Saint Thomas provide strong regional coverage. HCA Healthcare is headquartered in Nashville and operates 10+ hospitals in the state. Community Health Systems and LifePoint Health also have significant Tennessee presence. Medicare Advantage penetration is about 38%, with plans from UnitedHealthcare, Humana, BlueCross BlueShield of TN, and Cigna.
When evaluating healthcare for retirement, consider proximity to a hospital with emergency services, the availability of specialists you may need (cardiology, orthopedics, oncology), and the Medicare Advantage plan options in the county where you plan to live. Medicare Advantage plans can reduce out-of-pocket costs significantly, but network restrictions mean you need to verify that your preferred doctors and hospitals are in-network.
If you have a chronic condition or anticipate needing specialized care, prioritize cities near major medical centers. The cities listed above were selected partly for their healthcare access. Telehealth services have expanded across Tennessee, which helps retirees in smaller communities access specialists without traveling to metro areas for every appointment.
Prescription drug costs also vary by plan and pharmacy. Review Medicare Part D options during open enrollment each fall, and consider whether a Medigap (Medicare Supplement) policy fits your budget and healthcare usage patterns.
Cost of Living for Retirees in Tennessee
Retirement costs in Tennessee depend on where you live, whether you own your home outright, your healthcare needs, and your lifestyle. Below are estimated annual budgets for a single retiree and a retired couple living in a mid-cost area of the state with mortgage-free housing. Renters should add $8,000 to $18,000 per year depending on location and apartment size.
| Expense Category | Single Retiree | Retired Couple |
|---|---|---|
| Housing (taxes, insurance, maintenance) | $7,840/yr | $11,180/yr |
| Food & Groceries | $5,040/yr | $7,740/yr |
| Healthcare & Insurance | $6,160/yr | $9,460/yr |
| Transportation | $3,920/yr | $6,020/yr |
| Utilities, Entertainment, Other | $5,040/yr | $8,600/yr |
| Estimated Total | $28,000/yr | $43,000/yr |
These estimates reflect a modest but comfortable lifestyle. Adding travel, dining out, hobbies, or long-term care insurance increases the total. Healthcare costs are the most unpredictable category — a single major medical event can add $5,000 to $15,000 in out-of-pocket expenses even with Medicare coverage.
Housing costs vary dramatically within Tennessee. The cities with higher CoL indexes in the table above will cost more for property taxes, insurance, and maintenance. If you are considering buying, use our mortgage payment calculator to estimate monthly payments, and check homeowner insurance costs in Tennessee to build an accurate budget.
For couples deciding between Tennessee and another state, the difference in annual costs can be $5,000 to $20,000 per year depending on tax savings, housing costs, and healthcare expenses. Run the numbers for both states before committing.
Frequently Asked Questions
Does Tennessee tax Social Security benefits?
No. Tennessee has no state income tax, so Social Security benefits are not taxed at the state level. You will still owe federal taxes on Social Security if your combined income exceeds $25,000 (single) or $32,000 (married filing jointly), but Tennessee does not add any state tax on top of that.
What is the best city to retire in Tennessee?
Chattanooga consistently ranks among the top retirement destinations in Tennessee, offering a cost of living index of 88, a median home price of $295,000, and solid community infrastructure for retirees. However, the best city for you depends on what matters most: proximity to family, healthcare access, outdoor recreation, walkability, or affordability. Retirees who prioritize affordability may prefer one of the lower-CoL options listed above, while those focused on healthcare access should look at cities near major hospital systems.
How is healthcare access for retirees in Tennessee?
Healthcare access varies by region within Tennessee. Metro areas have multiple hospital systems, specialist practices, and Medicare Advantage plan options. Smaller cities and rural areas may have a single community hospital and limited specialist availability, which means traveling to a larger city for certain procedures. Check Medicare Advantage plan availability in the specific county where you plan to live before finalizing your decision.
How much does it cost to retire in Tennessee?
A single retiree can expect to spend roughly $28,000 per year in Tennessee, while a couple should budget approximately $43,000 per year. These figures assume mortgage-free housing in a mid-cost area of the state. Costs range widely — resort towns, coastal areas, and college towns tend to run 20% to 50% higher, while rural communities and smaller cities may run 10% to 20% lower. Housing, healthcare, and taxes are the three biggest variables.
Are there property tax breaks for seniors in Tennessee?
Tennessee does offer property tax relief programs for seniors, though the specific exemptions, income thresholds, and application processes vary by county and municipality. Common programs include homestead exemptions, assessment freezes for seniors over 65, and circuit-breaker credits that cap property taxes relative to income. Contact your county assessor’s office for current programs and application deadlines. Our Tennessee real estate guide covers property taxes and homeownership costs in more detail.
Retirement in Nearby States
If you are comparing Tennessee with neighboring states, these guides cover the same topics — top cities, tax benefits, healthcare access, and cost of living:
- Retiring in Kentucky: Taxes, Healthcare & Cost of Living (2026)
- Retiring in North Carolina: Taxes, Healthcare & Cost of Living (2026)
- Retiring in Georgia: Taxes, Healthcare & Cost of Living (2026)
- Retiring in Alabama: Taxes, Healthcare & Cost of Living (2026)
For more on the Tennessee housing market, explore our Tennessee real estate guide, review homeowner insurance options in Tennessee, or use our what can I afford calculator to see what you can buy on a retirement budget. If you are planning a move, the payment calculator can help you estimate monthly payments on a new home.