Retiring in Tennessee: key highlights and considerations

What are the best places to retire in Tennessee?

Tennessee has numerous towns and cities that offer a fulfilling lifestyle. Some of the best places to retire in Tennessee include:

1. Franklin
2. Chattanooga: 
3. Nashville
4. Knoxville
5. Oak Ridge
6. Memphis
7. Crossville
8. Kingsport
9. Paris
10. Union City
11. Maryville

Safest places to retire in Tennessee

Tennesseans see less crime each year. According to FBI data analysis on violent and property crime conducted by Safewise, the safest cities in Tennessee are listed below. 

1. Nolensville
2. Signal Mountain
3. Kingston
4. Mount Juliet
5. Oakland
6. Atoka
7. Loudon
8. Church Hill
9. Fairview
10. Spring Hill

Best places to retire in Tennessee near water

If you’re looking to retire near the water, Tennessee has many beautiful lakes to consider. 10 Tennessee cities you may want to consider include:

1. Smithville - Center Hill Lake
2. Morristown - Cherokee Lake
3. Chattanooga - Chickamauga Lake
4. Celina - Dale Hollow Lake
5. Dandridge - Douglas Lake
6. Hendersonville - Old Hickory Lake
7. Nashville - Percy Priest Lake
8. Tiptonville - Reelfoot Lake
9. Winchester - Tims Ford Lake
10. Spring City - Watts Bar Lake

Best places to retire in Tennessee on a budget

Tennessee is noted for its low cost of living. If you’re looking for the best places to retire on a budget, take a look at the following cities, which were chosen based on their lower housing costs, community, and lifestyle. 

1. Memphis 
2. Crossville
3. Maryvale
4. Chattanooga
5. Paris
6. Lawrenceburg
7. New Tazewell
8. La Follette
9. Union City
10. Erwin

Is Tennessee a good state to retire in?

Tennessee is a great state to retire in, offering benefits for your finances, health, and lifestyle. 

According to data from the U.S. Census Bureau, Tennessee had a population of approximately 7 million people, with over 18% of the population being over the age of 65. There are 406 retirement living communities with various amenities and services. 

Housing is relatively affordable. The median rent is $1,795 with more than 14,000 available rentals. The median home value is $334,133 as of September 2025. Both numbers fall under national averages. 

Tennessee is one of the most affordable states to live in, though urban cities and resort communities are more costly than other areas. 

Tennessee also offers a tax-friendly environment, cultural and social attractions, as well as world-class outdoor recreation.  

The Volunteer State certainly has appeal, but whether the pros would be enough for you in the long term is something you should consider when thinking about retiring in Tennessee.

What are the pros and cons of retiring in Tennessee?

There are both pros and cons to retiring in Tennessee.

The pros of retiring in Tennessee:

• Affordability: The Volunteer State has a lower cost of living than many other states. According to the Bureau of Economic Analysis, living in Tennessee costs an average of $42,469, or $3,539 per month. This ranks in the top ten states for affordability. 
• Taxes: There is no personal income tax in Tennessee, no estate or inheritance tax, and low property taxes, helping you keep more money in your pocket. 
• Natural beauty: Tennessee is known for its natural beauty, from the Great Smoky Mountains National Park to the Tennessee River. Retirees can enjoy living in a peaceful environment that offers plenty of opportunities for outdoor activities such as hiking, fishing, and boating.
• Culture and entertainment: Tennessee has a rich cultural heritage, with numerous music festivals, art galleries, and museums setting the stage. The state is also home to Nashville, the country music capital of the world, and Memphis, the birthplace of rock and roll.
• Healthcare: Tennessee has a high-quality healthcare system, with many highly ranked hospitals and medical centers.

The cons of retiring in Tennessee:

• Weather: Tennessee's climate varies greatly depending on the region, but many areas experience hot and humid summers and cold winters. This may not be ideal for retirees who prefer a more moderate climate.
• Natural disasters: Tennessee is prone to natural disasters such as tornadoes, floods, and earthquakes, which could be a concern for retirees living in certain areas of the state.
• Higher crime rate: Tennessee ranks as the fourth most dangerous state in the US with 628 violent crimes per 100,000 and 2,362 property crimes per 100,000. 

How much does Tennessee tax retirees?

Tennessee is one of the most tax-friendly states in the US. Retirees looking to keep more of their money may like how competitive Tennessee is when it comes to taxes. Notably, Tennessee has:

• No state income tax: Tennessee does not charge income tax, meaning income from your retirement savings and Social Security is not taxed at the state level. Public and private pensions are also not taxed.
• No estate or inheritance tax: You can also pass on your estate safe in the knowledge that the state will not impose inheritance or estate taxes on your beneficiaries.
• Low property taxes: The effective property tax rate in Tennessee is 0.48% for owner-occupied units.  

The state also has a lower cost of living than elsewhere in the US, meaning your reduced retirement income will go further.  

What age can you retire in Tennessee?

In Tennessee, there isn't a specific retirement age mandated by law. However, if you're considering retirement in Tennessee, there are some age-related benefits and considerations to keep in mind:

• Social Security Benefits: You can start receiving Social Security benefits at age 62. However, delaying benefits increases your monthly payments. Depending on your birth year, full retirement age (FRA) is between 66 and 67. Delaying benefits until after FRA results in even higher monthly payments.
• Medicare Eligibility: Medicare eligibility starts at age 65, regardless of your retirement status. If you retire before 65, you'll need alternative healthcare coverage until you become eligible for Medicare.
• Retirement Savings: Regardless of when you retire, it's crucial to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement. You can check out the average retirement savings in the US for more insights.

Get expert retirement advice

If you’re still unsure about where to retire, it’s wise to seek expert advice. An SEC-regulated advisor can help you make informed decisions about your retirement options.

Unbiased can match you with a financial advisor who can help you plan to achieve your goals. Get started here.