The Pros and Cons of Retiring in Tennessee

Tennessee is quickly climbing the list of top retirement destinations – and it’s easy to see why. With no state tax on earned income, a relatively low cost of living and a mix of scenic mountains, lakes and small towns, the Volunteer State offers an appealing balance of financial and lifestyle benefits for retirees. From vibrant music cities like Nashville to peaceful rural communities, Tennessee caters to a variety of retirement dreams.

Of course, no place is perfect. The state’s growing popularity can mean rising home prices in some areas, and certain regions experience hot, humid summers or limited access to health care specialists. In this guide, we’ll walk you through the pros and cons of retiring in Tennessee to help you decide if it’s the right place to enjoy your next chapter.

THE PROS OF RETIRING IN TENNESSEE

Wondering if Tennessee is the right place to enjoy your retirement years? Here are some of the top reasons why retirees are making the move:

RETIREMENT-FRIENDLY TAXES

Tennessee’s tax structure is especially appealing to retirees looking to maximize their income:

• No tax on Social Security benefits: Your Social Security income stays untouched at the state level.
• No tax on earned income: Tennessee doesn’t tax wages, salaries or retirement income like pensions or 401k withdrawals.
• Low property taxes: The average effective property tax rate is well below the national average, helping you keep long-term costs manageable.

DIVERSE CLIMATE AND NATURAL BEAUTY

Tennessee offers a climate that varies by region, giving you options for your preferred pace of life:

• Mild winters in many areas: Especially in the central and western parts of the state
• Warm, sunny summers: Great for gardening, golf or days out on the lake
• Four true seasons: Enjoy colorful autumns and lush spring blooms, perfect for outdoor lovers

CHARMING TOWNS AND LIVELY CITIES

Whether you crave culture, nature or small-town charm, Tennessee has it all:

• Franklin: A historic town with walkable streets, boutiques and Southern charm
• Chattanooga: Scenic and artsy with riverfront views and mountain trails
• Knoxville: A college town with energy and easy access to the Smoky Mountains
• Nashville: For those who want a vibrant city lifestyle with world-class music and dining

STRONG HEALTH CARE NETWORK

Quality medical care is a major plus, with several respected providers across the state:

• Top-rated hospitals: Facilities like Vanderbilt University Medical Center and Methodist Le Bonheur are nationally recognized.
• Access to specialists: This perk can be found in larger metro areas, including Nashville, Memphis and Knoxville.
• Resources for seniors: From home care services to senior wellness programs, retirees have access to support services.

AFFORDABILITY AND COST OF LIVING

Tennessee continues to attract retirees with its favorable cost of living and tax advantages. Here's a breakdown of key factors contributing to its affordability:

• Lower housing costs: The median sale price for a home in Tennessee in January 2025 was $383,300, just below the national average. 
• No state income tax: Tennessee does not levy a state income tax, allowing retirees to retain more of their Social Security benefits and retirement income. ​​

THE CONS OF RETIRING IN TENNESSEE

Tennessee has a lot going for it – beautiful scenery, affordable living and tax perks, just to name a few. But no place is without its trade-offs. Here are some potential drawbacks to consider before settling down in the Volunteer State:

HOT, HUMID SUMMERS

Tennessee summers can be intense, especially in the central and western parts of the state. From June through August, temperatures often rise into the high 80s and 90s, with humidity levels that can make the air feel heavy and uncomfortable. This may not be ideal for retirees who are sensitive to heat or who prefer a more temperate climate.

REGIONAL DISPARITIES IN HEALTH CARE ACCESS

While Tennessee is home to several highly rated medical centers, access to health care can vary greatly depending on location. Urban areas offer a wide range of specialists and services, but rural communities may have fewer providers and longer wait times for care. This can be an important consideration for retirees with chronic health conditions or specific medical needs.

POTENTIAL FOR SEVERE WEATHER

Tennessee doesn’t face hurricanes or nor’easters, but it’s no stranger to severe weather. Thunderstorms, tornadoes and heavy rainfall can occur, especially in spring and early summer. While rare, tornado activity can be significant in certain parts of the state, particularly in Middle and West Tennessee. It’s wise to understand local weather risks and prepare accordingly.

GROWING POPULARITY = RISING PRICES

Tennessee’s reputation as a retirement haven has led to increased demand in certain areas. Popular towns like Franklin, Chattanooga and parts of the Smoky Mountains region have seen rising home prices and more competition in the real estate market. Retirees looking for peace and affordability may need to look beyond the trendiest spots.

IS TENNESSEE RIGHT FOR YOUR RETIREMENT?

Retiring in Tennessee can be a smart, rewarding choice – especially for those looking to stretch their savings in a scenic, low-tax state. From affordable living and beautiful landscapes to vibrant music scenes and friendly communities, Tennessee offers a lot to love.

You may find Tennessee especially appealing if you:

• Want to avoid state income taxes and benefit from lower property taxes
• Prefer mild winters and enjoy access to both outdoor adventure and city amenities
• Value Southern hospitality, cultural experiences and a slower pace of life

That said, it’s worth considering a few potential trade-offs, such as hot, humid summers and regional differences in health care access that may affect your retirement lifestyle.

PLAN A RETIREMENT THAT FITS YOUR FUTURE

At Edelman Financial Engines, we help retirees build personalized strategies designed for long-term financial security, tax efficiency and sustainable income. Whether Tennessee feels like the right fit – or you're still exploring your options – our advisors are here to help you chart the best path forward.

Ready to plan your next chapter? Connect with an advisor today and start building a retirement strategy that supports your goals, wherever you choose to call home.