Is Tennessee a Good Place to Retire? A Local's Take

If you're weighing a move to Tennessee for retirement, you've probably heard the pitch: no state income tax, low cost of living, mountains and lakes nearby. All true. But "good place to retire" means something different to everyone, and the honest answer depends on what you're optimizing for.

We work with retirees relocating to both Nashville and Knoxville regularly, and the question we hear most isn't "is Tennessee good?" — it's "is it good for me?" This post walks through what independent research shows, where Tennessee shines, where it falls short, and how Nashville and Knoxville compare.

We won't tell you Tennessee ranks #1 anywhere, because it doesn't. What we can tell you is exactly where it stands, with sources, so you can decide for yourself.

Key takeaways:

• Tennessee ranks 32nd out of 50 states overall for retirement, but 4th for affordability, according to WalletHub's 2026 ranking.

• Knoxville outperforms Nashville on affordability for retirees; Nashville offers more amenities and activities.

• Tennessee has no state income tax, and property taxes in both Davidson and Knox counties run well below the national average.

• Healthcare access and overall quality-of-life metrics are Tennessee's weakest spots in national rankings — worth researching before you commit to a specific neighborhood.

Where Tennessee Ranks Nationally

According to WalletHub's Best and Worst States to Retire report (published January 26, 2026, using data collected through December 2025), Tennessee lands at 32nd out of 50 states overall. That's a middle-of-the-pack finish, but the breakdown matters more than the headline number.

Tennessee ranks 4th in the nation for affordability — one of its strongest showings. Where it loses ground is quality of life (47th) and healthcare access (44th). Tennessee is genuinely one of the most affordable places in the country to retire, but it won't top the list for healthcare infrastructure statewide. That distinction matters, because healthcare and lifestyle quality vary a lot by city within Tennessee — which is exactly why Nashville and Knoxville deserve separate looks.

Nashville vs. Knoxville for Retirees

WalletHub's companion city-level study, Best & Worst Places to Retire (September 2025, covering 182 U.S. cities), gives a clearer picture of how the two markets differ.

Knoxville ranked 43rd overall out of 182 cities, with an affordability rank of 4th nationally — a standout score. Nashville ranked 83rd overall, with an affordability rank of 68th — reasonable, but nowhere near Knoxville's number. Nashville pulls ahead on activities and amenities, reflecting its larger population, dining scene, live music, and healthcare footprint from systems like Vanderbilt University Medical Center.

The practical read: if stretching a fixed income further is the priority, Knoxville and the surrounding Lake Tellico area have the edge. If you want a bigger city with more going on — and don't mind paying more for it — Nashville is the better fit.

Taxes: Tennessee's Strongest Card

Tennessee has no state income tax on wages, salaries, or retirement income, including distributions from 401(k)s, IRAs, and pensions. That alone is a meaningful difference for retirees drawing down retirement accounts, compared to states that tax retirement income as ordinary income.

Property taxes are also low by national standards. Tennessee's statewide average effective property tax rate is roughly 0.52% as of 2024 data (Rocket Mortgage), and county-level rates in our two markets run even further apart: Davidson County (Nashville) sits around 0.57%, while Knox County (Knoxville) is closer to 0.37%, according to a 2026 Tennessee tax guide from Nashville's MLS. Both Davidson and Knox counties also offer property tax relief and tax-freeze programs for homeowners 65 and older, which can lock in your tax bill even if your home's assessed value rises.

Featured Answer: Does Tennessee Tax Social Security or Retirement Income?

No. Tennessee has no state income tax, so Social Security benefits, pensions, 401(k) and IRA withdrawals, and other retirement income are not taxed at the state level. Tennessee does have a state sales tax plus local option sales tax, so day-to-day spending is taxed — but income from retirement is not.

Featured Answer: Is Nashville or Knoxville Better for Retirees?

It depends on your priorities. Knoxville ranks higher nationally for affordability (4th vs. 68th, per WalletHub) and offers easier access to the Smoky Mountains and Tellico Lake. Nashville offers more healthcare infrastructure, dining, and cultural activity, at a higher overall cost of living. Neither is objectively "better" — they suit different retirement lifestyles.

Retirement Communities Worth Knowing

Near Knoxville, Tellico Village in Loudon has built a reputation over nearly four decades as one of the Southeast's most established active-adult communities — 5,000 acres along Tellico Lake, three private golf courses, and homes ranging from the $400s into the $2 million-plus range for lakefront and golf-course properties.

Near Nashville, Del Webb operates several age-restricted 55+ communities within about 30 minutes of downtown, including Del Webb Lake Providence in Mount Juliet, Del Webb Southern Springs in Spring Hill, and Del Webb Barton Village in Lebanon, with homes generally priced from the $300s to $700s.

Frequently Asked Questions

What counts as a "luxury" retirement home in Nashville or Knoxville? Typically $1 million and up, with features like main-level primary suites, low-maintenance lots, and proximity to healthcare and culture — a Nashville high-rise near Vanderbilt or a lakefront estate near Knoxville.

Why work with a specialist for a retirement relocation? Moving from out of state adds layers most retirees haven't dealt with: license reciprocity, timing a sale around Medicare enrollment windows, and knowing which neighborhoods offer the walkability or healthcare access you'll want in ten years, not just today.

Do I need to visit before choosing between Nashville and Knoxville? We'd recommend it. Cost-of-living data tells you a lot, but the day-to-day feel of a neighborhood — traffic, healthcare proximity, climate, community — is something worth experiencing directly.

What should I budget for property taxes as a senior homeowner? Ask about your target county's tax freeze program for homeowners 65+. Both Davidson and Knox counties offer relief programs that cap your bill regardless of rising home values.

Practical Next Steps

1. Decide what you're optimizing for — affordability, healthcare, activities, or proximity to family — before touring homes.

2. Compare specific neighborhoods rather than whole cities; healthcare access and walkability vary block by block.

3. Look into property tax freeze eligibility in Davidson or Knox County if you're 65 or older.

4. Visit during a shoulder season (spring or fall) for an honest read on climate and traffic.

5. Work with an agent who knows both markets, so you're comparing apples to apples.

The Bottom Line

Tennessee isn't the best state to retire in nationally, and it's not trying to be. It offers a genuinely strong tax and affordability picture, paired with two very different city experiences — Knoxville's affordability and lake-and-mountain access, or Nashville's scale and amenities. The right question isn't "is Tennessee good," it's "which part of Tennessee fits the retirement you're picturing."

If you're weighing a move to Nashville or Knoxville and want a straight answer about which neighborhoods, home types, or communities fit your specific situation, Morrell Property Collective can walk you through it. Call us at (615) 593-3103.