Retiring in Tennessee: What to Know Before You Move

If you’re considering retirement in Tennessee, you’re in good company. The Volunteer State has become a favorite for active adults thanks to its mild climate, rich culture, and approachable cost of living. With rolling hills, vibrant city life, and charming small towns, there’s no shortage of ways to enjoy your free time — and it’s easy to see why so many retirees are drawn here.

Before making the move, it’s helpful to understand what day-to-day life actually looks like. From taxes and healthcare access to standout cities for retirees, here are a few key factors to think through as you decide whether Tennessee aligns with your retirement plans.

Is Tennessee a Good Place to Retire?

For many active adults, retiring in Tennessee feels like the right move for a variety of reasons. When people ask, "Is Tennessee a good place to retire?" finances are often the first topic that comes up, and for good reason. Tennessee does not tax earned income or retirement income, meaning pensions, Social Security benefits, IRA withdrawals, and 401(k) distributions are all tax-free at the state level. This keeps daily expenses manageable and gives retirees more spending power.

Beyond the tax benefits, Tennessee blends vibrant city amenities with relaxed suburban and small-town living. Nashville anchors Middle Tennessee with world-class entertainment, outstanding healthcare, and new active-adult communities such as Dream Finders Homes' Reverie at Music City and Reverie at Parkhaven in Hermitage. These communities offer modern homes, convenient amenities, and easy access to everything retirees enjoy.

Cost of Living: What to Expect

One of the biggest perks of retiring in Tennessee is the approachable cost of living. Although prices vary by region, the state overall tends to sit below the national average for groceries, utilities, and transportation. Housing costs have risen in recent years, especially around Nashville, but many retirees still find that their dollars stretch further here than in other popular retirement destinations.

Choosing the right location matters. Metro areas offer abundant dining, entertainment, and medical access, while surrounding suburbs and smaller towns provide more affordable home prices without losing convenience. Dream Finders Homes builds throughout these high-demand regions, giving retirees options ranging from traditional floor plans to single-level active-adult homes designed for comfort and low-maintenance living.

Understanding Tennessee Taxes for Retirees

Taxes play a major role when weighing retiring in Tennessee pros and cons. Here is what stands out:

• No income tax on wages or retirement income

• Generally reasonable property taxes compared to neighboring states

• Higher than average sales tax that helps offset the lack of income tax

For many retirees, this tax structure is a meaningful advantage. The overall savings can help support travel, hobbies, or investing in a new home that suits your next chapter.

Healthcare Access Across the State

Healthcare quality is especially important for retirees, and Tennessee delivers strong options across major metro areas. Nashville is home to nationally recognized medical systems, including Vanderbilt University Medical Center. Knoxville and Chattanooga also provide robust healthcare networks and access to specialists.

Suburban areas around Nashville, including Hermitage, offer the benefit of quieter living with proximity to top medical centers. Active-adult communities like Reverie at Parkhaven and Reverie at Music City allow retirees to enjoy modern amenities while staying just minutes from trusted healthcare providers.

Smaller towns offer dependable regional healthcare as well, though retirees who need specialized services may prefer living closer to a metropolitan area.

Retiring in Tennessee Pros and Cons

To determine whether Tennessee is the right fit, it helps to look at the tradeoffs that come with living here.

Pros

• No tax on retirement income

• Mild seasons with short winters

• Strong healthcare systems in metro areas

• Affordable suburban and small-town living

• Wide range of outdoor recreation and cultural attractions

• Growing number of active-adult communities designed for easy, low-maintenance living

Cons

• Popular metro areas can attract more visitors during peak events and tourism seasons

• Some regions are growing quickly, which can mean more competition for homes in high-demand neighborhoods

• Weather patterns vary across the state, so retirees may want to choose an area that matches their climate preferences

• Availability of certain specialty amenities or activities may differ between rural and metropolitan areas

For most retirees, the advantages outweigh the drawbacks, especially when choosing a community that supports the lifestyle they want.

Is Retiring in Tennessee Right for You?

Retiring in Tennessee offers an appealing blend of culture, nature, and affordability, with options for every lifestyle including urban walkability, lakeside living, and peaceful small towns. For those looking for modern active-adult living, Reverie Active Adult by Dream Finders Homes provides thoughtfully designed communities throughout the Nashville region, including upcoming communities like Reverie at Music City and Reverie at Parkhaven.

With smart floor plans, low-maintenance designs, and prime locations, these communities make it easy to start your next chapter with confidence and comfort.