The Pros and Cons of Retiring to Tennessee

Tennessee is an underrated gem in the United States, with more to offer its tourists and residents than appears on the surface. It straddles the line between the South and the Midwest – making it a unique place where cultures mingle. The state is often regarded as country music’s epicenter, a barbecue hotspot, and an outdoor attraction.

Folks from all over the United States are migrating to Tennessee in high numbers for a good reason. They’ve discovered Tennessee has a mild climate, lower cost of housing, good healthcare facilities, and a beautiful country.

If you’re considering retiring to Tennessee, you’re not alone. Increasingly, retirees are moving to Tennessee to live out their golden years. Before deciding if Tennessee is the right state for you to retire, you should know a few things. Let’s break down the pros and cons of retiring to Tennessee.

Pros of Retiring in Tennessee

Low property taxes

One big draw to retiring in Tennessee is the very low property taxes. According to data from 2022, Tennessee has an average effective property tax rate of 0.71%. WalletHub ranked the state as number 15 for lowest property taxes, with residents paying an average of $1,548 annually. Special programs for residents 65 and older make it possible to lock in those lower tax rates for the long term.

Inexpensive real estate

The median home value in July 2022 was $297,943, which was lower than the national average of $354,649 close to the same time. Home values are affordable in Tennessee, but homes are also more affordable compared to income. Of course, home prices vary widely across the state. Certain metros, like Nashville and its suburbs, have seen dramatic pricing growth. Nonetheless, retirees can still find many excellent housing deals compared to other states.

No income tax

Tennessee is one of only seven states in the country that does not have a state income tax. This can be a big selling point for retirees, who often live on a fixed income.

Here, there is no capital gains tax levied on retirement income. So, if you receive a pension from another state or are living off your 401k income, moving here can help keep more money in your pocket.

Overall cost of living

The cost of living in Tennessee is quite reasonable compared to other states. MERIC data from the third quarter of 2021 shows that Tennessee is one of the most affordable states, coming in at no. 6. According to 2020 data from the Bureau of Economic Analysis, Tennesseans spend an average of $37,499 per year on personal consumption, which includes health care, housing, and utilities. Their data said the average annual per capita cost for housing and utilities was $7,056. The median monthly mortgage was $1,244, and the one-bedroom rent was $780. Health care cost $6,295 on a per capita basis.

Some of the more expensive areas were Nashville, Sevierville, and Knoxville. Union City, Martin, and Dyersburg were on the most affordable end of the spectrum.

Beautiful scenery

Tennessee is home to several National Parks, including the Great Smoky Mountains National Park, the most visited park in the United States. Explore over 50 state parks, many of which offer hiking, fishing, and camping opportunities. With such scenic beauty, it’s no wonder retirees are flocking to Tennessee.

In particular, the mountains’ fall display of foliage rivals New England any day. If you want to see some truly majestic trees, head to the Tennessee national forests. These woods are packed so densely that they offer incredible fall color views from high points.

Western Tennessee is no slouch when it comes to scenery. The landscape has rolling hills and open farmland. The state’s miles of riverfront and lakeshores make living a waterfront lifestyle affordable.

Arts and culture

Tennessee offers plenty of options for those who enjoy arts and culture. There’s no end to the music, from tiny towns to the state’s major cultural attractions. In Nashville, find world-renowned country music venues, such as the Grand Ole Opry and the Country Music Hall of Fame. The city is also home to the Nashville Symphony and the Tennessee Performing Arts Center.

Memphis is another city with a thriving arts scene. The city is most well-known for being the home of Elvis Presley and Graceland. Rhythm and blues venues are around the town.

Tennessee is one of the country’s most active music festivals and seasonal fair locations. Visitors come to Tennessee for massive music festivals like Bonnaroo Music & Arts Festival and the Country Music Festival. Nashville hosts numerous fairs, block parties, weekly parades, and world-class country music performances.

If you’re looking for a more low-key scene, retirees can enjoy art galleries, museums, and historic sites around the state.

Outdoor recreation

As we mentioned before, Tennessee is your oyster for outdoor recreation. The Appalachian Trail and Great Smoky Mountains National Park are just the start of your options.

In addition to hiking and camping, many retirees enjoy golfing. Tennessee has some of the best golf courses in the country. For those who prefer to cast a lure, numerous lakes and rivers await the rod and reel, serving various species of trout, bass, catfish, and walleye. Retirees can also enjoy bird watching, as over 400 species of birds are in the state.

The central area is known for its abundant caves. This is because Tennessee and its surrounding states have a unique geological combination of standing water and porous rock, which creates stunning underground landscapes.

Dining scene

Tennessee offers various dining options, from southern comfort food to fine dining.

Once you’ve had Memphis barbecue, you’ll be hooked for life! This Tennessee BBQ Mecca uses a dry rub preparation to give the meat a tangy, hot, and slightly sweet flavor that is unique in the US. You’ll find some of the best hot chicken in the country in Nashville, while Chattanooga has a growing craft beer scene. In between are farm-to-table options delivering seasonal fare. No matter what your taste, you’ll find something to your liking in Tennessee.

Tennessee whiskey is yet another example of a state achieving legendary status. The title of the planet’s best whisky is contested by Tennessee whiskey and Irish spirits. Famous distilleries include Jack Daniels and Old Smoky; the Tennessee Whiskey Trail stops at 25 distilleries across the state.

Cons to retiring in Tennessee

Healthcare access is inconsistent

One of the biggest drawbacks to retiring in Tennessee is healthcare access. While some excellent hospitals and clinics are in the state, healthcare quality can be inconsistent. This is especially true in rural areas, where access to care is limited. If you’re a retiree concerned about chronic health conditions that require regular care, be selective about where you live in Tennessee.

High sales tax

Tennessee has a higher-than-average sales tax, which can add up for retirees on a fixed income. The state sales tax is 7%, and local taxes can range up to 2.75% for a total sales tax of 9.75%.

Sales tax is assessed on the retail sale of tangible personal property and certain services such as lodging, telecommunications, and installation and repair of tangible personal property. The sales tax applies to specified digital items, computer software, games, amusements, and warranty contracts concerning tangible personal property and computer software maintenance contracts.

But, in good news for retirees, prescription drugs are exempt from sales taxes.

Hot summers and severe weather

While a four-season state, Tennessee summers can be hot and humid, with temperatures often reaching over 90F. The mountains offer a more temperate climate, but Middle and West Tennessee can have weeks above 90F and near 100% humidity. On the flip side, winters are mild and moderate, rarely dipping below 40F for an extended time.

Another downside to retiring in Tennessee is the severe weather. The state may not be located in Tornado Alley, but tornadoes are common. Severe thunderstorms from colliding fronts bring damaging straight-line winds. In short, be prepared for strong weather systems.

High crime rate

Tennessee has a higher-than-average crime rate, which can concern retirees. According to Neighborhood Scout, the state’s violent crime rate is 3.4 per 1,000 residents, and the property crime rate is 16.1 per 1,000 residents.

However, it’s important to note these high crime rates and the state’s reputation for low safety are concentrated in specific areas, such as parts of Memphis and Nashville. The state as a whole has relatively low crime rates.

While no place is immune from crime, some areas are safer than others. Nashville, Chattanooga, and Knoxville all have below-average crime rates compared to other US cities.

Public transportation

Retirees in Tennessee may find themselves with a long commute. If you move to one of Tennessee’s major cities, you may not need a vehicle. Otherwise, it’s hard to explore Tennessee without a car. Transportation is adequate but overall unreliable. You’ll generally require a vehicle to journey throughout the state. Driving in Tennessee is easy if you include insurance, gasoline, and repairs in your budget.

Retiring in Tennessee

Is Tennessee the right state for you to retire? It depends on what you’re looking for in a retirement destination. If you’re looking for low taxes, beautiful scenery, and a laid-back lifestyle, Tennessee might be the perfect place. Learn more about moving to Tennessee to see if it fits you. However, if you’re looking for a state with excellent healthcare and a vibrant social scene, you might want to look elsewhere.