Quick answer (as of November 2026) On taxes, yes. Tennessee doesn't tax Social Security, pensions, or IRA and 401(k) withdrawals, and prices overall ran about 8% below the national average in 2024. Plan around a combined sales tax as high as 9.75%, property tax help with tight income limits, hot summers and primary care shortages in parts of the state.
The no-income-tax headline can cost you money if it's the only number you check. Home prices, property tax and even the property tax freeze change at the county line.
I sold real estate in San Diego before I moved to Middle Tennessee, so I know what it's like to run these numbers from a distance.
Is Tennessee a good state to retire in?
Yes for retirement income, and the rest depends on the county you choose.
| What works in your favor | What to plan around |
|---|---|
| No state tax on Social Security, pensions, IRA or 401(k) withdrawals | Federal income tax still applies |
| Overall prices about 8% below the national average, 2024 | Combined sales tax as high as 9.75% |
| Median listing price of $429,450, September 2026 | County medians from $247,775 to $1,155,000 |
| Property tax relief and local freezes at age 65 | Income limits, and the freeze isn't everywhere |
| 155 Medicare Advantage plans for 2027 | 162 primary care shortage designations |
Prices are from the Bureau of Economic Analysis, listings from Realtor.com, Medicare plans from CMS and shortage areas from HRSA.
Does Tennessee tax retirement income?
No. The Tennessee Department of Revenue says Social Security, pension income, and IRA and 401(k) distributions aren't taxed.
| Income | Tennessee income tax |
|---|---|
| Social Security | None |
| Pensions | None |
| IRA and 401(k) withdrawals | None |
| Interest and dividends | None. The Hall income tax was repealed for tax years beginning January 1, 2021 |
Federal income tax is a separate bill. The IRS says Social Security can be taxable depending on your income and filing status. Tennessee's inheritance tax is repealed too, and it doesn't apply to deaths in 2016 or later. Talk to a tax professional about your own situation.
How much will you pay in sales and property tax?
Expect up to 9.75% at the register, plus a property tax bill set by your county and city. The state sales tax rate is 7%, or 4% on food, and local rates add up to 2.75%.
Tennessee taxes homes on 25% of appraised value. Here's what $100,000 of appraised value costs a year at 2026 rates in the towns I work most.
| Location | Rate per $100 assessed | Yearly tax per $100,000 appraised |
|---|---|---|
| Franklin, Franklin Special School District | $2.2433 | About $561 |
| Franklin, outside that district | $1.566 | About $392 |
| Thompson's Station | $1.403 | About $351 |
| Spring Hill, Williamson County side | $2.009 | About $502 |
| Spring Hill, Maury County side | $2.108 | About $527 |
Rates are from the Williamson County chart and my Spring Hill property tax calculator.
Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.
Does Tennessee have property tax relief for people 65 and older?
Yes. There are two programs, and both have income limits.
| Property Tax Relief | Property Tax Freeze | |
|---|---|---|
| Where it applies | Statewide | Only where the county or city adopted it |
| Age | 65 by December 31, 2026 | 65 by the end of the year you apply |
| Income limit | $38,470 of 2025 income, counting spouse and co-owners | $38,470 to $69,150 for 2026, by county |
| What you get | The state reimburses part or all of your tax, figured on up to $33,600 of market value | Your tax stays at the dollar amount you paid the year you first qualify |
| Where to apply | County trustee or city collecting official, by 35 days after the delinquency date | Same office and deadline, every year |
Property Tax Relief isn't an exemption, so you still get a bill. The $33,600 cap in the state's 2026 brochure is under 8% of the state's median listing price, so it reaches only part of the tax on a home near that price. Disabled veterans have a separate path.
The Property Tax Freeze locks the amount of tax, set in the year you first qualify. That base changes if you improve the home or sell it and buy another. Counties and cities adopt it separately, and the Comptroller lists 28 counties and 37 cities as of November 2026, so check both for the exact address.
| Home location | County freeze | City freeze | 2026 income limit |
|---|---|---|---|
| Franklin or Thompson's Station | Yes, Williamson | Not listed | $69,150 |
| Spring Hill, Williamson side | Yes, Williamson | Yes | $69,150 |
| Spring Hill, Maury side | Not listed | Yes | $47,280 |
| Columbia | Not listed | Not listed | No freeze listed |
| Nashville | Yes, Davidson | Metro government | $63,470 |
Limits are from the Comptroller's 2026 list. Before you count on a freeze, ask the trustee which parts of your bill it covers.
What does housing cost in Tennessee?
The state median listing price was $429,450 in September 2026, but county medians ran from $247,775 in Shelby County to $1,155,000 in Williamson County, more than four times that.
Census medians run lower because they include homes bought years ago: $1,189 in monthly rent and $1,566 for owners with a mortgage, 2020 to 2024.
Looking at age-restricted communities? Each one's age rule comes from its own declaration, so start with my Middle Tennessee 55-plus guide.
How is health care access in Tennessee?
Medicare choices are wide and primary care coverage varies by location, so look up the address before you buy.
CMS counts 155 Medicare Advantage plans in Tennessee for 2027, up from 132. Open enrollment for 2027 runs through December 7, 2026, at Medicare.gov.
HRSA lists 162 primary care shortage designations in Tennessee as of September 30, 2026, covering about 2.3 million people. Check any location with HPSA Find.
Original Medicare works with any doctor or hospital that takes Medicare, anywhere in the U.S. Medicare Advantage uses networks and service areas, so a move out of your plan's area opens a Special Enrollment Period. Tell your plan before you move, and it starts the month before the move and runs 2 full months after.
What is the weather like in Tennessee?
Expect hot summers, mild winters and plenty of rain. In Nashville, the National Weather Service lists a normal July high of 90.9 degrees and a normal January low of 30.1, with about 50.5 inches of precipitation and 4.7 inches of snow in a normal year.
Severe storms happen here, so ask about the roof's age and where you'd shelter, and check the FEMA flood map for the address.
How do you decide if Tennessee works for you?
Pick one county and run the whole budget on one address: price, property tax, freeze status and the drive to your doctors. Before you write an offer, I check the county, the city limits, the tax rate and the flood map for that address.
If you're out of state, I'll record a video walkthrough of the home and send it as an unlisted YouTube link, so you can rewatch it and show anyone you want. Want a main-level bedroom or no steps at the front door? Tell me and I'll build the search around it.
Here's how I work with out-of-state buyers, and my Moving to Tennessee guide covers your license and plates. To compare towns, see the best places to retire in Tennessee.
Tell me where you're moving from and when, and I'll help you narrow it down to a county and a price. DM, text or call 615-392-1186, or use the form below.
Frequently asked questions
Does Tennessee tax Social Security?
No. The Tennessee Department of Revenue says Social Security isn't taxed. Federal income tax can still apply, depending on your income and filing status.
Are there property tax breaks for people 65 and older in Tennessee?
Yes. Property Tax Relief reimburses part or all of the tax for homeowners 65 or older with 2025 income up to $38,470. Some counties and cities add a freeze, with 2026 limits up to $69,150.
Does Tennessee have an inheritance or estate tax?
Tennessee's inheritance tax is repealed and doesn't apply to deaths in 2016 or later. Federal estate tax rules are separate, so ask your tax professional.
What are the cons of retiring in Tennessee?
The main ones are a sales tax as high as 9.75%, tight income limits on property tax help, hot summers, severe storms and primary care shortages.
How much money do you need to retire in Tennessee?
There's no single number, because the county drives it. Start with Census medians of $1,189 for rent and $1,566 for owners with a mortgage, then price your county.
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