Tennessee has been quietly climbing the list of top retirement destinations for years, and at this point the secret is pretty much out. The state gained over 325,000 net new residents between 2020 and 2024, and a large share of that growth came from retirees trading in high-cost, high-tax states for something more manageable. It is not hard to see why.

Tennessee has no state income tax. That means Social Security, pension distributions, IRA withdrawals, and other retirement income are completely untaxed at the state level. Property taxes are among the lowest in the country, with an average effective rate well under one percent. The overall cost of living runs about ten percent below the national average, and the median home value sits below the national average as well. For someone relocating from California, New York, Illinois, or the Northeast, the financial contrast is striking.

Beyond the numbers, Tennessee offers something harder to quantify. The state has real variety, from mountain communities and lake towns in the east to a vibrant music capital in the center to rolling farmland in the west. The climate delivers four genuine seasons without the brutal winters that push people south or the suffocating heat that makes summer miserable in the Deep South. And Southern hospitality is not just a marketing phrase here. People are genuinely friendly in a way that makes settling into a new place feel a lot easier.

If you are considering the move, here is a look at the areas that keep coming up in conversations about retirement in Tennessee.

Knoxville and the Surrounding Area

Knoxville is one of the most well-rounded retirement options in the state. It offers the convenience of a mid-sized city, with excellent medical facilities, a major airport, and a solid restaurant and arts scene, without the traffic and cost that come with Nashville. The University of Tennessee’s presence keeps the city lively and gives retirees access to sporting events, lectures, and cultural programming year-round.

The real draw for many retirees is what surrounds Knoxville rather than the city itself. Great Smoky Mountains National Park is less than an hour away. Tellico Lake, one of the top inland boating destinations in the country, sits about 30 minutes to the south and is home to three of the most established retirement communities in East Tennessee.

Tellico Village, Rarity Bay, and WindRiver are the three communities that anchor the Tellico Lake retirement market. Tellico Village is the largest, with three championship golf courses, five marinas, a wellness center, and a social calendar that keeps things moving year-round. Rarity Bay sits on a 960-acre peninsula with French Country architecture, a championship golf course, an equestrian center, and a resident-run governance structure that gives homeowners real input into how the community operates. WindRiver is the most upscale of the three, with a Bob Cupp-designed Audubon-certified golf course, a full-service marina, and newer homes built with modern design and energy-efficient features. All three offer lake access, mountain views, and a lifestyle built specifically around active adults.

For retirees who want proximity to everything Knoxville offers while living in a quieter, more scenic setting, this area delivers in a way that is hard to match anywhere else in the region.

Chattanooga

Chattanooga often gets overshadowed in Tennessee retirement conversations, which is a mistake. The city sits in the southeastern corner of the state along the Tennessee River with the Appalachian Mountains as a backdrop, and it has developed into one of the most livable mid-sized cities in the South.

The cost of living in Chattanooga runs about eleven percent below the national average. The downtown area is walkable, served by free electric shuttles, and has been revitalized into a genuinely enjoyable place to spend time. The 13-mile Riverwalk along the Tennessee River offers flat, accessible paths that are perfect for daily walking or cycling. The Tennessee Aquarium is one of the best in the country, and the Hunter Museum of American Art regularly draws visitors from across the region.

For retirees who care about weather, Chattanooga is worth noting specifically. It sits far enough south to have mild winters but high enough in elevation to avoid the intense summer heat that makes parts of Middle and West Tennessee uncomfortable. The climate here is about as moderate as you will find in the state.

Healthcare access is solid. The city has multiple strong hospital systems, and Atlanta is under two hours away for anything requiring specialized care.

Nashville and Franklin

Nashville tends to intimidate people who are thinking about retirement because of its reputation as a booming, expensive city. And to be fair, parts of it are. Property values in Davidson County have climbed significantly over the past decade. But Nashville proper is also home to Vanderbilt University Medical Center, one of the best hospitals in the Southeast, along with a healthcare infrastructure that gives retirees real peace of mind.

The more practical retirement story in this part of the state is Franklin, located about 20 miles south of Nashville. Franklin is consistently ranked among the best places to retire in Tennessee and for good reason. The historic downtown is walkable and genuinely charming, with boutique shops, restaurants, live music venues, and a preserved character that feels authentic rather than manufactured. Home prices are higher than in other parts of Tennessee, but the quality of life is strong and the proximity to Nashville means all of the city’s resources are accessible without living in the middle of them.

For retirees who want a smaller-town feel with big-city access nearby, Franklin is one of the better options not just in Tennessee but in the entire South.

Johnson City and the Tri-Cities Region

The Tri-Cities area in the far northeastern corner of the state, anchored by Johnson City, Kingsport, and Bristol, is one of the most underrated retirement destinations in Tennessee. It does not show up on as many national lists as Knoxville or Chattanooga, but people who find it tend to stay.

Johnson City has a low cost of living with housing costs that are comfortably below the national average. East Tennessee State University gives it a college-town energy and provides retirees with access to cultural events, continuing education programs, and an engaged community that keeps things interesting. The outdoor recreation in this part of the state is outstanding. The Appalachian Trail runs nearby, the Nolichucky River and Watauga Lake attract kayakers and anglers, and the surrounding mountains offer scenery that rivals anything in the region.

Healthcare is strong here too, with Johnson City Medical Center serving as a major regional facility with trauma capabilities that serve the entire northeast corner of the state.

What to Keep in Mind

Tennessee is a genuinely strong state for retirement, but a few things are worth considering before committing. Sales tax is on the higher end. Because the state does not rely on income taxes, it makes up revenue through sales taxes, which can run close to ten percent in some areas when local rates are included. Summers in Middle and West Tennessee can be hot and humid. And while the cost of living is favorable overall, popular areas like Franklin and parts of the Knoxville suburbs have seen housing prices rise meaningfully as more people have discovered the state.

That said, the fundamentals here are hard to argue with. No income tax, genuine natural beauty, a moderate climate, strong healthcare infrastructure in most major areas, and communities that were built to welcome people from somewhere else. Tennessee earned its reputation as one of the top retirement states in the country, and for most people who make the move, it lives up to it.

Last modified: March 24, 2026