The short version
- Social Security taxed?
- No
- Income tax
- No income tax
- Property tax on a $300,000 home
- ≈ $1,560 / yr ($130 / mo)
- Everyday cost index (U.S. = 100)
- 90
- January / July high
- 48°F / 90°F
- Sales tax (state + local avg)
- 9.61%
Retiring in Tennessee
No income tax, low property taxes, and low costs — a favorite for good reason. Watch out: the second-highest sales tax in America and serious tornado risk.
How Tennessee taxes your retirement income
Social Security: not taxed at all.
Pensions: No state income tax.
401(k) and IRA withdrawals: No state income tax.
The setup: No income tax.
Property tax & senior breaks
The average effective property tax rate is about 0.52% — roughly $1,560 a year ($130 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Property tax relief payments for lower-income homeowners 65+.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 10% below the U.S. average. The combined state and average local sales tax is 9.61%.
Weather
January days top out around 48°F and July days around 90°F, with roughly 208 sunny days a year. Watch out for: Tornadoes (Dixie Alley) and flooding.
Healthcare
Nashville is a healthcare hub (Vanderbilt); rural west Tennessee has gaps.