What are the benefits of retiring in Tennessee?
As Tennessee does not have an income tax, all forms of retirement income are untaxed at the state level. This includes Social Security and income from retirement accounts. Additionally, property taxes in Tennessee are quite low, with an average effective rate of just 0.64%.
The mild climate, lower cost of housing, good healthcare facilities, and pretty views of the great smoky mountains make Tennessee a great place in terms of quality of life. But did you know Tennessee is also one of the best states for retirees?
According to their data, Tennessee is the 23rd worst place to retire. The state received a score of 80, getting positive reviews for being tax-friendly for retirees and a low cost of living. However, the state received low marks for its high assault rate per capita and for a less than ideal climate for retirees.
Tennessee. Residents of the Volunteer State pay no taxes on Social Security benefits, pensions or distributions from their retirement plans. That's because Tennessee is one of a handful of states with no income tax. There are also no estate or inheritance taxes in Tennessee.
Top 10 reasons NOT to move to Tennessee. Don't go to Memphis.
But that's fine, since Tennessee doesn't have an income tax, which means retirees in the state don't pay tax on their 401(k), IRA or pension income. Social Security Benefits: Tennessee retirees also collect Social Security benefits without paying state tax on them.
Tennessee is an affordable state to live in with reasonable property taxes, a low cost of living and no state income taxes. With life necessities like utilities, groceries and transportation coming in at a low cost, those wanting to make the move will also find additional benefits.
If the average cost of living in the United States is 100, Florida has an overall score of 97.9. This is considerably more than Tennessee, which has an overall cost of living score of 88.7. When comparing the numbers, this means Florida is nearly 10% more expensive to live in than Tennessee.
Tennessee's expected length of retirement is relatively short, with the average person retiring at 64 years old and the average life expectancy at 76 years. To live comfortably through these 12 years of retirement, one should plan to save at least $660,870.
Background. In November 2006, Tennessee voters approved an amendment to Article II, Section 28 of the Tennessee Constitution giving the General Assembly the authority by general law to authorize counties and/or municipalities to implement a local option property tax freeze for taxpayers 65 years of age or older.
What is the nicest part of Tennessee?
- Gatlinburg.
- Memphis.
- Great Smoky Mountains National Park.
- Knoxville.
- Chattanooga.
- Pigeon Forge.
- Nashville.
- Bristol.
The Retire Tennessee program consists of rural and urban communities across the state. Each community meets the state's criteria of providing the resources and amenities needed to be a viable retirement destination. Take a look at each community and you are sure to find one that you can call home.
| Best States | Rank | Rank |
|---|---|---|
| Alaska | 1 | 46 |
| California | 2 | 47 |
| Maine | 3 | 48 |
| Massachusetts | 4 | 49 |
That means that even if you're not one of those lucky few who have $1 million or more socked away, you can still retire well, so long as you keep your monthly budget under $3,000 a month.
Tennessee is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are not taxed. Wages are taxed at normal rates, and your marginal state tax rate is 5.90%.
Tennessee is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are not taxed. Wages are taxed at normal rates, and your marginal state tax rate is 5.90%.
Tennessee is an affordable state to live in with reasonable property taxes, a low cost of living and no state income taxes. With life necessities like utilities, groceries and transportation coming in at a low cost, those wanting to make the move will also find additional benefits.
Tennessee's expected length of retirement is relatively short, with the average person retiring at 64 years old and the average life expectancy at 76 years. To live comfortably through these 12 years of retirement, one should plan to save at least $660,870.
Tennessee does not have an individual income tax. Tennessee has a 6.50 percent corporate income tax rate and levies a gross receipts tax. Tennessee has a 7.00 percent state sales tax rate, a max local sales tax rate of 2.75 percent, and an average combined state and local sales tax rate of 9.55 percent.