12 Tennessee Towns Where Retirees Actually Want to Live (2026)
Tennessee keeps showing up on retirement lists for one big reason: there is no state income tax, so your Social Security, pension and IRA withdrawals are not taxed by the state. Add four real seasons, mountains and lakes, and a lower cost of living than most of the country, and it is easy to see why so many retirees are moving here. These are the 12 towns people ask about most — with the good, the bad, and the nearest hospital for each.
The full list
- 1.Maryville— Mountain views without mountain roads
- 2.Knoxville— Big-city amenities on a retiree budget
- 3.Tellico Village (Loudon)— Lake life and golf in a planned community
- 4.Crossville & Fairfield Glade— Golf and lower prices
- 5.Chattanooga— Active retirees who love the outdoors
- 6.Johnson City— Affordable mountain living
- 7.Jonesborough— Small-town charm
- 8.Kingsport— Lakes and low costs
- 9.Cookeville— Halfway between Nashville and Knoxville
- 10.Franklin— Retirees who want Nashville close by
- 11.Murfreesboro— City conveniences at lower prices than Nashville
- 12.Clarksville— Military retirees
💵 Tennessee taxes for retirees
- No state income tax — Social Security, pensions, 401(k) and IRA withdrawals are not taxed by Tennessee. (The old Hall tax on interest and dividends ended in 2021.)
- Sales tax is the catch: 7% state rate plus up to 2.75% local, one of the highest combined rates in the U.S. Groceries are taxed at a lower 4% state rate plus local tax.
- Property taxes are low compared with most states. Homeowners 65+ with limited income can apply for the state Property Tax Relief program, and many counties offer a Property Tax Freeze that locks your tax amount.
1. Maryville
East Tennessee — Smoky Mountain foothills
Why retirees like it: A clean, friendly small city at the edge of the Great Smoky Mountains, minutes from the Knoxville airport and Knoxville's shopping and specialists.
Watch out for: It is no longer a secret — home prices and traffic have climbed as more people move in.
Nearest hospital: Blount Memorial Hospital
2. Knoxville
East Tennessee
Why retirees like it: University of Tennessee sports and culture, a lively downtown, lakes and the Smokies within an hour, and a large medical community.
Watch out for: Spring pollen in the Tennessee Valley can be rough if you have allergies.
Nearest hospital: University of Tennessee Medical Center
3. Tellico Village (Loudon)
East Tennessee — Tellico Lake
Why retirees like it: A large community built around Tellico Lake with golf courses, marinas and clubs — a place where most of your neighbors are retirees too.
Watch out for: Expect community (POA) fees, and a drive to Knoxville for bigger hospitals and shopping.
Nearest hospital: Fort Loudoun Medical Center (Lenoir City)
4. Crossville & Fairfield Glade
Cumberland Plateau
Why retirees like it: Fairfield Glade is one of the best-known retirement communities in the South, with many golf courses and lakes. The plateau is a little cooler in summer than the valleys.
Watch out for: Specialist care often means a drive of an hour or more to Knoxville or Nashville.
Nearest hospital: Cumberland Medical Center
5. Chattanooga
Southeast Tennessee
Why retirees like it: A riverfront city with walking paths, the aquarium, mountains on every side and a strong arts scene.
Watch out for: City traffic, and hilly neighborhoods that are harder on bad knees.
Nearest hospital: Erlanger Medical Center
6. Johnson City
Northeast Tennessee — Tri-Cities
Why retirees like it: A college town (East Tennessee State University) with mild summers, mountain trails and a lower cost of living than the big metros.
Watch out for: One hospital system (Ballad Health) runs most of the region's hospitals, so you have fewer choices.
Nearest hospital: Johnson City Medical Center
7. Jonesborough
Northeast Tennessee
Why retirees like it: Tennessee's oldest town, with a walkable historic main street and the National Storytelling Festival every fall.
Watch out for: Very small — for big shopping and medical care you will drive to Johnson City.
Nearest hospital: Johnson City Medical Center (about 15 minutes)
8. Kingsport
Northeast Tennessee — Tri-Cities
Why retirees like it: A quiet, affordable city near Boone Lake and the mountains of Virginia and North Carolina.
Watch out for: Winters are colder than in Middle Tennessee, and the job market is small if you still want part-time work.
Nearest hospital: Holston Valley Medical Center
9. Cookeville
Upper Cumberland
Why retirees like it: A college town (Tennessee Tech) on I-40 with three big lakes nearby — Center Hill, Cordell Hull and Dale Hollow.
Watch out for: Growing fast, and the nearest major airport is Nashville, about 90 minutes away.
Nearest hospital: Cookeville Regional Medical Center
10. Franklin
Middle Tennessee — south of Nashville
Why retirees like it: A beautiful historic downtown, great restaurants, and Nashville's hospitals and airport within 30–40 minutes.
Watch out for: One of the most expensive housing markets in Tennessee.
Nearest hospital: Williamson Medical Center
11. Murfreesboro
Middle Tennessee
Why retirees like it: Everything you need — shopping, healthcare, a university (MTSU) — about 40 minutes from Nashville.
Watch out for: Rapid growth means more traffic and construction every year.
Nearest hospital: Ascension Saint Thomas Rutherford
12. Clarksville
Middle Tennessee — Kentucky line
Why retirees like it: Next to Fort Campbell, with a big veteran community and lower home prices than the Nashville suburbs.
Watch out for: Busy with military traffic, and summers are hot and humid.
Nearest hospital: Tennova Healthcare – Clarksville
Questions retirees ask
Does Tennessee tax Social Security?
No. Tennessee has no state income tax, so Social Security, pensions and retirement account withdrawals are not taxed by the state.
What is the cheapest place to retire in Tennessee?
Smaller towns on the Cumberland Plateau and in Northeast Tennessee — like Crossville, Kingsport and Johnson City — are usually cheaper than the Nashville area. Prices change quickly, so compare current listings before you decide.
Is East or Middle Tennessee better for retirees?
East Tennessee has the mountains, cooler towns and the Smokies. Middle Tennessee has Nashville's airport, hospitals and entertainment, but higher prices and more traffic.
This guide is general information, not financial or tax advice. Tax rules and home prices change — check with the Tennessee Department of Revenue, your county, or a licensed advisor before you move.