Tennessee has become an increasingly popular retirement destination thanks to its beautiful scenery, comfortable climate, and proximity to the popular Appalachian and Blue Ridge Mountains. The cost of living is well below the national average, even when you factor in the relatively high sales tax, which gets you more adventures for the money in nearby Knoxville, Asheville, Boone, and Tri Cities. Whether you enjoy golf, skiing, hiking, museums, eating out, or shopping, you’ll be able to do more of it in Tennessee.
The financial benefits to living in Tennessee especially pays of for seniors, as the state has no income tax, meaning any part time or freelance income, Social Security benefits, IRA distributions, and pensions will go further. Starting in 2013, anyone 65 or older can also get exemptions on dividend and interest taxes if they fall within a certain tax bracket.
Property values are assessed only by city and county, not by state. Hamblen County, where Morristown is located, has one of the lowest property tax rates in the state of no more than $2.69/$100. That low property tax rate makes it easy for seniors to retain family property for estate and investment purposes even if they choose to move into a retirement community. You’ll better be able to afford to rent out your old home, for example, rather than selling it outright, or maintaining it for a spouse or relatives.
All of this is good news for seniors who want to remain flexible in their retirement planning and have a variety of options, especially if they are looking at senior living facilities that can age with them and offer multiple levels of care. A state with strong tax incentives for seniors like Tennessee can be a huge relief when it comes to planning the next phase of your life.