No State Income Tax

no state income tax in Tennessee

Most people that are close to retirement look forward to more time to relax. Tennessee has long been a state that has been favorable to retirees’ desires.

At the top of those desires are generally financial security, time flexibility and relaxation. Everything seems to take more money these days but cost of living in Tennessee is 12% below the national average. Average living cost is even lower when it comes to healthcare, which is one of the biggest of financial concerns for older Americans.

Tennessee’s tax laws are getting more favorable every year. The state does not tax individual wage income earned by its residents. The gift tax was repealed January 2012. The estate tax was repealed January 2016. Now, the only tax left is the Hall tax and it will be repealed January 2022. Thereby, making the state more friendly to business and helping retirees to feel more financially secure.

Kiplinger rated Tennessee as the fifth best state to retire in 2018. This was based on financial factors including cost of living, tax burden and affordability of healthcare. They also considered the economic health of the state and the physical health of the population over 65. Flexibility to do what you want in retirement is often associated with having income left over to cover activities and to travel and enjoy new experiences.

Relaxation is a very individual element but Knoxville certainly has a multitude of relaxing activities surrounding it on all sides. Golf, hiking, biking, fishing, boating, skiing and swimming are just a few of the outdoor activities that everyone enjoys in East Tennessee. Various gyms and yoga and wellness studios help to keep everyone healthy. Of course, if art, theater, music and food are what bring you the most relaxation, you will enjoy the lively entertainment that Knoxville is known to encourage in every area of the city. To really decompress, a lot of folks make a visit to the Great Smoky Mountains a part of their routine. Sitting among those tall tree always seems to make breathing a lot easier.


Contributed by Maxine Perry

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