Side-by-side for American retirees in 2026.
The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community.
No state income tax, low cost of living, and four mild seasons. The mountains, lakes, and music capital make it one of the fastest-growing retirement destinations.
| No state income tax | Income tax | No state income tax |
| Exempt | Social Security | Exempt |
| All retirement income state-tax-free | Pension treatment | All retirement income state-tax-free |
| 0.82% | Property tax (effective) | 0.67% |
| 7.00% | Avg combined sales tax | 9.55% |
| 102.8 | Cost of living (US=100) | 90.3 |
| None (no estate or inheritance tax) | Estate / inheritance tax | None |
| Hot/humid year-round, especially May–October. Mild winters statewide. Hurricane season June–November. | Climate | Four distinct seasons. Warm humid summers, mild winters with occasional snow. East Tennessee mountains cooler year-round. |
| Strong — large hospital systems statewide (Cleveland Clinic Florida, Mayo Jacksonville, AdventHealth). Above-average Medicare Advantage options. | Healthcare | Strong — Vanderbilt (Nashville), University of Tennessee Medical Center. Limited in rural areas. |
| The Villages, Sarasota, Naples | Top retirement cities | Knoxville, Chattanooga, Crossville |
$50,000 homestead exemption + 'Save Our Homes' 3% annual cap on assessment increases
Property tax freeze available for 65+ with income under ~$33K (varies by county); tax relief programs available
Florida: The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community. Tennessee: No state income tax, low cost of living, and four mild seasons. The mountains, lakes, and music capital make it one of the fastest-growing retirement destinations. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Florida does not tax Social Security retirement benefits.
No, Tennessee does not tax Social Security retirement benefits.
Florida's cost of living index is 102.8 (US = 100). Tennessee's is 90.3. Tennessee is cheaper on average.
Enter your retirement income and see the after-tax difference between Florida and Tennessee in 30 seconds.
Open tax estimator →Tax data current as of 2026 publication. Rates and rules change annually — verify with a CPA before relocating. This page is educational and not personalized tax or legal advice.