Side-by-side for American retirees in 2026.
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.
Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas).
| 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 |
| 0.67% | Property tax (effective) | 1.63% |
| 9.55% | Avg combined sales tax | 8.20% |
| 90.3 | Cost of living (US=100) | 92.6 |
| None | Estate / inheritance tax | None |
| Four distinct seasons. Warm humid summers, mild winters with occasional snow. East Tennessee mountains cooler year-round. | Climate | Highly varied. Hot humid summers statewide. Hill Country mild winters; Panhandle has snow; Gulf Coast similar to Florida. |
| Strong — Vanderbilt (Nashville), University of Tennessee Medical Center. Limited in rural areas. | Healthcare | Strong in major metros — MD Anderson Cancer Center (Houston), Houston Medical Center, Dallas-area systems. Rural Texas healthcare is weaker. |
| Knoxville, Chattanooga, Crossville | Top retirement cities | Fredericksburg, San Antonio, Georgetown |
Property tax freeze available for 65+ with income under ~$33K (varies by county); tax relief programs available
$100K homestead exemption (2023) + senior 65+ school tax freeze + additional $10K senior exemption
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. Texas: Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas). The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Tennessee does not tax Social Security retirement benefits.
No, Texas does not tax Social Security retirement benefits.
Tennessee's cost of living index is 90.3 (US = 100). Texas's is 92.6. Tennessee is cheaper on average.
Enter your retirement income and see the after-tax difference between Tennessee and Texas 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.