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.
Four-season retirement with proximity to DC, the Blue Ridge, and the Chesapeake Bay. Income tax applies but a meaningful age 65+ deduction softens it.
| No state income tax | Income tax | Progressive, top 5.75% |
| Exempt | Social Security | Exempt |
| All retirement income state-tax-free | Pension treatment | $12K age deduction at 65+; Social Security fully exempt |
| 0.67% | Property tax (effective) | 0.82% |
| 9.55% | Avg combined sales tax | 5.77% |
| 90.3 | Cost of living (US=100) | 101.4 |
| None | Estate / inheritance tax | None |
| Four distinct seasons. Warm humid summers, mild winters with occasional snow. East Tennessee mountains cooler year-round. | Climate | Four distinct seasons. Mild winters in the south/coast; cooler in the mountains. Warm humid summers. |
| Strong — Vanderbilt (Nashville), University of Tennessee Medical Center. Limited in rural areas. | Healthcare | Excellent — UVA Health (Charlottesville), VCU Health (Richmond), proximity to top DC-area systems. |
| Knoxville, Chattanooga, Crossville | Top retirement cities | Williamsburg, Charlottesville, Roanoke |
Property tax freeze available for 65+ with income under ~$33K (varies by county); tax relief programs available
Real estate tax relief for elderly/disabled available in most localities — income limits vary
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. Virginia: Four-season retirement with proximity to DC, the Blue Ridge, and the Chesapeake Bay. Income tax applies but a meaningful age 65+ deduction softens it. 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, Virginia does not tax Social Security retirement benefits.
Tennessee's cost of living index is 90.3 (US = 100). Virginia's is 101.4. Tennessee is cheaper on average.
Enter your retirement income and see the after-tax difference between Tennessee and Virginia 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.