Retirement Cost of Living in Tennessee

The cost of living and making your money last are very important things to people in retirement or those who are approaching the time and considering their options. When living on a fixed income, the cost of food, utilities, transport, gasoline and other sundries can be a major factor in where retirees live.

In Tennessee, the state and municipal authorities make a concerted effort to attract retirees to live in the Volunteer State.

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Here are some facts about the retirement cost of living in Tennessee:

1. Taxes
Tennessee offers low taxes for retirees. The state has no personal income tax, so the Hall Income Tax, which taxes bonds and dividends, is the only tax that affects a retiree's income directly. In 2013, the state lifted the threshold for singles over 65 to $33,000 and to $59,000 for couples. These changes allow the retiree to keep taxation costs under control.

2. Healthcare
The cost of healthcare in Tennessee is below the U.S. average as a whole, with the state scoring 92 on a list of indices of which the average is 100. On average, people in Tennessee pay just under $6,500 per capita on healthcare, which is below the national rate; and inpatient hospital costs are $1,460 per day, again below the national average of $1,900. As a factor in cost of living expenses, Tennessee goes a long way in reducing health expenditures, crucial for those on fixed income retirements.

3. General Costs
In 2014, Tennessee ranked No. 2 in the list of lowest cost of living per state by the Missouri Economic Research and Information Center. This record shows the Volunteer State to be nearly 11 percent cheaper than the rest of the country when it comes to day-to-day expenses. Across the board, the state came out very well: groceries and transportation are six points below the national average, with housing nearly 25 points lower than elsewhere. Even on miscellaneous items such as clothing and entertainment, Tennessee outdid most others in keeping below the national average.

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4. Housing
The cost of housing in Tennessee is also well below that of the national average. There is no state property tax; a resident will only pay taxes determined by their local government.

For retirees looking for affordable housing for their retirement years, Tennessee is a popular decision.

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