Tennessee: Where your retirement income stays yours

Low taxes, affordable living, and a culture of responsibility make East Tennessee one of the nation's most retiree-friendly regions. When you've worked hard, saved carefully, and dreamed of a well-earned retirement, the last thing you want is for state taxes to take a big bite out of it. A recent MSN Money analysis spotlighted the few states that don't tax Social Security, 401(k), IRA or pension income — and Tennessee stands proudly among them. At a time when inflation and insurance costs are squeezing budgets, Tennessee's approach offers something rare: financial peace of mind. The state repealed its last remaining income tax in 2021, and today it has no tax on wages, pensions or retirement withdrawals, and no inheritance or estate tax. That clarity makes it easier to plan ahead without fear of year-end surprises from the tax collector. OTHER STATES TAKE A BIGGER BITE Many popular retirement destinations can't say the same. California taxes most retirement income at rates that climb as high as 12.3%, while New York, New Jersey, Minnesota and Oregon also tax pensions and IRA withdrawals. Even middle-income retirees in those states can lose thousands of dollars each year to state income tax. North Carolina and South Carolina both exempt Social Security but continue to tax other forms of retirement income — at 4.25% and 6%, respectively. Florida, like Tennessee, has no state income tax, but its advantage often fades under sky-high homeowners' insurance costs that offset what residents save in taxes. Across the Southeast, the comparison keeps coming back to the same point: Tennessee's structure is the cleanest, simplest and most predictable. THE KINGSPORT ADVANTAGE Here in Kingsport, that statewide tax benefit is magnified by affordability. Housing prices and utilities are far below the national average, and property taxes are among the lowest in the country, averaging about 0.49%. While our combined sales-tax rate averages roughly 9.6%, most retirees spend less on taxable goods and more on services, housing and travel. Add in four gentle seasons, the Greenbelt, Bays Mountain, and a sense of community that still feels personal, and Kingsport offers something money can't buy: belonging. A CULTURE OF RESPONSIBILITY Tennessee's tax structure reflects its values — limited government and personal responsibility. Social programs here are lean, and residents are expected to plan ahead and lean on family, church and community when life gets tough. For many, that's a feature, not a flaw. It encourages self-reliance and the generosity that defines East Tennessee's character. THE BOTTOM LINE In states like California or New York, taxes take a chunk of retirement income before you ever get to enjoy it. In Tennessee — and especially in Kingsport — you keep more, live better, and rest easier knowing the state won't come knocking for a piece of your savings. Tennessee doesn't just reward hard work — it respects it. For retirees seeking a place where their income stretches further and their independence still matters, Kingsport may be one of America's best-kept secrets. Jeff Fleming shares his unique insights at KingsportSpirit.com. After 35 years with the city — rising from planning intern to city manager — he now works with Move to Kingsport, a Visit Kingsport program sponsored by Eastman Credit Union. Reach him at jeff.fleming.kingsport@gmail.com.