Free retirement calculator tailored for Tennessee (TN). Calculate instantly with state-specific rates and rules.
Tennessee's zero income tax is a major retirement advantage. Combined with a relatively low cost of living (Nashville excepted), warm climate, and no state inheritance tax, Tennessee has become a top-10 retirement destination. Nashville's world-class healthcare (Vanderbilt Medical Center) is another significant draw.
| Data Point | Value |
|---|---|
| Average Retirement Savings (55-64 age group) | $118,000 |
| Median Household Income | $54,833 |
| Tennessee Tax on Retirement Income | Tennessee has no broad state income tax. |
Tennessee has no broad state income tax. The state previously taxed dividends and investment income (the "Hall Tax") but it was fully eliminated effective January 1, 2021. All retirement income — Social Security, pensions, 401(k), IRA, and investment income — is completely free from Tennessee state income tax.
The average Tennessee household nearing retirement (ages 55-64) has approximately $118,000 in retirement savings. Financial planners commonly recommend having 10-12x your final salary saved by retirement age. For the median Tennessee income of $54,833, that suggests a target of roughly $548,330 to $657,996.
Use CalcuWealth's retirement calculator to model your specific situation — including your expected Social Security, any Tennessee pension, and your investment portfolio — to find your personal retirement number.
Data: US Census Bureau ACS 2023, Zillow (2024), Vanguard How America Saves (2023), NCES. Updated 2024–2025. Figures reflect state averages — consult a licensed financial advisor for personalized guidance.
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