The #1 reason for moving to Tennessee its no state income tax. That means you keep more of every paycheck while enjoying a lower cost of living than many neighboring states.
Tennessee is one of the nation’s most business-friendly states, ranking #3 for business friendliness. From the booming music scene in Nashville to the Great Smoky Mountains, the Volunteer State offers an ideal mix of career opportunities and quality of life.
If the tax savings, growing economy, and scenic landscapes haven’t convinced you, we’ve got 6 compelling reasons why Tennessee should be your next home.
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AT A GLANCE:
- Tennessee attracts new residents with no state income tax, affordable housing, and a lower cost of living than many neighboring states.
- The state has a strong economy, ranking #3 for business climate, with major employers like FedEx, Nissan, Amazon, and HCA Healthcare.
- Tennessee’s median home price is around $386K, offering more affordable options in cities like Knoxville, Chattanooga, and smaller communities.
- From Nashville’s music scene to the Great Smoky Mountains, Tennessee offers a mix of entertainment, outdoor recreation, and Southern charm.
- While Tennessee offers many benefits, buyers should consider challenges like high sales taxes, severe weather, and limited public transportation.
Top 6 Reasons Why You Should Move to Tennessee
The Volunteer State combines low taxes, affordable living, and a growing economy with world-famous music and scenic mountains. Whether you’re looking for career opportunities, outdoor adventures, or a lower cost of living, Tennessee offers something for everyone.
1. No State Income Tax
Tennessee is one of the few states that does not levy a state income tax. That means you keep more of every paycheck, making it especially attractive for professionals, retirees, and remote workers.
The state also has relatively low property taxes compared to the national average, helping homeowners save even more over time. While local sales taxes are among the highest in the country, many residents find the tax savings on income outweigh the higher cost of everyday purchases.
- State Income Tax: None
- Property Tax: Among the lowest effective property tax rates in the U.S.
- Sales Tax: State rate of 7%, with local taxes bringing the combined rate up to 9.75% in some areas.
Pro Tip! Tennessee’s no-income-tax policy can save thousands every year. Pair those savings with affordable housing in cities like Knoxville, and your money goes even further.
2. Growing Job Market
Tennessee has one of the strongest economies in the Southeast, supported by global employers like FedEx, Nissan, AutoZone, and Amazon. The state continues to create jobs across healthcare, manufacturing, logistics, technology, and professional services.
| Job Sector | Tennessee Jobs | Share of Jobs |
|---|---|---|
| Trade, transportation, & utilities | 684 | 27.6% |
| Professional & business services | 451 | 18.2% |
| Education & health services | 515 | 20.8% |
| Leisure & hospitality | 373 | 15.1% |
| Government | 455 | 18.4% |
Healthcare and manufacturing remain two of Tennessee’s largest employment sectors, while logistics, professional services, and technology continue to expand. Combined, these industries provide diverse career opportunities across both major cities and growing suburban markets.
3. Affordable Housing
Tennessee remains one of the more affordable states for homebuyers, with home prices below the national median in many cities. Whether you’re searching for your first home, a larger family property, or an investment opportunity, you’ll find options across a wide range of budgets.
- Affordable markets: Kingsport, Johnson City, LaFollette
- Mid-range growth markets: Knoxville, Chattanooga, Clarksville
- Premium markets: Nashville, Franklin, Brentwood
4. Music, Mountains & Outdoor Recreation
Few states offer the lifestyle Tennessee does. From Nashville’s live music venues and Memphis’ blues scene to the Great Smoky Mountains National Park, there’s no shortage of entertainment or outdoor adventure.
Popular attractions include:
- Great Smoky Mountains National Park
- Dollywood
- Lookout Mountain
- Natchez Trace Parkway
- Great River Road
- Norris Lake
Whether you enjoy hiking, fishing, camping, kayaking, or live concerts, Tennessee offers year-round activities for every lifestyle.
5. Mild Climate
Tennessee enjoys a humid subtropical climate with four distinct seasons. Summers are warm and humid, while winters are generally mild, especially in the central and western parts of the state.
Average temperatures range from the low 30s°F during winter to the upper 80s and low 90s°F during summer, with cooler conditions in higher elevations of eastern Tennessee.
6. Strong Economy & Investment Opportunities
Tennessee continues to attract new residents and businesses thanks to its business-friendly environment, affordable housing, and steady population growth. Major metros like Nashville and Chattanooga continue to see strong housing demand and long-term appreciation.
- Affordable entry: Kingsport, Jackson, Cleveland
- Mid-range growth: Knoxville, Chattanooga, Murfreesboro
- Premium markets: Nashville, Franklin, Brentwood
Whether you’re looking for a primary residence, rental property, or long-term investment, Tennessee offers housing opportunities for nearly every budget.
Which Is the Best Place to Move to in Tennessee?
From Nashville’s music and tech scene to Chattanooga’s outdoor lifestyle, Tennessee offers something for every lifestyle. Nashville draws professionals with strong job growth, while smaller cities offer affordable housing, good schools, and a lower cost of living.
We’ve rounded up some of the best places to live in Tennessee, balancing affordability and career opportunities for professionals with top-rated schools, healthcare, and recreation for families and retirees.
| City | Median Home Price | Median Rent | Best For |
|---|---|---|---|
| Franklin | $981,350 | $2,300 | Families |
| Nashville | $572,000 | $1,900 | Professionals |
| Crossville | $286,000 | $1,300 | Retirees |
Here are some more great options to consider:
1. Families 👨🏼👩🏼👧🏼👦🏼
- Franklin: One of Tennessee’s top-rated family destinations, Franklin offers highly ranked Williamson County schools, safe neighborhoods, and a charming historic downtown. Homes for sale in Franklin range from modern subdivisions to luxury estates, with easy access to Nashville’s job market.
- Collierville: Located near Memphis, Collierville is known for excellent public schools, beautiful parks, and a strong sense of community. Homes for sale in Collierville include spacious single-family homes in quiet neighborhoods, making it a favorite among growing families.
2. Young Adults 🧑💻
- Nashville: Tennessee’s capital is one of the nation’s fastest-growing job markets, with opportunities in healthcare, finance, technology, music, and entertainment. Homes for sale in Nashville range from downtown condos to suburban communities, while residents enjoy live music, professional sports, and a vibrant nightlife.
- Chattanooga: Nicknamed the “Scenic City,” Chattanooga combines affordable living with a growing technology sector and one of the fastest municipal internet networks in the country. Homes for sale in Chattanooga remain relatively affordable, and hiking trails, climbing areas, and the Tennessee River surround the city.
3. Retirees 👵🧓
- Crossville: Often called the “Golf Capital of Tennessee,” Crossville is popular with retirees thanks to its mild climate, affordable cost of living, and numerous golf courses and lakes. Homes for sale in Crossville range from low-maintenance communities to scenic properties near Cumberland Mountain State Park.
- Johnson City: Nestled in the Appalachian Highlands, Johnson City offers affordable housing, quality healthcare through Ballad Health, and easy access to outdoor recreation. Homes for sale in Johnson City appeal to retirees seeking a slower pace of life without sacrificing modern conveniences.
Things to Do in Tennessee
Tennessee blends mountain scenery, legendary music, rich history, and Southern hospitality. From the Great Smoky Mountains to Nashville’s live music and Memphis barbecue, the Volunteer State offers something for everyone year-round.
Here’s the ultimate Tennessee bucket list you must check off:
Explore the Great Outdoors 🏞️
- The Smokies: Hike scenic trails through the Great Smoky Mountains National Park, America’s most-visited national park, and enjoy waterfalls, wildlife, and panoramic mountain views.
- Underground Adventure: Tour Ruby Falls in Chattanooga, home to the tallest underground waterfall open to the public in the United States.
- River Escape: Paddle, fish, or relax along the Tennessee River or spend the day exploring Norris Lake and Center Hill Lake.
Experience Tennessee’s Music Heritage 🎸
- Music City: Visit Nashville’s Broadway, tour the Country Music Hall of Fame, and catch live performances at the Grand Ole Opry.
- Birthplace of Rock ‘n’ Roll: Walk down Beale Street in Memphis, visit Sun Studio, and tour Graceland, Elvis Presley’s iconic home.
- Bluegrass & Beyond: Discover local music festivals and intimate venues throughout Knoxville, Bristol, and Johnson City.
Taste Tennessee’s Southern Flavor 🍽️
- Memphis Barbecue: Try slow-smoked ribs or pulled pork at one of Memphis’ legendary barbecue restaurants.
- Hot Chicken: Experience Nashville hot chicken, Tennessee’s signature spicy dish, served everywhere from local diners to award-winning restaurants.
Scenic Drive: Cruise the Cherohala Skyway or the Foothills Parkway for some of the most breathtaking mountain views in the Southeast, especially during the fall foliage season.
Is It Expensive to Live in Tennessee?
No, Tennessee is one of the more affordable states to live in. The cost of living is about 6% below the national average, with a median home price of around $336,445. Lower healthcare and transportation costs make it an attractive option for families and retirees.
On average, an individual may spend $300 to $450 per month on groceries. Everyday essentials like milk, bread, and eggs are generally priced close to the national average.
Additionally, Tennessee has no state income tax, allowing residents to keep more of their earnings and making the state even more affordable for working professionals and retirees.
| Expense Category | US Average (Monthly) | Tennessee Average (Monthly) |
|---|---|---|
| Utilities (electricity, water, gas, internet) | $150–$250 | $170–$300 |
| Groceries (per person) | $300–$500 | $300–$450 |
| Transportation (fuel + public transit) | $120–$500 | $120–$420 |
Pros and Cons of Living in Tennessee
Living in Tennessee offers a mix of career opportunities and outdoor recreation. Understanding the pros and cons can help you decide if the state’s affordability and tax advantages outweigh challenges like severe weather and limited public transportation.
Pros ✅
- No State Income Tax: Tennessee does not tax earned income, allowing residents to keep more of every paycheck. Combined with a relatively low cost of living, it’s an attractive state for professionals, families, and retirees.
- Affordable Housing: Home prices remain below the national average in many parts of the state. Whether you’re buying in Knoxville, Chattanooga, or a smaller town, you’ll generally get more home for your money than in many neighboring states.
- Strong Job Market: Tennessee has a diverse economy supported by healthcare, manufacturing, logistics, automotive, and corporate headquarters like FedEx, Nissan, AutoZone, and HCA Healthcare.
- Outdoor Lifestyle: From the Great Smoky Mountains to hundreds of lakes, rivers, and state parks, Tennessee offers year-round opportunities for hiking, boating, fishing, camping, and other outdoor activities.
Cons ❌
- High Sales Tax: While there’s no state income tax, Tennessee has one of the highest combined state and local sales tax rates in the country, making everyday purchases more expensive.
- Severe Weather: Parts of the state experience tornadoes, severe thunderstorms, flash flooding, and occasional winter storms, particularly during spring.
- Limited Public Transportation: Outside cities like Nashville and Memphis, public transit options are limited, making a personal vehicle essential for most residents.
- Hot, Humid Summers: Summers are often warm and humid, with temperatures frequently reaching the upper 80s and 90s, especially across Middle and West Tennessee.
How to Move to Tennessee?
Follow this step-by-step guide before relocating to Tennessee to make your transition hassle-free:
Step 1. Find Your Perfect House
Tennessee’s housing market offers everything from vibrant city living to affordable small-town communities.
- The Metro Lifestyle: In cities like Nashville, Franklin, and Chattanooga, you’ll find strong job markets, thriving entertainment districts, and growing neighborhoods. If you’re buying a house in Tennessee, Nashville’s median home price is around $572K, while Franklin offers upscale suburban living with homes averaging over $981K.
- The Affordable Advantage: For more value, consider cities like Johnson City, Kingsport, or Crossville. These markets offer lower home prices, shorter commutes, and family-friendly communities without sacrificing amenities.
Step 2. Plan Your Logistics
Once you’ve chosen your new home, it’s time to organize your move. Professional movers in Tennessee typically charge around $124 per hour, although the total cost depends on the distance, timing, and size of your move.
If you’re planning a DIY move, renting a mid-size moving truck generally costs between $40 and $80 per day, depending on mileage and insurance.
Step 3. Set Up Your Utilities
- Electricity: Service depends on where you live. Major providers include Tennessee Valley Authority (TVA) through local utilities, Nashville Electric Service (NES), Memphis Light, Gas, and Water (MLGW), and EPB in Chattanooga.
- Water: Water and sewer services are managed by local municipalities. Contact your city or county utility department before moving to schedule service activation.
- Internet: Popular providers include Xfinity, AT&T Fiber, Spectrum, and EPB Fiber (Chattanooga). Many larger cities offer fiber internet, but availability varies by location.
Step 4. Enroll Your Kids in School
Most Tennessee school districts allow online enrollment before your move. Here’s what you’ll typically need:
- For Kindergarten to First Grade: Children must meet the district’s age requirements. Families generally need a birth certificate, immunization records, proof of residency, and a parent or guardian’s photo ID.
- For Older Students: Middle and high school students may also need transcripts, report cards, and records from their previous school.
- Transfer and Special Cases: Students transferring from another state or those with IEPs or special education services should contact the school district early to ensure a smooth enrollment process.
Step 5. Transfer Your Job or Find a New One
If you work remotely, notify your employer before moving so your payroll, tax withholding, and employment records can be updated. Tennessee’s lack of a state income tax can simplify payroll for many employees.
If you’re searching for a new opportunity, Tennessee’s growing economy offers careers across healthcare, manufacturing, logistics, technology, finance, and entertainment. Nashville, Chattanooga, Knoxville, and Memphis remain some of the state’s strongest employment hubs.
Things to Know Before Moving to Tennessee ✅
Moving to Tennessee means enjoying no state income tax, a growing economy, and a lower cost of living than many neighboring states. Before relocating, however, it’s important to understand the state’s vehicle requirements, firearm laws, weather risks, and other regulations that may affect your daily life.
- Firearm Laws: Tennessee allows both open and concealed carry for most adults aged 18 and older without a permit. However, firearms are prohibited in certain locations, including schools, courthouses, and many government buildings.
- Driver’s License and Vehicle Registration: As a new resident of Tennessee, you must obtain a driver’s license and register your vehicle within 30 days of establishing residency. You’ll also need proof of Tennessee auto insurance before registering your vehicle.
- Severe Weather Preparedness: Tennessee experiences tornadoes, severe thunderstorms, and flash flooding, especially during spring. Know your local emergency shelters, enable weather alerts, and consider flood insurance if you’re moving to a high-risk area.
👉 Looking for a safe place to settle down? Check out the safest cities in Tennessee and find a community that fits your lifestyle and budget.
Should I Move to Tennessee?
Yes, Tennessee is a great place to live. With no state income tax, affordable housing, a growing job market, and abundant outdoor recreation, the Volunteer State offers an excellent balance of opportunity, affordability, and quality of life.
However, relocating to Tennessee takes more than packing your belongings. Finding the right city or neighborhood requires research into housing costs, jobs, schools, and commute times. Careful planning can help you find the right place to call home.
