by TJ AndersonThere’s a lot to celebrate about the Nashville food scene, and rightly, folks from around the country have been celebrating us more and more, for years now. The New York Times
Retiring In Tennessee Could Save You Thousands
by TJ Anderson
I’m probably a good distance from retiring — luckily, I love what I do as a Nashville Realtor, so I’m not in a hurry. And, either way, some added convenience: I figure I’ll probably retire right where I am, in Middle Tennessee.
Personal reasons keep me here — I love living in Nashville, I love my community, I love my home, I love having great friends and family nearby. But practical reasons figure in, too, including the benefits of living in a low-tax state.
This is on my mind because of a Time story I was just reading: “This Couple Discovered a Simple Way to Save Tens of Thousands of Dollars a Year When They Retire.” Such savings, tell me more, magazine!
Anyhow, said couple is planning on ditching California for Nevada when retirement time comes, in part because doing so would remove a considerable state tax burden. The story, in a broader sense, makes the case for moving to a low-tax state in retirement, and it breaks down how recent tax law changes can affect homeowners in different states with different rates.
Their calculation for a Californian couple moving to Nevada would also hold true for a Californian couple moving to Tennessee: A hypothetical retiree with just shy of $1 million in annual income would save more than $108,000 in state income taxes by settling here instead, according to the magazine's number-crunching. That right there alone is about enough to buy a six-acre piece of Center Hill Lake property to build a weekend cabin on, which, come to think of it, fits right in to my personal retirement plans.
Also from that piece, pertinent to potential future Tennesseans:
“Seven states don’t levy individual income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. In addition, Tennessee only taxes interest and investment income, but it’s in the process of phasing that out. And New Hampshire limits personal income tax to interest and dividend income.
“Perhaps not by coincidence, six of these states — Florida, Nevada, South Dakota, Texas, Washington, and Tennessee — routinely show up in lists of the most popular states for retirees who are relocating, according to recent surveys.”
It’s not just taxes making Nashville appealing
This is just about obvious enough to go without saying, but even as home prices in Nashville have risen considerably, a retiree is still getting a lot more for their home dollar in Nashville than in Southern California, where Time magazine’s near-retirees live.
Even back a few years ago, Middle Tennessee was getting touted as “retirement mecca,” offering “excellent health care and plenty of cultural, sports and entertainment opportunities” and a growing crop of new subdivisions catering to retirees, like the Water’s Edge subdivision in Franklin and Cottages at Bent Creek in Nolensville.
Another good indicator: In its short list of the “50 Best Master-Planned Communities in the U.S.,” Where to Retire magazine pointed to Westhaven in Franklin, a manicured community stocked with classic-style newer homes.
For retirees who prefer urban living, you can find contemporary condos in East Nashville listed at under $240K, and multi-level (but elevator-boasting) lofts in the heart of Franklin with outdoor space and gorgeous views. We contain real estate multitudes.
Sure, leaving the coast, you’re sacrificing proximity to the beach, and there are a few weather trade-offs. But the Nashville area is teeming with pluses, both cultural and practical, and lake life ain’t so bad.
Thinking about whether retiring in Middle Tennessee might be the right move for you? I’d be more than happy to talk with you about various options, and show you around the area. Just call or email TJ Anderson Homes here.
Properties are listed with their own respective real estate firms, and not under agreement with TJ Anderson and/or Benchmark Realty, LLC, except where noted.
TJ Anderson is a Nashville Realtor with Benchmark Realty who's helped countless clients both buy a home and sell a home in Nashville, Tennessee. He blogs about Nashville regularly, from Nashville-area....
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