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Overall Rating: 85/100 · 400,000 veterans (5.8% of population)
Reviewed 2026. Programs and exemptions verified against Tennessee veterans-affairs and tax-authority sources.
Benefit details verified January 2025. Tax exemptions, caps, and eligibility change and can vary by county — always confirm current figures with your county assessor and your Tennessee Department of Veterans Affairs before you rely on them.
Tennessee has no state income tax on any income including military retirement, wages, pensions, Social Security, investment income, or capital gains.
0.63% average effective rate
Tax on first $175,000 of value reimbursed
100% P&T (or combat-related/POW/specific loss): state reimburses tax on the first $175,000 of market value. Reimbursement-based. Nothing below 100%.
Source ↗VA automobile grant recipients exempt from sales tax on portion exceeding grant amount. 100% P&T disabled veterans with VA adaptive vehicle receive full exemption from sales tax, registration fees, and local wheel tax.
$107,500
VA Medical Center
1310 24th Avenue South, Nashville, TN 37212
(615) 327-4751
Full medical center with primary care, specialty care, mental health, surgery, inpatient services, emergency care. Specialties: Cardiology, oncology, orthopedics, primary care, mental health, neurology, audiology, optometry, physical therapy.
VA Medical Center
1030 Jefferson Avenue, Memphis, TN 38104
(901) 523-8990
Full medical center with primary care, specialty care, mental health, surgery, inpatient services, emergency care. Specialties: Cardiology, oncology, surgery, primary care, mental health, spinal cord injury center, polytrauma services.
VA Medical Center
Corner of Lamont Street and Veterans Way, Mountain Home, TN 37684
(423) 926-1171
Full medical center with primary care, specialty care, mental health, surgery, inpatient care, emergency care. Specialties: Cardiology, oncology, surgery, primary care, mental health, geriatrics, rehabilitation.
State Tuition Waiver
Dependent children under age 23 of 100% totally and permanently disabled Tennessee veterans, POWs, MIA, Medal of Honor recipients, or veterans who died from service-connected causes. Parent must be Tennessee resident.
4-year value: $52,976
Tax Benefit
100% P&T service-connected disability from VA, former POWs, paraplegic veterans, loss of use of limbs, or legal blindness (service-connected). Tennessee resident, primary residence only.
4-year value: $10,000
Median Home
$460,000
1BR Rent
$1,400/mo
COL Index
99
Unemployment
3.3%
Major employers: HCA Healthcare (HQ), Vanderbilt University Medical Center, Bridgestone Americas (HQ), Nissan, state government, Amazon, healthcare sector.
Pros: Best job market in Tennessee, VA Medical Center in city, state capital with government jobs and veteran preference, Music City culture, no state income tax, 100% disabled property tax relief ($2,500-$2,898/year), major airport (BNA), universities (Vanderbilt, Tennessee State), diverse economy.
Cons: Housing prices rising (median $460K), traffic congestion, higher cost than most TN cities, urban density, tourist crowds downtown, hot humid summers.
Median Home
$335,000
1BR Rent
$1,200/mo
COL Index
89
Unemployment
3.4%
Major employers: University of Tennessee, UT Medical Center, Tennessee Valley Authority (TVA), Eastman Chemical, Oak Ridge National Laboratory, Regal Entertainment, Pilot Flying J, manufacturing.
Pros: Affordable housing ($335K), University of Tennessee (GI Bill, 1,000+ student veterans), Great Smoky Mountains proximity (45 min), growing job market, low crime, no state income tax, 100% disabled property tax relief ($2,178/year), college town energy, outdoor recreation paradise.
Cons: Smaller job market than Nashville, VA specialty care requires 90-minute drive to Mountain Home, fewer urban amenities, hot humid summers, UT football traffic on game days.
Median Home
$295,000
1BR Rent
$1,100/mo
COL Index
89
Unemployment
3.2%
Major employers: BlueCross BlueShield of Tennessee (HQ), Erlanger Health System, TVA, Volkswagen Chattanooga, Unum Group, Amazon, UTC.
Pros: Affordable housing ($295K), outdoor recreation hub (rock climbing, hiking, Tennessee River), Gig City (fastest internet in America), revitalized downtown, low cost of living, no state income tax, 100% disabled property tax relief ($2,065/year), growing tech scene, beautiful scenery.
Cons: VA specialty care requires 90-minute drive to Mountain Home, smaller job market than Nashville, hot humid summers, some neighborhoods have higher crime, limited nightlife compared to Nashville.
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$0 down, no PMI. Funding fee waived for service-connected veterans.
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Veterans who meet the minimum qualifications for open state preferred-service positions are guaranteed an interview, and preference is given to the veteran when qualifications are equal to other applicants.
Official source ↗Under the TEAM Act, a supervisor who passes over an eligible veteran for a preferred-service job must record the reasons in writing and make that record available to the veteran; eligible veterans also get 60 months of service credit for reduction-in-force seniority.
Official source ↗Tennessee residents who are 30% or more disabled by reason of war service qualify for sport hunting and fishing licenses with no fee, using VA certification of the disability.
Official source ↗Tennessee-resident 100% permanent and total service-connected disabled veterans can obtain a permanent sport combination hunting and fishing license for a one-time $10 fee, valid for life.
Official source ↗Tennessee issues, free of charge, registration and a Disabled Veteran plate for a vehicle owned or leased by a qualifying disabled veteran (or the veteran and spouse); one plate is free.
Official source ↗Honorably discharged veterans may present a DD-214 at any driver services center to have a veteran designation displayed prominently on their driver license or photo ID card.
Official source ↗Tennessee operates state veterans homes (Murfreesboro, Humboldt, Knoxville/Ben Atchley, Clarksville/Gilbert, and Cleveland) for honorably discharged veterans needing skilled care who have a Tennessee tie; spouses and Gold Star parents are admitted on a space-available basis.
Official source ↗The disabled-veteran property tax relief transfers to the unremarried surviving spouse who solely or jointly owns and uses the home as a primary residence; relief is calculated on up to $175,000 of market value.
Official source ↗Sourced from official state agencies; programs and eligibility change — confirm with your Tennessee Department of Veterans Affairs before applying.