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Overall Rating: 85/100 · 400,000 veterans (5.8% of population)
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
Up to $100
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.
Most veterans considering Tennessee for relocation pair this with one of these next steps:
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Buying a home
$0 down, no PMI. Funding fee waived for service-connected veterans.
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