Retirement Communities in East Tennessee: A 2026 Guide to Living the Good Life

If you are looking at retirement maps lately, you might notice a shift. For years, the standard move was straight down I-95 to Florida. But as we settle into 2026, we are seeing a different trend taking hold. We call it the “half-back” phenomenon – retirees who moved to Florida, realized the humidity and hurricane insurance were too much, and moved halfway back up to living in East Tennessee.

Of course, plenty of folks are skipping the Florida step entirely and coming straight here from Illinois, New York, and California. East Tennessee offers a “Goldilocks” climate. You get the four distinct seasons you are used to, but without the brutal winters of the North or the oppressive, year-round heat of the Deep South.

Beyond the weather, this region is incredibly accessible. You are within a day’s drive of 60% of the U.S. population, making it easy for grandkids to visit or for you to head back north for holidays. Economically, while coastal markets have seen some volatility, the housing market here has remained remarkably stable, offering a safe harbor for your nest egg.

 

The Financial Case: Taxes and Cost of Living

Let’s get right to the numbers, because financial freedom is usually the biggest driver for moving to Tennessee.

The headline benefit here is taxes. There is no state income tax on wages. More importantly for retirees, there is no state tax on Social Security, pensions, or 401(k) distributions. What you draw is what you keep. When you compare that to the chunk taken out by states like New York or California, it acts like an immediate raise to your monthly budget.

Property taxes are another area where you will feel the difference. While values have risen over the last few years, the actual tax bill is generally significantly lower than the national average. It is not uncommon for a transplant from New Jersey or Illinois to find their annual property tax bill in Tennessee is a quarter of what they were paying back home.

There is a trade-off, and it is important to be transparent about it: sales tax. Tennessee has one of the higher sales tax rates in the country, averaging around 9.75% once you combine the state rate (~7%) with local options (~2.75%). However, most retirees find that the lack of income tax on their retirement draws far outweighs the extra pennies paid at the register.

When you look at the overall picture, the cost of living in East Tennessee typically hovers around 85% to 90% of the national average. Housing costs generally sit 10% to 20% below the national median, giving you significantly more purchasing power.

 

Navigating Community Types: Active Adult vs. Independent Living

Before we talk about specific neighborhoods, we need to clarify the terminology. The industry throws around terms that can be confusing, and knowing the difference ensures you tour the right places.

Active Adult / 55+ Communities are lifestyle-focused. These are neighborhoods designed for people who want to be busy. You will usually find a clubhouse, pickleball courts, and an HOA that handles all exterior maintenance and lawn care. These do not include medical care or meal plans; it is simply regular homeownership with better amenities and fewer chores.

Independent Living is often a step toward assisted living but is still for active people. These setups often include housekeeping, linen service, and meal plans in a central dining room. If you are looking to completely remove the burden of cooking and cleaning, this is the category to search for.

Resort-Style Master Planned Communities are the giants of East Tennessee. These are large-scale developments – often over 1,000 acres – that focus heavily on golf and lakes. While they are dominant among the 55+ crowd, they are often not strictly age-restricted on the deed. This means you might have neighbors of different ages, though the lifestyle is tailored to retirees.

Condo and Patio Home Enclaves are smaller neighborhoods, often tucked inside standard suburbs. Companies like Epcon Communities build these “courtyard” style homes that offer single-level living without the massive scale of a resort.

 

Top Lake & Golf Resort Communities

If you are looking for the “cruise ship on land” lifestyle, three communities usually rise to the top of the list. These are massive developments that function almost like small towns.

Tellico Village (Loudon) Tellico Village is the giant of the region. Located just south of Lenoir City, it sits right on the banks of Tellico Lake. It is un-gated, which gives it a welcoming, open atmosphere, yet it feels very secure. The social life here is unmatched; if you have a hobby, there is a club for it. The community boasts three golf courses and a massive wellness center. Homes here have appreciated, with the median generally sitting in the $430,000 to $450,000 range.

Fairfield Glade (Crossville) Locals often call Fairfield Glade the “Retirement Capital” of the Cumberland Plateau. Because it sits at a higher elevation on the plateau, summer temperatures here are often a few degrees cooler than in the Tennessee Valley. It is a massive complex with five golf courses and 11 lakes. The price point here is generally more accessible than the luxurious waterfront communities closer to Knoxville, with median home prices often hovering in the $330,000 to $350,000 range.

WindRiver (Lenoir City) If you are looking for luxury, WindRiver is the answer. This is a gated community that offers a true resort experience. It features a world-class marina, a highly-rated golf course, and distinct architecture. It is a premium market, with estates and villas often commanding prices in the $800,000s and well above.

 

Mountain & Nature-Focused Retreats

Not everyone wants a packed social calendar or a tee time every Tuesday. Some retirees come here for the quiet beauty of the mountains.

Rarity Bay (Vonore) Rarity Bay offers a different flavor of luxury. It is known for its French Country architecture and stunning views of both the lake and the Great Smoky Mountains. It also appeals to horse lovers, featuring equestrian facilities that you won’t find in the standard golf communities.

Cumberland Cove (Monterey) If you prefer trees over fairways, look at Cumberland Cove. It is located on the plateau near Fairfield Glade but has a completely different vibe. The lots are large and heavily wooded, offering immense privacy. It is deed-restricted to keep the neighborhood looking nice, but it feels more like living in a private park than a resort.

Black Creek (Chattanooga) Located just outside downtown Chattanooga, Black Creek is perfect for the active hiker. The community features “The Pass,” a mountaintop section with incredible views and miles of nature trails. It combines the serenity of mountain living with very quick access to the gigabit-internet city of Chattanooga.

 

Urban & Suburban Active Living Options

Perhaps you want to be closer to the action. If being 20 minutes from a grocery store sounds unappealing, you might prefer the urban or suburban active living options.

Knoxville Suburbs (Farragut/Hardin Valley) Farragut is one of the premier suburbs in East Tennessee. Here you will find communities like The Grove at Cedar Hills, which offer low-maintenance patio homes. You get the benefits of new construction and HOA-covered lawn care while being minutes from Turkey Creek shopping center and top-tier restaurants.

Tri-Cities (Johnson City/Kingsport) The Tri-Cities area offers excellent value. Developments like The Courtyards offer active adult patio homes similar to what you see in larger cities but often at a lower price point. Johnson City is a vibrant college town (ETSU) with a great downtown scene that attracts many active retirees.

Chattanooga Chattanooga is consistently voted one of the best outdoor cities in the country. For those looking for Independent Living with a rental model rather than ownership, places like Ashwood Square provide a vibrant lifestyle without the property taxes or home maintenance.

 

Healthcare Access & Senior Services

When planning for the next 20 years, healthcare proximity is non-negotiable. Fortunately, East Tennessee punches above its weight in medical infrastructure.

Knoxville serves as the medical hub for the region, anchored by the University of Tennessee Medical Center. It is a Level I Trauma Center and a teaching hospital, offering specialists in almost every field. If you choose a community like Tellico Village or WindRiver, you are generally 30 to 45 minutes from this hub.

In the northeast, the Tri-Cities are served by the Ballad Health network. Johnson City is also home to the Mountain Home VA Medical Center, which is a massive draw for military retirees seeking strong veteran support.

Down south, Chattanooga is anchored by the Erlanger Health System, a major comprehensive system that serves the entire tri-state area of TN, GA, and AL.

 

Lifestyle: The East Tennessee Rhythm

So, what does a Tuesday look like here? For many, it revolves around the outdoors. We have the Great Smoky Mountains National Park in our backyard, offering arguably the best hiking in the eastern United States. The region is also defined by water – from boating on the Tennessee River to fishing in Tellico Lake, life here is aquatic.

There is also a strong university culture. Living near Knoxville means you have access to University of Tennessee sports – the energy of a Vols game day is something you have to experience to understand. But it is not just sports; the universities offer continuing education classes that many retirees take advantage of to learn new skills or history.

And finally, the climate ties it all together. You will get a dusting of snow occasionally – just enough to look pretty on the pines – but it is usually gone by noon. Spring and Fall are long, vibrant, and perfect for porch-sitting.

 

Frequently Asked Questions

 

What is the most affordable retirement community in East Tennessee?

If budget is your primary concern, Fairfield Glade in Crossville is consistently one of the most affordable large-scale options. Lake Tansi, also in Crossville, is another value-focused community that offers lake access and golf at a lower entry price than the Knoxville-area resorts.

 

Does Tennessee tax retirement income in 2026?

No, Tennessee does not tax retirement income. This includes Social Security, pensions, 401(k) withdrawals, and IRAs. There is also no tax on wages, making it one of the most tax-friendly states for retirees in the country.

 

Is Tellico Village a 55+ community?

Tellico Village is an active adult community, but it is not strictly age-restricted to 55+ on the deed. While the vast majority of residents are retirees, you will occasionally find younger families. This structure avoids some of the rigid legal restrictions of a chartered 55+ neighborhood while still maintaining the retirement lifestyle.

 

What are the best towns to retire in East Tennessee?

Outside of specific gated communities, the towns of Loudon, Crossville, and Johnson City are top choices. Loudon offers lake access, Crossville offers affordability and golf, and Johnson City offers a blend of mountain scenery, university culture, and veteran services.