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Why Veterans Are Choosing East Tennessee in 2026
There is a reason Tennessee is called the “Volunteer State,” and it goes a lot deeper than college sports. For generations, this region has held a deep cultural respect for military service, and you feel that appreciation the moment you step into a local coffee shop or hardware store. But beyond the patriotism and the handshakes, there are very practical reasons why service members are flocking here in 2026.
The financial draw is usually the first thing that catches a buyer’s eye. Tennessee has positioned itself as one of the most tax-friendly states in the nation for veterans, which we will dive into shortly. When you combine that with a lower-than-average cost of living, your BAH or retirement pension simply stretches further here than it does in coastal markets.
Then there is the geography. Whether you are moving to East Tennessee for a second career or for a quiet retirement, the landscape offers a massive decompression zone. Between the Great Smoky Mountains and the countless TVA-managed lakes, the opportunities for outdoor therapy are endless. In this guide, we are going to break down the different pockets of the region, from the bustling hubs like Knoxville to the quiet, historic retreats near Jonesborough.
Tennessee Veteran Benefits & Financial Perks (2026 Update)
If you are looking at the numbers, you probably already know that Tennessee is a low-tax state. However, for veterans specifically, the financial picture is even better. It is one of the main reasons we see so many moving trucks crossing the state line.
Here is how the major benefits shake out:
- Zero State Income Tax: Tennessee does not tax your wages. That is standard for everyone. But specifically for you, there is 0% state tax on military retirement pay. Whether you are working a civilian job or living on your pension, the state keeps its hands off your income.
- Property Tax Relief: For veterans with a 100% service-connected disability rating (or their surviving spouses), there are property tax relief programs available. This can significantly reduce your annual housing bill.
- General Housing Costs: Even without exemptions, property taxes in East Tennessee are generally much lower than national averages.
A quick note on the property tax relief: These programs are managed at the county level and rely on state funding thresholds which can shift. While the benefit is substantial, you should always verify the 2026 specific income limits and application status with the local County Trustee’s office where you plan to buy affordable homes in East Tennessee.
Knoxville & Maryville: The Air Base Hub
If you are still active Guard, Reserve, or just want to be near a military installation, the area surrounding McGhee Tyson Air National Guard Base is likely your best target. Located in Blount County, just south of Knoxville, this area serves as the operational heart for military activity in the region.
Maryville and Alcoa Most people stationed at or working near McGhee Tyson choose to live in Maryville or Alcoa. These towns offer a distinct suburban feel with a heavy emphasis on community. The commute to the base is negligible—usually 10 to 15 minutes—which is a luxury if you are used to big-city traffic. Maryville is particularly sought after for its access to educational programs and pedestrian-friendly downtown, making living in Maryville TN a top choice for those transitioning to civilian life.
Knoxville Just a short drive north is Knoxville. This is the right spot if you want urban amenities, nightlife, and SEC sports. The University of Tennessee is here, and they have a robust Veterans Resource Center if you are planning to use your GI Bill. For healthcare, Knoxville is home to the William C. Tallent VA Outpatient Clinic. It handles most routine needs, though it is worth noting it is a clinic, not a full inpatient hospital.
This hub is also ideal for the working veteran. With Oak Ridge National Laboratory nearby and a growing logistics sector, finding a second career in federal work or defense contracting is a common path for new residents checking out the Knoxville neighborhoods guide.
Johnson City & The Tri-Cities: The Medical Hub
For retirees where healthcare access is the absolute number one priority, the Tri-Cities area (Johnson City, Kingsport, Bristol) is often the winner. While Knoxville is bigger, Johnson City is the medical heavyweight for veterans in this corner of the country.
Mountain Home VA Medical Center Johnson City is home to Mountain Home, a full-service VA Medical Center. This is not just a clinic; it is a massive campus serving veterans from Tennessee, Virginia, and Kentucky. Living in Johnson City TN means you are likely minutes away from acute care, specialists, and pharmacy services without having to wait for a referral to a civilian hospital.
East Tennessee State University (ETSU) Right next door to the VA is ETSU, which is consistently ranked as a military-friendly school. The synergy between the university and the VA creates a very supportive environment for vets.
Jonesborough If you prefer a slower pace, look at Jonesborough. It is Tennessee’s oldest town, full of historic charm and brick sidewalks, yet it is only a short drive to the hospital. The Tri-Cities real estate market also tends to be slightly more affordable than the Knoxville metro area, offering great value near Watauga Lake and the mountains.
Chattanooga: River City & Border Connectivity
Chattanooga offers a completely different vibe. It is known as the “Scenic City” and has reinvented itself as a tech and outdoor recreation hub. If your transition plan involves launching a startup or getting into logistics, this is a smart place to look.
The city has a dedicated VA Outpatient Clinic that handles primary care and mental health services. For major trauma or specialized surgeries, you are supported by large civilian systems like Erlanger. The lifestyle here is heavily focused on the river and the mountains. It is a fantastic area for veterans who use climbing, kayaking, or hiking as part of their wellness routine.
Geographically, living in Chattanooga puts you right on the Georgia border. This offers flexibility for spouse employment or travel, though most veterans choose to live on the Tennessee side to keep those tax benefits we discussed earlier.
Retirement Favorites: Tellico Village & Loudon County
If you are fully retired and looking for a community that understands your background, you can’t overlook the planned communities in Loudon County.
Tellico Village Tellico Village is one of the premier retirement destinations in the Southeast. It sits along Tellico Lake and has a very high population of retired military officers and enlisted personnel. The social infrastructure here is massive—there are specific clubs for different branches of service, golf leagues, and volunteer organizations.
When you look at Tellico Village homes for sale, you aren’t just buying a house; you are buying into a built-in social network. It is located about 30 to 40 minutes from the medical facilities in Knoxville, which offers a nice balance: you are insulated from the city traffic and noise, but close enough to get to a specialist when you need one. It is a major highlight for anyone thinking about retiring in Tennessee.
Healthcare Access: VA and Civilian Options
When planning your move, it is critical to distinguish between the different types of care available. We often see buyers assume every city has a “VA Hospital,” but that isn’t the case.
- The Hub vs. The Spokes: As mentioned, the full-service hospital is Mountain Home in Johnson City. Knoxville, Chattanooga, and smaller towns like Rogersville utilize Outpatient Clinics. These are great for check-ups, labs, and audiology, but for complex issues, you may be referred to Mountain Home or a community partner.
- Civilian Care & TRICARE: The region has excellent Level I Trauma centers, such as UT Medical Center in Knoxville and Erlanger in Chattanooga. Most major health systems here—including Ballad Health in the Tri-Cities—are accustomed to working with TRICARE and VA community care referrals.
- The Rural Trade-off: We have plenty of beautiful, secluded cabins in the mountains. Just remember that “secluded” often means a 45-minute drive to the nearest pharmacy or doctor. Balance your desire for privacy with your need for regular medical access.
Lifestyle & Recreation for Service Families
Beyond the taxes and the hospitals, East Tennessee offers a lifestyle that helps many veterans transition smoothly back to civilian life. There is a therapeutic value to the outdoors here that is hard to quantify but easy to feel. Whether it is section-hiking the Appalachian Trail, fishing for bass on Douglas Lake, or just sitting on a porch looking at the foothills, the pace of life here is restorative.
The community culture is also a major plus. You will find that military discounts are common and genuine respect for service is part of the local DNA. If you enjoy sports, the “Vol Navy” tailgating on the Tennessee River and the football culture at UT provide an energetic, team-focused atmosphere that many veterans miss after leaving the service. There is no shortage of things to do in East Tennessee that help you stay active and connected.
Frequently Asked Questions
Does Tennessee tax military retirement pay?
No, Tennessee does not tax military retirement pay. Additionally, there is no state income tax on civilian wages, meaning your post-service income is yours to keep.
Where is the main VA hospital in East Tennessee?
The primary full-service hospital is the Mountain Home VA Medical Center located in Johnson City. Knoxville and Chattanooga have large VA Outpatient Clinics that handle primary care and many specialties, but they are not inpatient hospitals.
Is housing cheaper near McGhee Tyson Air Base?
Generally, yes. The areas immediately surrounding the base, such as Alcoa and Maryville, tend to offer more competitive pricing than downtown Knoxville or the luxury lakefront markets. It is a very practical area for active Guard members or federal employees.
Are there property tax exemptions for disabled veterans in Tennessee?
Yes, Tennessee offers property tax relief for 100% disabled veterans and their surviving spouses. However, eligibility and funding caps can vary by year, so it is essential to check with the local county trustee for the 2026 guidelines.
