Located on the Tennessee River in the eastern part of the state, Knoxville, Tennessee is growing in popularity among retirees. This energetic city makes a great retirement destination because of its approachable real estate market with many 55+ communities. There’s also an abundance of entertainment and recreation as well as a friendly, welcoming environment that locals are proud of showing off.
Moving to Knoxville, TN is a great idea for active adults looking for comfort and recreation opportunities. Let’s talk about what you need to know before you make the move!
Retiring in Knoxville: Pros and Cons
Why move to Knoxville? There are several good reasons to retire in Knoxville. The city has a relaxed lifestyle and a growing economy. Here’s a brief list of benefits that retirees enjoy after moving to Knoxville, TN as well as a list of challenges that you’ll want to prepare for before setting into your new home.
Pros
Cost of Living
The cost of living in Knoxville is about 14% lower than the national average, according to the local Chamber of Commerce. That means less money spent on housing, health care, groceries, and gas, and more money saved for travel, hobbies, entertainment, and enjoyment. It’s been ranked as one of the most affordable cities to live in for several years. This means that active adults’ retirement dollars will go further.
Culture and Entertainment
Residents are rarely looking for something to do in Knoxville, and that’s because there’s plenty to entertain. The historic Tennessee Theatre puts on everything from opera and musicals to the Rocky Horror Picture Show. There’s also the Bijou Theatre, which attracts guests with live music, local acts, and comedy shows.
Outdoor Recreation
The pleasant climate allows for a lot of exploration out-of-doors, and Knoxville has many parks, hiking trails, and greenspaces for residents to enjoy. Seven lakes surround the city, providing excellent opportunities for boating, fishing, kayaking, canoeing, and paddleboarding. Also, there are parks such as Fort Dickerson Park (which has Civil War sites) and Concord Park with several walking and hiking trails. Cumberland Gap National Historical Park and the Great Smoky Mountains are within a couple of hours away, making for a nice day trip.
Cons
Hang Onto Your Car
Moving to Knoxville, TN isn’t a great idea if you’re hoping to rely on public transportation to get around. It’s pretty limited in Knoxville. There’s a trolley running between Downtown Knoxville and the University of Tennessee. There’s also a bus, but service is limited to about 20 fixed routes and not all of those routes run seven days a week. You’ll need a car or a budget for rideshare services.
Complicated Travel To and From Knoxville
There’s a local airport in Knoxville which is served by major airlines like American and United. However, it’s not an international airport, and unless you’re flying regionally or to a connection in an airline-specific hub city, you’ll need to travel about 175 miles to Nashville International Airport.
Higher Sales Tax
Knoxville has a lower cost of living than any other metropolitan city in Tennessee, but its sales tax is higher than most other cities. In 2024, the sales tax in Knoxville is 9.25%, which incorporates the 7% statewide sales tax.
Getting to Know the Knoxville Climate
Knoxville has an average of 207 sunny days per year, which is two more than the national average. This is a humid subtropical climate, with hot and humid summers and mild winters. While Knoxville is very much a southern city, there are still seasons. There’s pretty foliage in October and November, and the occasional snow day in the winter.
Average Temperatures and Rainfall
Average temperatures are easy to plan for. The average temperature in July is 78.4 degrees, and the average temperature in January is 38.2 degrees. A summer heatwave will sometimes push temperatures into the 90s, and the coldest winter day on record was in January of 1985, when temps dropped to -21 degrees.
Rain is most frequent in the late fall and throughout the winter. Summer thunderstorms also bring rain and sometimes the threat of tornadoes.
Outdoor Recreation
With so much pleasant weather, active adults enjoy golfing, hiking, fishing, and scenic spots such as the Knoxville Botanical Garden and Zoo Knoxville. Horseback riding is also a popular hobby in Knoxville, and there are numerous riding stables and equestrian centers throughout the area.
Knoxville Taxes
Knoxville is tax-friendly, notably because there’s no state income tax. The sales tax, as we’ve discussed, is higher than most residents would like, but it’s easily absorbed considering the lower-than-average cost of living and the lack of a state income tax. There are also additional tax breaks available for qualified retirees in the form of a property tax freeze. Overall, moving to Knoxville, TN allows retirees to keep more of their income and savings.
Knoxville Property Taxes
The property tax rate in Knoxville is on par with the rest of the state and much lower than the national average. Real estate taxes are levied by the city against the value of the property you own. It’s a tax on land and any improvements on it. Generally, those property taxes are charged for every $100 of assessed value. There are Knox County property taxes as well as city property taxes. Like the city, Knox County charges taxes for every $100 assessed value.
Knoxville Income Taxes
Retirement income is not taxed at the state or local level in Knoxville. While residents are responsible for their federal income taxes, they won’t have to pay state taxes. That includes Social Security income and other retirement income sources. There are also no estate taxes or inheritance taxes at the state level in Tennessee.
Tax Exemptions for Seniors
Seniors enjoy extra tax exemptions in Knoxville if they qualify. The General Assembly funds property tax relief for low-income and disabled homeowners who are 65 years of age or older. There’s also a property tax freeze at the county level for homeowners who meet age or disability, income, and residency requirements.
Knoxville Health Care
The University of Tennessee Medical Center is well-known for being a research and academic hospital, and it also provides award-winning healthcare to the community. The medical team specializes in heart health, cancer research, and orthopedics. There’s a Center for Complex Medicine, a Heart Lung Vascular Institute, and an Emergency Trauma Center in addition to a primary care collaborative.
Where to Live in Knoxville
If you’re moving to Knoxville, TN, you’ll want to know where to settle. The city and surrounding areas are full of diverse neighborhoods such as the Old City, Whittle Springs, Old North Knoxville, and Fort Sanders. There are neighborhoods close to the university and residential areas in the downtown area.
A growing collection of 55+ communities is also showing up throughout the surrounding Knoxville area. Some of those featured active adult communities look like this:
Tellico Village – Loudon, TN
Low $400ks – Mid $3Ms
A master-planned community well-known throughout the Knoxville area is Tellico Village. This active lifestyle neighborhood has a variety of homes for sale, from attached townhomes to private single-family estates. There are also three golf courses with clubhouses, a private country club, and an onsite activities director who helps to organize social functions, activities, classes, and events.
Loudon is nestled along the Tennessee River about half an hour south of Knoxville, allowing for easy trips to all the entertainment that Knoxville has to offer.
Fairfield Glade – Crossville, TN
Below $100k – Mid $1Ms
Bring the golf clubs and the horses! About an hour west of Knoxville is Fairfield Glade, in Crossville, Tennessee. This active lifestyle community has everything retirees are looking for in a home, with attached condos and townhomes as well as single-family models.
Several amenity centers are available to residents and include fitness centers, pools, and tennis. This master-planned community has five golf courses, houses of worship, a medical center, restaurants, an equestrian facility, and fishing lakes with marinas.
Rarity Bay – Vonore, TN
Mid $300ks – Mid $4Ms
Homebuyers who like a gated community will want to consider Rarity Bay, an active lifestyle community in Vonore, Tennessee. The 1,600 homes include floor plans ranging from 1,200-square-foot condominiums to 6,000-square-foot luxury single-family homes.
There’s an Equestrian Center, golf courses, miles of trails, and Tellico Lake. Residents can also buy a membership at the community’s private Grand Swimming & Tennis Club. Vonore is at the foothills of the Smoky Mountains, offering astonishing views and a 50-minute drive to Knoxville.
The Grove at Cedar Hills – Lenoir City, TN
Mid $500ks – Low $600ks
An intimate community of only 67 homes, The Grove at Cedar Hills is an active lifestyle community that offers tranquility and serenity within a well-landscaped, low-maintenance neighborhood. The clubhouse has multipurpose rooms, a fitness center, and a pool. There’s also pickleball.
Single-family homes have 1,519 to 2,769 square feet, two or three bedrooms, and features such as private outdoor patios, dens, and formal dining rooms. Lenoir City is the “Lake Capital of the South” because of its three lakes and attractive park system.
Cottages at Pryse Farm – Farragut, TN
Mid $500ks – Low $700ks
Just a short drive from Knoxville is Cottages at Pryse Farm, an active lifestyle community of single-family and attached homes in Farragut, Tennessee. This community offers an excellent opportunity to get to know neighbors, with only 99 homes and a large clubhouse. There are billiards tables, card tables, a large-screen television, and a fireplace. Residents also enjoy a pool, a kitchen, and outdoor trails and walking paths that offer mountain views. The homeowners’ association (HOA) includes lawn care, landscaping, and snow removal, and the cottages are in two collections with open floor plans.
Explore Homes for Sale in Knoxville!
Ready to move to Knoxville? Discover all this vibrant city has to offer and find the home that fits your lifestyle. Reach out to 55places.com today to explore the best homes for sale in Knoxville!
