How This Tennessee City Became a Top Retirement Spot in the South

The Tennessee migration is real, with the state being sixth in the nation in population growth from 2022 to 2023. Tennessee has some notable large urban areas, but one under-the-radar choice if you’re looking to relocate to the Volunteer State is Maryville. According to the most recent census data, the town, located just south of Knoxville, has a small population of just under 32,000. But don’t be surprised if more and more retirees begin flocking there once the word gets out.

Maryville is best known for its small-town feel and Smoky Mountain views. The median age in the city skews a bit younger at 41.2, making it a hip spot for active seniors who prefer to feel young at heart. More importantly, it also has affordability appeal for budget-minded seniors. In fact, Maryville is recognized as one of the most affordable places to retire in the South by Investopedia and Southern Living. Learn more about this hidden gem in the Smoky Mountains.

Below-Average Cost of Living

In Maryville, the median income is $74,610, which is almost even with the national median of $74,580. However, median home prices are lower in Maryville compared to the national cost, putting aspiring homebuyers in a more favorable financial position.

Specifically, the median home sale price in Maryville is $374,066, resulting in an income-to-home value of about 19.9%. In comparison, the national income-to-home value is 17.7%, based upon a median home price of $420,400 as of the third quarter of 2024.

The median housing cost of $1,125 is 3% lower than the average in the South overall (which is $1,163 per month). 

Why This Is Key to An Affordable Retirement

Housing is one of the crucial expenses to think about in retirement since it typically eats up the largest portion of the monthly budget. 

Choosing an area that has low housing costs can put you in a better position to stretch your retirement income further. This is one of the key reasons that Maryville ranked No. 7 in Investopedia’s “Best Places To Retire in the South” report.

Low Property Taxes

One of the things keeping housing costs manageable is the relatively low property tax burden. Tennessee ranks 41st in the nation for property taxes paid as a percentage of owner-occupied housing value, with number one being the highest rate. For Blount County, where Maryville is located, the average county tax rate is 0.600%. On a home valued at $274,066, that would mean a yearly property tax bill of about $1,644.

Why This Is Key to an Affordable Retirement

Property taxes can be a budget killer, even for people who may have paid off their mortgage—just ask homeowners in places like the Northeast or California. Because they are an ongoing expense that is likely to increase over time, if you can start off at a lower level when you retire, it can help you safeguard your limited income.

No Income Tax

Tennessee does not have an individual income tax, meaning that any retirement income you have, from your Social Security check to your pension to retirement account distributions, will not be taxed. It is one of just nine income tax-free states in the country.

The state also has the third lowest average combined state and local tax burden in the nation at 7.6%. 

Why This Is Key to an Affordable Retirement

Not having to pay taxes on income can be a huge deal for retirees who are on a fixed income. Especially if you’re relocating from a high-income-tax state, it can be like getting an automatic raise just for moving.

Finding a “pension-friendly” state is one of the key factors many people think about when they are considering where they want to live in retirement. If this is important to you, then Tennessee’s no-income-tax policy may motivate you to explore your options there.

Other Surprising Perks of Maryville, Tennessee for Retirees

Maryville is a respite from overcrowded, tourist-filled areas like Nashville, but it has the benefit of being in the foothills of the Smoky Mountains’ beauty. The area enjoys a relatively mild climate year-round. You’ll still get all four seasons, but shouldn’t experience any extreme hot or cold temperatures. 

Maryville is full of green spaces, parks, and lakes for people who like to enjoy outdoor recreation like hiking, biking, and fishing. The town is also home to the Everett Senior Center, which has a full program of activities for people 50 and older including dances, day trips, fitness classes, and more. There are also plenty of cultural opportunities in this highly walkable town, from its historic buildings, downtown scene, quaint shops, and local restaurants. 

Seniors can also count on quality healthcare at Blount Memorial Hospital, or head into nearby Knoxville (just about 18 miles away) if additional resources are needed. Maryville is also a low-crime area compared to the national average.

Bottom Line

If Maryville, Tennessee isn’t a place you’ve heard of before, do yourself a favor and check it out. It just may be the perfect mix of small-town living, active lifestyle opportunities, and affordability that you might be seeking for your retirement. 

While it’s not the beach town or golfer’s paradise that some retirees prefer, Maryville might be a good match if you’re more of a mountain and lake living type of person. And when you dig into the financials, the combination of no income taxes and lower-than-average housing costs may help you make your final decision.

Methodology

The places chosen for 2024 South’s Best Places To Retire list were selected from all Census Designated Places in southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia). Median household income and monthly housing cost estimates were collected from the 2022 American Community Survey (5-year) for each place in the South. Places for which estimates included large margins of error were removed from the initial list. 

The final list of places was selected by evaluating: 

1. Housing affordability relative to the South (how each place’s monthly housing costs compare with a weighted average for states in the South); 
2. Median income in each place (as a proxy for taxes collected which may be related to community resources; and 
3. Individual reporting on proximity to parks or coastlines, recent changes in the community, and previous reporting by Southern Living highlighting the best places to retire.