Tennessee is becoming a popular destination for retirees due to its tax advantages, low living costs, and access to health care. This shift has accelerated since the state eliminated its last remaining tax on investment income. The state offers zero income tax for retirees, including Social Security and retirement distributions. There are also no tax on investments or capital gains, and no additional taxes on wealth transfers. The lack of estate tax is another significant advantage, as Tennessee does not impose an estate tax or an inheritance tax. Despite this, there are still relatively affordable housing across much of the state. Pension, 401(k) withdrawals, and IRA distributions are also included in Tennessee. Retirees should be aware of these tax advantages.