Many love Jackson for its pleasant Southern charm, with Old-time Music jams at the Old Country Store, the annual Eagle Festival at Reelfoot Lake, fishing, hiking, boating, woodcarving, the Golden Circle Opry, and Jackson Symphony performances. Halfway between Memphis’s Graceland and Beale Street and Nashville’s honkytonks and fashionable new Gultch district, there’s a lot of fun for independent, active seniors to have. However, there’s a whole other reason to fall in love with Jackson when you’re planning your retirement—Tennessee’s generous tax breaks for seniors.
The Volunteer State’s only real tax downside is the 7% sales tax, however prescription drugs aren’t included, and food is taxed at only 5%. Beyond that, there are many opportunities to save. For example, Tennessee doesn’t tax Social Security income and anyone over 65 with less than $33,000 in annual income doesn’t have to pay a tax on dividends or interest. Wages, salaries, IRA distributions, and pensions are not taxed in Tennessee.
Property tax is also an area where seniors can save big. Seniors, the disabled, and veterans who are income-eligible can be reimbursed for their property taxes. The State also recently voted to do away with inheritance and estate taxes. By 2016 these taxes will be phased out, making now a great time to choose the Volunteer State for your retirement and part of your estate plan.
With so many benefits to Tennessee retirement living, we aren’t surprised that so many seniors choose it. Jackson especially has a lot to offer, so close to two of Tennessee’s biggest and best cities and with its own unique small town character that have me it beloved by many a Jacksonian for years.