Retirement Cost in Knoxville, TN: 2026 Budget Guide
A comfortable retirement in Knoxville costs approximately $44,564/year — 14% below the national average of $52,000. Here's the full breakdown.
$44,564
Annual retirement cost
$3,714
Per month
$1,114,100
Nest egg needed (25× rule)
Direct Answer
Retiring in Knoxville, TN costs about $44,564 per year, or $3,714 per month. That is 14% below the national retirement budget benchmark, with an estimated $1,114,100 nest egg using the 4% rule.
Annual budget
$44,564
Range: $28,967-$64,618
Monthly budget
$3,714
Housing, healthcare, food, transport, utilities, and lifestyle
Portfolio target
$1,114,100
25x annual spending, before personalized tax planning
Tax note
Tax-friendly
Tennessee has no state income tax
Knoxville is a budget-friendly retirement destination. Tennessee has no state income tax, which can save retirees thousands annually on pension and 401(k) withdrawals.
Annual Retirement Budget in Knoxville
Based on BLS Consumer Expenditure Survey (65+ households), adjusted for Knoxville's cost index (87). Range: $28,967–$64,618.
How Much Do You Need to Retire in Knoxville?
Standard
$1,114,100
4% Rule (25×)
Most common retirement planning benchmark
Conservative
$1,336,920
3.3% Rule (30×)
Conservative approach for longer retirements
After SS
$23,564
Savings needed/year
After avg Social Security (~$21,000/yr)
How Knoxville Compares
Knoxville Annual Cost
$44,564
National Average
$52,000
Difference
$-7,436/yr
14% more affordable
Retirement Planning Tips for Knoxville
✓Tennessee has no state income tax — a significant benefit for retirees drawing from 401(k)s, IRAs, or pensions.
✓Housing in Knoxville accounts for roughly $15,597/year of retirement costs — consider whether renting or owning makes more sense given your timeline.
✓Healthcare costs here run approximately $8,022/year. Compare Medicare Advantage plans by ZIP code — coverage and premiums vary significantly.
✓The estimated nest egg needed to retire in Knoxville is $1,114,100 using the 4% withdrawal rule.
✓Knoxville is a relatively affordable retirement destination, letting your savings stretch further.
Retirement Decision Checklist
Compare housing at $1,300/month against your rent, mortgage, HOA, and property tax plan.
Budget healthcare at about $669/month before Medicare supplement, dental, and long-term care choices.
Stress test the plan with the conservative $1,336,920 portfolio target if you want a lower withdrawal rate.
Use $23,564/year as the rough portfolio-funded gap after average Social Security assumptions.
More for Knoxville
Frequently Asked Questions
How much does it cost to retire in Knoxville?
A comfortable retirement in Knoxville costs approximately $44,564 per year ($3,714/month). This includes $15,597 for housing, $8,022 for healthcare, and $6,685 for transportation. Actual costs range from $28,967 to $64,618 depending on lifestyle.
How much money do I need to retire in Knoxville?
Using the 4% withdrawal rule, you need approximately $1,114,100 in savings to retire in Knoxville. For a more conservative 3.3% withdrawal rate (30× rule), the target is $1,336,920. If you expect average Social Security benefits (~$21,000/year), your portfolio needs to cover the remaining $23,564/year.
Is Knoxville a good place to retire?
Yes — Knoxville is a budget-friendly retirement destination at $44,564/year, 14% below the national average. Your retirement savings will go further here. The absence of state income tax is a notable advantage for retirees in Tennessee.
What is the biggest retirement expense in Knoxville?
Housing is the largest retirement expense in Knoxville, accounting for approximately 35% of the budget at $15,597/year ($1,300/month). Healthcare is the second-largest at $8,022/year, followed by transportation at $6,685/year.