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Memphis, Tennessee Retirement Guide
Retirement Score
Memphis, Tennessee at a Glance
- Median Home Price
- $173,400
- State Income Tax
- No state income tax; Social Security and pension income fully exempt.
- Avg January Low
- 34.5°F
- Cost of Living Index
- 91.8 (US avg = 100)
- RetireCityIQ Score
- 56 / 100
Overview
"Memphis, Tennessee is one of the most affordable major US retirement metros, with median home prices around $195,000 and a cost of living roughly 15% below the national average. Tennessee has no state income tax. Methodist Le Bonheur Healthcare and Baptist Memorial anchor local care. The metro is known for its music heritage, Mississippi River-front, and very low housing costs, balanced against higher metro crime than Tennessee's smaller cities."
Memphis sits at the convergence of the Mississippi, Wolf, and Loosahatchie rivers in the southwestern corner of Tennessee, at the edge of the Mississippi Delta. The city's identity is built around music heritage (Beale Street, Sun Studio, Stax, Graceland), Southern food, and a deep African-American cultural tradition. The metro is roughly 14% age 65+, with stronger retiree concentrations in the eastern suburbs (Germantown, Collierville, Cordova).
The financial picture is exceptional for retirees: Tennessee's no-state-income-tax status, combined with median home prices around $195,000 and cost of living 15% below the national average, produces some of the strongest after-tax math in the country. Property tax rates are around 0.8%, slightly higher than other Tennessee metros.
Healthcare is anchored by Methodist Le Bonheur Healthcare and Baptist Memorial Health Care. The University of Tennessee Health Science Center provides academic backing. Specialist depth is strong, and Medicare Advantage plan options are deep.
The structural caveat is metro crime — Memphis ranks among the higher-crime US metros, though specific suburbs (Germantown, Collierville) consistently score among the safest in the country. Retirees should choose neighborhoods carefully. The climate is hot and humid in summer (July high ~92°F) and mild in winter (January low ~32°F). Memphis is best for budget-conscious retirees who specifically value music and cultural heritage and are comfortable choosing a safe-suburb neighborhood within a higher-crime metro.
Cost of Living
Affordability Metrics
Memphis's cost of living is 8.200000000000003% below the national average. For a detailed breakdown of expenses, see our cost of living methodology.
Housing
Real Estate & Housing
10-Year Housing Stress Test (Estimate)
Estimate monthly homeowner carrying cost in Memphis using median home price and adjustable assumptions. Stress case applies +10% property tax, +20% insurance, +10% maintenance.
Estimated monthly carrying cost
$376
Stress-case monthly carrying cost
$422
Median home price used: $173,400
Median rent reference: $1,098 / month
Estimate includes property tax, insurance, maintenance reserve, and HOA. It excludes mortgage, utilities, and one-time transaction costs.
Budget validation
Calculate if your savings last in this city
Use RetireFree to test whether your portfolio can support retirement in Memphis, Tennessee after local housing costs, taxes, healthcare, inflation, and withdrawal timing.
Open the RetireFree Calculator →Healthcare
Access & Quality
Quality of care and specialist availability are critical for a successful retirement. Memphis scores 20.5 out of 100 for healthcare access.
Care planning link
Find local assisted living in Memphis
If your city research includes aging parents, future care needs, or a move closer to family, compare local care options alongside housing and healthcare access.
Assisted living in Memphis →Taxes
State Tax Climate
Tennessee has a tax environment that is highly favorable for retirees.Read more in our detailed Tennessee tax guide.
Climate
Weather & Environment
With 294 sunny days a year and an average January low of 34.5°F, Memphis offers a traditional winter climate.
Safety & Walkability
Community Safety
Walkability
Demographics
Population Profile
Diversity Breakdown
Frequently asked questions about retiring in Memphis
Is Memphis, Tennessee a good place to retire in 2026?▾
Memphis, Tennessee is one of the most affordable major US retirement metros, with median home prices around $195,000 and a cost of living roughly 15% below the national average. Tennessee has no state income tax. Methodist Le Bonheur Healthcare and Baptist Memorial anchor local care. The metro is known for its music heritage, Mississippi River-front, and very low housing costs, balanced against higher metro crime than Tennessee's smaller cities.
What is the cost of living in Memphis, Tennessee for retirees?▾
The cost-of-living index is 92, roughly 8% below the national average of 100. Median home price is around $173,400.
Does Tennessee tax Social Security or retirement income?▾
For Tennessee residents: No state income tax; Social Security and pension income fully exempt.
What is the climate like in Memphis, Tennessee?▾
Memphis, Tennessee has January average low around 35°F, July average high around 93°F. Climate normals are based on 30-year averages from NOAA's National Centers for Environmental Information.
What is healthcare access like in Memphis, Tennessee?▾
Memphis scores 21/100 on the RetireCityIQ healthcare access index — a limited score. The index combines CMS hospital quality ratings, Medicare Advantage plan availability, and hospitals per 100,000 residents (KFF + CMS data).
How much does it cost to retire in Memphis, Tennessee?▾
For a retired couple in a paid-off home, total monthly costs in Memphis run roughly $3,213 based on the cost-of-living index of 92. This includes property taxes, utilities, healthcare premiums, groceries, transportation, and discretionary spending. Renters add roughly $1,200–$1,800/month for a 2-bedroom.
Local Professionals
Financial Advisors
HIGHLAND CAPITAL MANAGEMENT, LLC
SOUTHEASTERN ASSET MANAGEMENT INC.
WILLIAM HOWARD & CO. FINANCIAL ADVISORS, INC.
+92 more financial advisors available