Tennessee eliminated its Hall Tax in 2021. Zero income tax on IRA withdrawals, pension income, Social Security, dividends, and capital gains. Florida and Texas have never had a broad income tax. All three states are identical on this dimension. Any comparison that leads with income tax as a differentiator is wasting your time — the real question is what you pay every year on the house.
| Factor | Tennessee (Wilson Co.) | Florida (St. Johns Co.) | Texas (Williamson Co.) |
|---|---|---|---|
| Effective property tax rate | ~0.55–0.65% | ~0.55–0.70% | ~1.8–2.2% |
| Annual tax — $500K home | ~$2,750–$3,250 | ~$2,750–$3,500 + CDD | ~$9,000–$11,000 |
| CDD or MUD fees | None — TN has no CDD structure | $1,500–$3,500/yr (Nocatee) | MUD fees vary — $500–$2,000/yr |
| All-in annual real estate tax cost | ~$2,750–$3,250 | ~$4,250–$7,000 | ~$9,500–$13,000 |
| 65+ tax protection | Freeze — bill locked completely | Save Our Homes — 3%/yr cap | School district freeze only — partial |
| Homeowners insurance | ~$1,400–$3,000/yr | ~$3,500–$8,000+/yr (coastal) | ~$2,500–$5,000/yr |
This is what the choice actually costs over a retirement horizon. Assumes 5% annual appreciation in assessed values in all three markets and that the Tennessee buyer qualifies for and maintains the property tax freeze.
Florida's Save Our Homes cap is a genuine benefit that narrows the gap over time for buyers who hold long enough. A Florida buyer who purchased in 2000 and has had Save Our Homes applied for 25+ years may have an assessed value significantly below market — creating effective tax rates well below the nominal county rate.
The catch: that benefit resets at purchase. Every new Florida buyer starts at full market value assessment with no benefit until they apply for homestead and the cap begins accruing. The Tennessee freeze, by contrast, locks the bill in the first year you apply. You do not wait 20 years for the benefit — you get it immediately.
Florida's other disadvantage in this comparison is coastal insurance. Middle Tennessee homeowners insurance runs $1,400–$3,000 per year. Florida Gulf Coast and Atlantic Coast insurance for a comparable home now runs $3,500–$8,000+ and is rising. For buyers choosing between a Nashville community and a Florida coastal community, the insurance gap alone often exceeds $3,000–$5,000 per year.
Your household income is below the county freeze threshold ($63,470 in Wilson County). You want zero income tax with no calculation required. You are choosing between Florida coastal and Tennessee inland — the insurance differential alone justifies the move financially. You are comparing Nashville to Austin or San Antonio — the property tax gap is decisive.
Ocean access is non-negotiable — Nashville cannot provide it. You want the largest selection of established 55+ communities with deep social infrastructure. You have a specific Florida community in mind and are comfortable with the insurance and CDD cost structure.
You have family in the Austin, San Antonio, or Houston area and proximity outweighs the property tax cost. You specifically want the Hill Country lifestyle or Texas cultural identity. You are comparing a Texas community on the merits of the community itself rather than the state tax environment — the financial case for Texas over Tennessee does not exist for most buyers.
Tennessee wins on total annual cost in almost every comparison involving Texas. Tennessee wins on total annual cost versus Florida coastal in every comparison once you include insurance. The only Florida scenario where the numbers tighten is a buyer holding for 20+ years in an inland Florida community with low insurance and no CDD fees — a rare combination. For the average Northern buyer choosing a primary retirement state, Tennessee is the most financially efficient option in this comparison.
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