2. Knoxville, Tennessee

Tennessee features some of the most retiree-friendly tax laws in the nation, including zero state income tax. Your Social Security checks, pension payouts, and IRA withdrawals are completely safe from state-level taxation.

Knoxville takes this financial advantage further with a cost of living that runs 8.2 percent below the national average. You can find a median home priced around $360,000, significantly lower than the $426,000 median found in nearby Nashville.

Tucked near the foothills of the Great Smoky Mountains, Knoxville gives you spectacular outdoor recreation and a vibrant, walkable downtown area. The presence of the University of Tennessee provides residents with continuous access to cultural events, collegiate sports, and lifelong learning programs.

Knoxville proves that you do not have to isolate yourself in a rural town to find affordable living.