Tennessee
#1
retiree-friendly rank
- Social Security
- No state income tax
- Retirement income
- No state income tax
- Death tax
- None
Prop 0.52% · Sales 9.61%
2026Tennessee vs New Jersey Retirement Taxes
Tennessee ranks more retiree-friendly than New Jersey on Social Security, retirement-income, and estate/inheritance treatment. Compare Social Security, pensions and IRA withdrawals, estate/inheritance taxes, and supporting property and sales rates.
By Sammy S. · Founder · AuthorUpdated for 2026
More retiree-friendly on this model
Tennessee ranks ahead
Tennessee ranks #1 vs #19 for New Jersey. Score gap: 2.25 (lower score = more friendly).
Side-by-side retirement tax scoreboard
New Jersey
#19
retiree-friendly rank
- Social Security
- SS exempt from state tax
- Retirement income
- Partial retirement exclusions
- Death tax
- Inheritance tax
Prop 1.88% · Sales 6.6%
Retirement tax metric comparison
Rankings emphasize income and death taxes. Property and sales rates matter for cash flow but do not drive the retiree-friendliness score.
| Metric | Tennessee | New Jersey |
|---|---|---|
| Retiree-friendly rank | #1 | #19 |
| Social Security | No state income tax | SS exempt from state tax |
| Retirement income | No state income tax | Partial retirement exclusions |
| Estate / inheritance | None | Inheritance tax |
| Estate exemption | — | — |
| Estate top rate | — | — |
| Effective property tax | 0.52% | 1.88% |
| Combined sales tax | 9.61% | 6.6% |
State rules explained
Why Tennessee and New Jersey differ for retirees
The gap is rarely one rule. Social Security thresholds, pension exclusions, and estate taxes can each flip which state looks better for a given household.
Tennessee rules
No state wage income tax on retirement income; no state estate or inheritance tax.
Tennessee has no broad state income tax, so Social Security is not taxed at the state level. Federal tax rules still apply.
Tennessee does not levy a broad state income tax on pensions or retirement-account withdrawals.
- Property
- 0.52%
- Sales
- 9.61%
New Jersey rules
Exempts Social Security with retirement exclusions; levies an inheritance tax (no separate estate tax).
New Jersey does not tax Social Security benefits at the state level. Federal tax rules still apply.
Social Security exempt. Retirement-income exclusions/credits apply under New Jersey rules—confirm Form NJ-1040 instructions.
New Jersey inheritance tax applies to certain non-exempt beneficiaries.
- Property
- 1.88%
- Sales
- 6.6%
Income mix matters
A household living mostly on Social Security may prefer different rules than one drawing large IRA RMDs. Compare Tennessee and New Jersey against your actual income mix.
Death taxes are separate
Federal estate tax can still apply above about $15M. State estate or inheritance tax is an extra layer in some states.
Property & sales still count
Tennessee property 0.52% vs New Jersey 1.88%; sales 9.61% vs 6.6%.
Compare a different pair
Compare any two states
Social Security, pensions/IRA, estate taxes, and supporting property/sales rates.
Related tools
Estimate federal retirement figures
Use Social Security and RMD tools, then apply each state's rules from this comparison.
Tennessee vs New Jersey retirement tax FAQs
Tennessee ranks more retiree-friendly on this site's Social Security, retirement-income, and estate/inheritance score. Also compare property tax (0.52% vs 1.88%) and combined sales tax (9.61% vs 6.6%).
Tennessee: no state income tax. New Jersey: ss exempt from state tax. Federal Social Security tax rules apply in both states.
Tennessee: no state income tax. New Jersey: partial retirement exclusions.
Tennessee: no estate tax. New Jersey: no estate tax; inheritance tax applies.
Not always. Property taxes, sales taxes, and estate taxes can offset income-tax savings. Compare total household exposure, not income tax alone.
Federal income tax, Medicare IRMAA surcharges, and the federal estate tax framework do not depend on the state of residence in the same way state income tax does. State rules sit on top of federal rules.
Educational comparison only. Confirm current state return instructions and estate planning rules before relocating.