Moving from Ohio to Tennessee: Taxes, Cost of Living, and Quality of Life Compared

Ohio is in the middle of a significant migration shift. In the most recent U-Haul Growth Index, Ohio experienced the single largest ranking drop of any state in the country, falling 29 positions in a single year. United Van Lines data shows Ohio as the ninth-highest outbound state, with 56.3% of interstate moves leaving Ohio rather than arriving. The reasons are familiar: taxes, cost of living, weather, and a desire for a different quality of life in retirement.

Tennessee has become one of the most popular destinations for Ohioans making that move. The I-75 corridor connects Cincinnati and Dayton directly to Knoxville in about four hours, making East Tennessee a natural landing spot for Ohio residents who want a milder climate, lower taxes, and access to mountains and lakes without moving halfway across the country. If you are weighing Ohio against Tennessee, here is a detailed comparison of the financial and lifestyle factors that matter most.

How Do Income Taxes Compare Between Ohio and Tennessee?

This is where the comparison gets interesting, because Ohio’s tax picture is more complicated than most people realize.

Ohio’s State Income Tax: Ohio has been cutting its state income tax in recent years. For tax year 2025, the state has three brackets: 0% on income under $26,050, 2.75% on income from $26,050 to $100,000, and 3.125% on income above $100,000. Starting in tax year 2026, Ohio is moving to a flat 2.75% rate on all income above $26,050. On the surface, that looks competitive.

But here is what the headline misses: Ohio’s municipal income tax. Ohio has the most complex local income tax system in the United States. More than 600 Ohio municipalities levy their own income tax, and the rates are not small. Columbus charges 2.5%. Cleveland charges 2.5%. Cincinnati charges 1.8%. Dayton charges 2.25%. Toledo charges 2.25%. On top of that, over 200 Ohio school districts levy a separate income tax. For a resident of Columbus earning $200,000, the combined state and city income tax alone is approximately $7,725 in 2026 (2.75% state on income over $26,050 plus 2.5% city on all earned income). Add a school district tax and the total climbs higher.

Tennessee’s Income Tax: None. Tennessee has no state income tax on wages, salary, pensions, or any other form of personal income. The Hall Tax on interest and dividends was fully repealed in 2021. Tennessee municipalities do not levy income taxes. There is no school district income tax. The combined income tax burden in Tennessee is zero.

For a household earning $200,000 in Columbus, Ohio, the move to Tennessee eliminates roughly $7,700 or more in annual income taxes. At $300,000, the savings approach $11,500. For retirees drawing $100,000 or more in pension and investment income, the savings are similarly meaningful, because Ohio taxes that income while Tennessee does not.

How Do Property Taxes Compare?

Ohio’s effective property tax rate is approximately 1.22% to 1.31% statewide, according to the Tax Foundation and SmartAsset. But like income tax, the rates vary dramatically by county. Cuyahoga County (Cleveland) has an effective rate of 1.80%. Franklin County (Columbus) runs approximately 1.6% to 2.0% depending on the school district. Hamilton County (Cincinnati) is around 1.5%.

Tennessee’s statewide effective rate is approximately 0.56%. In Loudon County, where communities like WindRiver are located on Tellico Lake, the effective rate is approximately 0.44%.

Here is what that means in real dollars:

Over a 10-year period, a homeowner with a $750,000 property saves approximately $94,500 in property taxes by living in Loudon County rather than Franklin County. Combined with the income tax elimination, the total tax savings for an affluent Ohio household can easily exceed $15,000 to $20,000 per year.

Is Tennessee Better Than Ohio for Retirement?

For retirees, the comparison is particularly one-sided.

Social Security: Neither Ohio nor Tennessee taxes Social Security benefits at the state level.

Pensions, 401(k), and IRA Distributions: This is where the gap opens. Ohio taxes pension income, 401(k) distributions, and IRA withdrawals as ordinary income, subject to the state income tax brackets described above. Ohio does offer limited retirement income credits for seniors, but these credits phase out at higher income levels and do not eliminate the tax. A retiree in Columbus drawing $120,000 in combined pension and 401(k) income would owe approximately $2,600 in state income tax plus $3,000 in city income tax, for a combined $5,600 in income taxes on retirement income alone.

Tennessee does not tax any form of retirement income. There is no state income tax, no municipal income tax, and no mechanism to tax pensions, 401(k) distributions, or IRA withdrawals. The savings are not theoretical. They are direct, annual, and permanent.

Estate and Inheritance Tax: Ohio repealed its estate tax in 2013, so neither state currently imposes an estate or inheritance tax. This is one area where Ohio and Tennessee are on equal footing.

What About Sales Tax?

Tennessee does have a higher average combined sales tax rate. Tennessee’s combined state and local rate averages approximately 9.55%, compared to Ohio’s average of roughly 7.28%. This is the one tax category where Ohio comes in lower.

However, Tennessee exempts groceries from the full state sales tax rate (groceries are taxed at a reduced 4% state rate), and most financial analyses show that the savings from eliminating all income taxes and reducing property taxes by 60% to 75% far outweigh the incremental sales tax difference for most households. The net tax position in Tennessee is significantly better for high-income earners and retirees.

How Does Cost of Living Compare Beyond Taxes?

Both Ohio and Tennessee have overall costs of living below the national average, so the comparison is closer on day-to-day expenses than it is on taxes. Housing prices in East Tennessee have risen in recent years but remain competitive with Ohio’s major metro areas.

Where East Tennessee stands out is in the combination of lower taxes, lower insurance costs (no hurricane or flood zone premiums), and access to TVA electricity rates, which are among the lowest in the Southeast. Utilities, groceries, and transportation costs in the Knoxville metro area are generally comparable to or slightly below Ohio’s major metro areas.

The most meaningful difference is in total annual cost of homeownership. When you factor in the elimination of state and city income taxes, a 60% to 75% reduction in property taxes, and comparable or lower everyday expenses, a household relocating from a Columbus or Cincinnati suburb to East Tennessee typically sees a significant net improvement in annual spending, even before accounting for lifestyle upgrades like lakefront access, mountain proximity, and year-round outdoor recreation.

How Does Quality of Life Compare?

Ohio has genuine strengths. The state has strong healthcare systems, good universities, professional sports teams in three cities, and a Midwest culture that many residents value deeply. For people who love Ohio, there is a lot to love.

But for those considering retirement or a lifestyle change, East Tennessee offers several things that Ohio’s major metros cannot match.

Climate: East Tennessee offers four distinct seasons with mild winters. Average January highs in the Knoxville area are in the upper 40s, with minimal snowfall. Ohio’s winters are significantly colder, with average January highs in the low to mid 30s in Columbus and Cleveland, and substantially more snow and ice. For retirees, the difference in outdoor activity days per year is meaningful.

Outdoor Recreation: East Tennessee sits at the doorstep of Great Smoky Mountains National Park, the most visited national park in the country. Tellico Lake offers 16,000 acres of clear, stream-fed water and 373 miles of shoreline for boating, fishing, and kayaking. Communities along the lake provide direct marina access and over 30 miles of hiking trails connected to the East Lakeshore Trail System.

Golf: Tennessee’s mild climate allows for 11 to 12 months of play per year. WindRiver’s championship golf course, designed by Bob Cupp and certified as Tennessee’s first Audubon Signature Sanctuary, offers a par-72 layout with six sets of tees and panoramic views of the lake and mountains. Ohio golf seasons are typically limited to six or seven months.

The I-75 Connection: For Ohio residents, the move to East Tennessee is not a cross-country relocation. I-75 runs directly from Cincinnati and Dayton through Kentucky into Knoxville. The drive is roughly four hours from Cincinnati and five hours from Columbus. Family, friends, and favorite Ohio destinations remain accessible for weekend visits without requiring a flight.

How Is Healthcare Access in East Tennessee?

East Tennessee is served by multiple major hospital systems. The University of Tennessee Medical Center in Knoxville is the region’s only Level I Trauma Center and academic medical center, ranked by U.S. News as the number one hospital in the Knoxville metro. Fort Loudoun Medical Center in Lenoir City, a nationally recognized Top Hospital, is approximately 10 minutes from WindRiver with 24-hour emergency services and over 200 physicians across 29 specialties. Covenant Health, the region’s largest healthcare system, operates nine acute care hospitals in East Tennessee.

McGhee Tyson Airport in Knoxville is approximately 20 miles from Lenoir City and offers nonstop flights to major hubs including Atlanta, Charlotte, Chicago, Dallas, Denver, Houston, and Washington, D.C. For Ohio transplants maintaining connections back home, the airport and the I-75 corridor provide practical, convenient access.

Ohio vs. Tennessee: Side-by-Side Summary

Exploring East Tennessee from WindRiver

For Ohio residents considering the move to Tennessee, WindRiver is a gated lakefront and golf community in Lenoir City on the shores of Tellico Lake, approximately four hours south of Cincinnati on I-75. The community includes a championship golf course designed by Bob Cupp, a full-service marina with covered slips from 30 to 90 feet, Citico’s lakefront restaurant, a pool and sports complex with tennis and pickleball courts, over 30 miles of hiking trails, and a new Clubhouse Village currently under construction.

Homes and homesites are available across several neighborhoods, including lakefront, golffront, lakeview, and interior options. Custom homes are built by a curated list of Premier Builders.

The best way to see whether WindRiver fits is to schedule a Discovery Tour. It is a personal, guided visit that includes a tour of the community, a round on the championship course, dinner at Citico’s, and a look at available properties. To schedule a visit, call (865) 988-1864 or visit windriverliving.com/discovery-tour.