Moving from Maine to Nashville: How One Retired Couple Estimated $50,000 in Annual Savings

A Franklin new-construction purchase shows why retirees should compare taxes, lifestyle priorities and representation before relocating.

I recently represented a retired couple from Maine who purchased a $1.4 million new-construction home in Franklin, just south of Nashville. Before making the move, they compared several states and looked carefully at how each option could affect their retirement budget. Based on their own income, property and tax circumstances, they estimated that moving to Tennessee could save them about $50,000 a year.

That figure is their estimate, not a promise for anyone else. Still, their process offers a useful example for people considering a move to the Nashville area: compare the complete financial picture, weigh the personal trade-offs and have independent representation when purchasing new construction.

Why Tennessee Rose to the Top

Taxes were an important part of this couple’s decision. Maine’s 2026 individual income-tax schedule uses graduated rates of 5.8%, 6.75% and 7.15%. For higher taxable incomes, Maine also applies a 2% surcharge above specified thresholds beginning in 2026.

Retirement income requires a more detailed calculation. Maine provides a pension-income deduction, but the amount and availability depend on the type of income, Social Security and railroad retirement benefits, filing status and adjusted gross income. Maine’s 2026 estimated-tax materials list a maximum pension-income deduction of $49,824, subject to the applicable rules and phaseouts.

Tennessee does not impose a state individual income tax on earned income, and its former Hall income tax on interest and dividend income was fully repealed beginning January 1, 2021. Those differences can be meaningful, but they do not determine every household’s result. Federal taxes, the character of retirement income, residency rules, deductions and other details still matter.

My clients also found that their property-tax bill would be lower after the move. Property taxes vary by county, city, assessed value, exemptions and the property itself, so another buyer should not assume the same outcome. The right comparison uses actual estimates for the homes and jurisdictions under consideration.

A Financial Decision Still Has Personal Trade-Offs

Changing states can change a household’s financial picture, but money is only one part of relocation. For this couple, the move placed more distance between them and their young grandchildren. They understood that trade-off and chose Tennessee with their eyes open.

That is how I want clients to approach a major move. A thoughtful relocation plan should include family connections, travel needs, health care, climate, daily routines and the type of community you want, along with taxes and housing costs. The strongest decision is one that still makes sense after both the benefits and compromises are on the table.

Why Buyer Representation Mattered on New Construction

The home they selected was new construction in Franklin. Buyers sometimes assume that purchasing from a builder is simpler than buying a resale property or that the builder’s sales representative can advise everyone involved. The builder’s representative works for the builder. My clients wanted their own advocate to help them evaluate the transaction, keep track of deadlines and ask questions from the buyer’s point of view.

They also hired an independent third-party inspector to examine the home before closing. The inspection findings became part of a punch list, and the identified items were addressed before they signed the final documents.

New construction does not eliminate the need for due diligence. Buyers should understand the contract, allowances, warranty process, inspection options, completion standards and walk-through procedures. The available rights and deadlines depend on the contract, so buyers should involve the appropriate real-estate, inspection, tax and legal professionals for their situation.

Run Your Own Numbers Before You Move

A $50,000 annual difference can sound compelling, but one household’s estimate should never be treated as a forecast for another. Start by listing every category that could change: state income tax, retirement-income treatment, property tax, insurance, utilities, health care, travel and the cost of the home itself. Then ask a qualified tax adviser to compare the states using your actual income sources and filing situation.

If Middle Tennessee remains a strong fit after that review, the next step is to learn how its communities and housing options compare. Download my free Nashville Relocation Guide or book a free consultation. I would be glad to help you explore Brentwood, Franklin, Fairview and the greater Nashville area with a plan built around your priorities.

This article provides general information and is not tax, legal or financial advice. Consult qualified professionals about your circumstances.

Sources

• Maine Revenue Services: 2026 Individual Income Tax Rate Schedules, revised May 20, 2026; accessed October 16, 2026.

• Maine Revenue Services: 2026 Estimated Tax Worksheet, revised July 2026; accessed October 16, 2026.

• Maine Revenue Services: Individual Income Tax FAQ, revised April 13, 2026; accessed October 16, 2026.

• Tennessee Department of Revenue: Income Tax Withholding, accessed October 16, 2026.

• Tennessee Department of Revenue: Hall Income Tax Repealed, accessed October 16, 2026.

Jack Lerond · TN Lic. #360796 · eXp Realty · (888) 519-5113 ext. 1427 · 3401 Mallory Lane, Suite 100, Franklin, TN 37067 · Equal Housing Opportunity