Military retirement and state taxes
Tennessee has no state income tax on wages, so military retirement, VA disability pay and wages aren't taxed by the state.
Fort Campbell · Naval Support Activity Mid-South
VA loans in Tennessee
Can you use a VA loan in Tennessee?
Yes. You can use a VA loan anywhere in Tennessee, from Clarksville to Memphis. Tennessee has no state income tax, so your military retirement isn't taxed by the state. We lend in Tennessee and help military families buy near every major base in the state.
Good to know
What's different about buying in Tennessee
Property tax help for disabled Veterans
Tennessee's tax relief program pays the property tax on the first $175,000 of your home's value if you're rated 100% permanent and total. Apply through your local tax office after you move in.
Fort Campbell straddles two states
Fort Campbell sits on the Tennessee-Kentucky line. Tennessee has no state income tax on wages, and Kentucky does, so living on the Clarksville side can mean more take-home pay.
Tax rules shown are general and current as of October 2026. Confirm the details with your county or the state before you rely on them.
PCSing to Tennessee?
Bases I help families buy near
Wherever your orders say, we lend there. Here's where families usually look.
- Fort CampbellClarksville, Oak Grove (KY)
Buying near Fort Campbell → - Naval Support Activity Mid-SouthMillington, Memphis
Buying near Naval Support Activity Mid-South → - Arnold Air Force BaseTullahoma, Manchester
Tennessee questions
Straight answers
Does Tennessee tax military retirement pay?
Tennessee has no state income tax on wages, so military retirement, VA disability pay and wages aren't taxed by the state. VA disability compensation isn't taxed.
What property tax breaks do disabled Veterans get in Tennessee?
Tennessee's tax relief program pays the property tax on the first $175,000 of your home's value if you're rated 100% permanent and total. Rules and amounts can change, so confirm with your local tax office.
Can I use a VA loan anywhere in Tennessee?
Yes. VA loans work in cities, suburbs and rural areas across Tennessee, as long as the home will be your main residence and meets VA property standards. We lend statewide, so we can help wherever you're buying.
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Buying in Tennessee? Let's talk.
One person on our team will confirm you qualify, show you what you can afford and walk you through every step. No cost, no pressure.