Salary Needed to Live in Memphis as a Family
A family of four (2 adults, 2 children) needs approximately $106,840/year to live comfortably in Memphis, TN, including 15% savings.
Direct Answer
A family with kids needs about $106,840/year to live comfortably in Memphis, TN. The bare-minimum salary is $85,472/year, but the comfortable figure includes a 15% savings target and a monthly after-tax budget of $6,520.
The minimum scenario leaves about $5,342/mo after tax and no planned savings. The comfortable scenario uses $8,903/mo gross pay to cover expenses, taxes, and a savings buffer.
Hybrid salary estimateBLS, HUD, ACS inputsLast verified May 2026
Comfortable Salary
$106,840
with 15% savings
Bare Minimum
$85,472
$7,123/mo gross, no savings buffer
Monthly Expenses
$5,342
25% below national avg
Detailed Monthly Budget for a Family in Memphis
| Expense | Memphis | Nat'l Avg | Diff |
|---|---|---|---|
| 3BR Apartment/House Rent | $1,535 | $2,509 | -39% |
| Groceries | $456 | $528 | -14% |
| Utilities | $300 | $337 | -11% |
| Transportation | $424 | $526 | -19% |
| Car Insurance | $149 | $223 | -33% |
| Health Insurance | $567 | $672 | -16% |
| Childcare/After-school | $984 | $1,200 | -18% |
| Internet + Phones | $148 | $180 | -18% |
| Children Activities | $205 | $250 | -18% |
| Dining Out | $287 | $350 | -18% |
| School Supplies & Clothing | $164 | $200 | -18% |
| Healthcare Co-pays | $123 | $150 | -18% |
| Total Monthly | $5,342 | $7,125 | -25% |
How We Calculated the Salary
Monthly expenses:$5,342
Target savings (15%):$1,178/mo
Monthly after-tax needed:$6,520
Effective tax rate:25%
Gross annual salary needed:$106,840
What Drives the Salary Number?
Housing
$1,535
3BR Apartment/House rent is 29% of this monthly budget.
Taxes
25%
Estimated federal plus TN state tax reserve used to convert take-home needs into gross salary.
Savings target
15%
$1,178/mo is reserved for savings so the salary is not just break-even.
Local index
82/100
Memphis is below the national baseline; the model adjusts baseline spending by local rent and cost data.
Compare Salary Needed in Nearby south Cities
Salary Planning Checklist
- Keep 3br apartment/house housing near $1,535/mo or adjust the salary target upward.
- Budget $1,911/mo for persona-specific costs such as Childcare/After-school and Internet + Phones.
- Use $85,472/year as the survival floor and $106,840/year as the healthier negotiation target.
Other Household Types in Memphis
Related Pages
FAQ
What salary does a family with kids need in Memphis?
A family with kids needs approximately $106,840/year ($8,903/month gross) to live comfortably in Memphis with a 15% savings rate.
How much is rent for a family with kids in Memphis?
A 3br apartment/house in Memphis costs approximately $1,535/month, which is the largest single expense at 29% of the total budget.
Is Memphis affordable for a family with kids?
Yes, Memphis is 25% more affordable than the national average for a family with kids.