Cost of Living in Tennessee (TN)
Compare costs across 6 Tennessee cities. From home services to salaries, see how TN stacks up against the national average.
6
Cities
90
Avg Cost Index
$49K
Avg Income
Direct Answer
Tennessee's average cost index is 90, which is below the national baseline of 100. Memphis is the most affordable tracked city in TN at index 82, while Nashville is the most expensive at index 104.
The gap between the cheapest and most expensive tracked cities is 22 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
Tennessee Highlights: Most affordable city: Memphis (index 82). Most expensive: Nashville (index 104). The gap between cheapest and most expensive is 22 index points.
What Drives the Statewide Cost Picture?
Average index
90/100
Tennessee is below the national cost baseline across tracked cities.
Cheapest city
Memphis
Memphis has a cost index of 82.
Most expensive
Nashville
Nashville has a cost index of 104.
Income average
$49K
Average median household income across 6 tracked TN cities.
Cheapest and Most Expensive Cities in Tennessee
| City | Population | Cost Index | Median Income | Tier |
|---|---|---|---|---|
| Nashville | 684K | 104 | $60K | large |
| Memphis | 633K | 82 | $41K | large |
| Knoxville | 191K | 87 | $41K | mid |
| Chattanooga | 181K | 86 | $44K | mid |
| Clarksville | 167K | 88 | $53K | mid |
| Murfreesboro | 153K | 92 | $56K | mid |
Tennessee State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in Tennessee.
State Income Tax
0%
No income tax
Combined Sales Tax
9.55%
7% state + 2.55% avg local
Property Tax (Effective)
0.66%
~$1,980/yr on a $300K home
Tax friendly: Tennessee has no state income tax - workers keep more of their paycheck. No state estate tax. Estimate your take-home pay
State Planning Checklist
- Start with Memphis if the priority is lowest recurring cost inside Tennessee.
- Compare Nashville against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.