Tennessee Cost of Living Calculator

Understanding the cost of living in Tennessee means looking at taxes, housing, and everyday expenses together. Tennessee has no state income tax, which can significantly boost take-home pay compared to jurisdictions that do. The average property tax rate is 0.56%, and the state sales tax rate is 7.00%.

Cost of living varies dramatically across Tennessee — metropolitan areas, especially state capitals and major employment centers, typically run 10–30% above small-town and rural rates. Housing is by far the largest single component of any cost-of-living index, accounting for 30–35% of total expenditure for most households, followed by transportation (~15%), food (~12%), and healthcare (~8%).

When comparing cities, watch the headline COL index but also check housing-affordability separately: a 110-index city may have an outsized 140 housing index that dominates the average. Tennessee's lack of state income tax is a notable affordability advantage when comparing salaries against income-tax states. Use this calculator to translate a salary in one city into the equivalent purchasing power in another.

Tennessee's cost-of-living index of 91.0 has risen from 87.6 in 2019 — driven by extreme Nashville-area in-migration. Nashville metro median rent is $1,800, while Memphis and Knoxville remain markedly more affordable ($1,300 and $1,400 respectively). Chattanooga and the Tri-Cities (Johnson City, Kingsport, Bristol) are very affordable. TN has no state income tax — making take-home wages highly competitive, particularly for retirees and remote workers. Property taxes are very low (~0.55% effective, among the country's lowest). Sales tax of 7% state + local up to 9.75% is partially offsetting.