Cost of Living in Tennessee

Housing, Taxes, Utilities, Groceries & Real-World Expenses

Tennessee is widely recognized as one of the most affordable states to live in the U.S. With no state income tax, reasonable housing prices, and below-average living expenses, Tennessee continues to attract people relocating from higher-cost states like California, New York, Illinois, Florida, and Texas.

This guide breaks down the true cost of living in Tennessee, including housing, taxes, utilities, groceries, transportation, and regional differences.

Is Tennessee Affordable?

Yes — Tennessee consistently ranks below the national average for overall cost of living.

U.S. Average Cost of Living Index: 100
Tennessee Cost of Living Index: ~89–91

That means most everyday expenses in Tennessee cost 9–11% less than the national average.

Housing Costs in Tennessee

Housing is the biggest reason people move to Tennessee. Average Home Prices While prices vary by city, Tennessee remains affordable compared to most states.

Rent Costs

Taxes in Tennessee

Tennessee is one of the most tax-friendly states in the country. No State Income Tax

Tennessee does not tax earned income Huge benefit for:

Remote workers
Business owners
- Retirees
- High-income earners

Property Taxes

Property taxes are well below the national average
Rates vary by county but remain affordable statewide

Sales Tax

State sales tax: 7%
Local taxes may apply (usually 2–2.75%)
Groceries are taxed at a lower rate than non-food items

Utilities & Monthly Bills

Overall, utilities in Tennessee are considered it right now.affordable, especially when compared to high-cost states like California, New York, or Florida.

Factors that influence monthly costs include:

Tennessee’s mild climate helps keep utility bills relatively stable throughout the year.

Healthcare & Transportation Costs

Transportation Costs

Transportation in Tennessee is generally affordable due to:

Lower gas prices than the national average
Minimal toll roads across most of the state
Shorter commute times outside major cities
Lower vehicle registration and ownership costs
Limited reliance on public transportation, reducing transit expenses
For most residents, owning a vehicle is essential, but overall
transportation expenses remain

For most residents, owning a vehicle is essential, but overall transportation expenses remain manageable compared to many other states.

Healthcare Costs

Healthcare costs in Tennessee are close to or slightly below national averages.

Strong healthcare systems across the state
Major hubs include Nashville, Knoxville, Chattanooga, Memphis, and Johnson City
Many residents relocate specifically for healthcare employment and access

Cost of Renting by Region

Average Rent Across East, Middle, and West Tennessee

Average Rent by East Tennessee City

Knoxville

Cities: Knoxville, Johnson City, Kingsport, Bristol, Chattanooga

Johnson City

Johnson City remains one of the most affordable mid-size cities in the region.

Kingsport

Kingsport offers lower rents and is popular with families and long-term renters.

Bristol

Bristol provides small-town affordability with easy access to surrounding cities.

Average Rent by Middle Tennessee City

Nashville

Nashville has the highest rental prices in Tennessee, driven by job growth, entertainment, and population demand.

Franklin

Franklin offers upscale suburban living and top-rated schools, making it popular with families and professionals.

Murfreesboro

Murfreesboro provides more affordable options while remaining close to Nashville.

Clarksville

Clarksville is one of the most affordable rental markets in Middle Tennessee and popular with military families.

Average Rent by West Tennessee City

Memphis

Memphis is the largest rental market in West Tennessee and offers some of the most affordable urban rents in the state.

Memphis attracts renters looking for culture, music, healthcare jobs, and logistics-related employment.

Jackson

Jackson provides small-city affordability with access to regional employers and services.

Jackson is popular with families, healthcare workers, and renters seeking lower costs.

Why People Move to Tennessee for Affordability

People relocating to Tennessee often cite:

No state income tax
Affordable homeownership
Lower overall monthly expenses
Strong job opportunities
High quality of life

For many families, moving to Tennessee means owning a home sooner, reducing financial stress, and building long-term stability.

Is Tennessee a Good Place to Live on a Budget?

Yes — Tennessee offers one of the best cost-of-living-to-quality-of-life ratios in the U.S. It’s especially attractive for:

First-time homebuyers
Retirees
Remote workers
Families looking to stretch their budget
Investors seeking affordable real estate

Find Homes & Realtors in Tennessee

Whether you’re just researching or ready to move, WhyTennessee.com helps you:

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What You Need to Know:

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