What Is The Cost Of Living In Tennessee? 

cost of living in tennessee

Something great about Tennessee is that here the cost of living in Tennessee is low and the quality of life is high. How much do you need to make to live comfortably in Tennessee? Honestly saying, there is no limit to earning because as your income increases, your comfort level also increases. Therefore, it is very hard to answer such a question. But, by reading this article you can guess the answer. So, back to the point, Tennessee is a state located in the Southeastern region of the United States. Let’s know the cost of living in Tennessee.  

What Is The Cost Of Living In Tennessee? 

The cost of living in Tennessee is 87.6 as compared to the national cost of living. It is 12.4% lower than the US’s national cost of living of 100. The average cost of living in Tennessee is low as compared to the other states in America. Here is a table showing the cost of living in Tennessee per month by comparing it with the national cost of living. After seeing a table you can say, only health care cost is more than the national average of 100, and the rest of the costs are lower than the national average cost. 

Cost Of Living For TennesseeUSA 
Housing 71.2100
Grocery 95.4100
Transportation 90.2100
Utilities 96.7100
Health 101.9100
Miscellaneous 95100
Median Home Cost $231,600$ 291,700
Overall 87.6100

Home Rent 

In the state of Tennessee, the house rent shares a bulky amount in the cost of living. The average price to buy a home is roughly around $170,800. That is well below the United States average of $334,000 for new homes and $260,000 for an old home. If you can not afford to buy a house, then you can take it home on rent. Here is the rent for one and two-bedroom houses in the different cities in Tennessee. 

City Approx 1 Bedroom Rent Approx 2 Bedroom Rent 
Nashville $950$1721
Memphis $720$1380
Chattanooga $900$1175
Knoxville $1750$2800

Food Cost 

If you are a food lover, then you can move to Tennessee because here the food cost is well below the national average cost. As per MIT’s Living Wage Calculator, a single person in the state of Tennessee spends an average of $29,990 annually on food. Here is a table that will give you the approximate cost of dinner for two people in the different regions of Tennessee. 

City Approx Dinner Cost For 2 
Nashville $180
Memphis $78
Chattanooga $100
Knoxville $90

Travel Cost 

In the state of Tennessee, the average car insurance premium is around $1229, about $280 less than the national average for auto insurance. Also, the average cost of fuel is affordable. Therefore, the overall cost of travel in Tennessee is lower. 

Other Expenses 

Here are the Other expenses that you must keep in mind while you are planning to shift in Tennessee.

Health Care 

Unfortunately, the health care system is expensive in the state of Tennessee. According to the 2021 Cost of Living Index, the aggregated score for healthcare coverage in the state is 1.9 points higher than the national average of 100. 

Utility Bills 

If you do the cost of living comparison as the cost of living in Tennessee vs Texas, you will find Tennessee is much cheaper than Texas. The cost of a utility in Tennessee is 97.7 which is almost equal to the national average cost. So, you can say, the cost of a utility in Tennessee is expensive. The average monthly energy bill in Tennessee is $123.30. 

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Internet Bills 

In the state of Tennessee, the cost of the Internet is not fixed. So, the cost of one months plan of AT&T’s internet is $39.99 and that of Xfinity is $34.99 for a month. 


You can join a gym or a fitness club as per your budget. Also, you can do your daily exercise at home. So, the average personal training cost in the city of Nashville is $20 to $124 per person per month. 


In the state of Tennessee, you can do lots of things for entertainment. You can visit the Smokies, Graceland, Hello, Dollywood, The Titanic Museum, and many more. The cost of entertainment is affordable here. 


You need to pay taxes if you consume the service in the state of Tennessee. In 2021, the state of Tennessee became the 8th state among the 50 states in America to eliminate state income Tax. so, there are only two taxes, one is federal income tax and the other is sales tax. The sales tax rate is 7%.  

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Is It Expensive To Live In Tennessee?

Tennessee’s quality of life is high, and its cost of living is low. Based on 2020 annual averages, Tennessee has the 8th lowest cost of living in the nation at 10.3% below the national average.

How Much Do You Need To Live Comfortably In Tennessee?

That said, the median income for Tennessee residents is $37,488, which is well below the national average. One estimate pegged the salary needed to live comfortably at $70,413.

Is Rent Expensive In Tennessee?

If you’re looking to rent, Tennessee is about as good an option as you’ll find. According to Apartment List data from 2019, a two bedroom apartment in the Volunteer State goes for just $854 a month, as compared to the $1,175 national median.

Is Tennessee A Cheap State To Live In?

In short, Tennessee enjoys an especially low cost of living. According to a study conducted by the World Population Review, in 2021 Tennessee is the country’s sixth cheapest state to live in. That’s pretty standard for The Volunteer State, where living costs have historically landed it in the top ten for affordability.

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Is Tennessee A Tax Friendly State?

Tennessee Taxes. Residents of the Volunteer State pay no taxes on Social Security benefits, pensions or distributions from their retirement plans. That’s because Tennessee is one of a handful of states without an income tax. Tennessee is also one of the states with no estate or inheritance taxes.

Is It Better To Live In Texas Or Tennessee?

When comparing the two states, however, Texas comes out on top. Ranked 37th in the nation overall for safety, it has a better property crime and violent crime rate than Tennessee, which ranks 45th in the nation for safety.


Above, you have tried our best to provide you with an exact cost of living in Tennessee as well as the other cities in Tennessee, including the cost of living in Nashville Tennessee. But, the above-mentioned cost of living may vary with time. Like any state, cost of living expenses will vary across the state. So, this was all about the cost of living in Tennessee