Tennessee A Cost of Living Guide
Tennessee, known for its rich culture, southern hospitality, and breathtaking landscapes, beckons those seeking an affordable yet vibrant lifestyle. In this guide, we’ll delve into the cost of living in Tennessee, comparing various expenses with the national average, and providing insights on key cities across the state.
The Average Cost of Living in Tennessee
When it comes to affordability, Tennessee shines. Popular cities in the state boast a cost of living 3-16% lower than the average U.S. city. We employ a comprehensive cost of living index to compare various expense categories. Here’s a breakdown:
- Total: Tennessee – 90, U.S. – 100
- Housing: Tennessee – 81, U.S. – 100
- Utilities: Tennessee – 92, U.S. – 100
- Groceries: Tennessee – 94, U.S. – 100
- Transportation: Tennessee – 88, U.S. – 100
- Health Care: Tennessee – 90, U.S. – 100
- Miscellaneous: Tennessee – 95, U.S. – 100
Housing Costs in Tennessee
At the beginning of 2022, median home prices in Tennessee were nearly $350,000, about 7% lower than the national median of $375,000. Rental rates for a two-bedroom apartment were nearly 12% lower than the national median of almost $1,300. Different cities offer varying costs, with Morristown being 31% lower than the national average.
- Nashville: Median Home Price – $453,000, Median Apartment Rent – $1,457
- Knoxville: Median Home Price – $349,900, Median Apartment Rent – $1,235
- Clarksville: Median Home Price – $336,900, Median Apartment Rent – $1,194
- Chattanooga: Median Home Price – $314,999, Median Apartment Rent – $1,158
- Memphis: Median Home Price – $220,500, Median Apartment Rent – $1,182
Utilities
Utility costs in Tennessee range from 13% lower than the national average in Kingsport to only 1% higher in Morristown. Maury County sits in the middle range, being 11% lower than the national average.
Groceries
Grocery costs in Tennessee range from around 1% lower than the national average in Chattanooga to 13% lower in Knoxville. Maury County is slightly below the national average, with a half-gallon of milk and cereal costing $6.19, just 0.8% less than the national average.
Transportation
Transportation costs range from around 5% lower than the national average in the Nashville metro area to 18% lower in Cleveland. Memphis falls in the middle range, being 12% lower than the national average.
Health Care
Health care costs vary from around 4% lower than the national average in Chattanooga to 18% lower in Madison County. Kingsport falls in the middle range, with costs being around 8% lower than the national average.
Taxes
Tennessee boasts no state income tax, but it does have a state sales tax rate of 7%, or 9.55% if you include the average local rate, making it the highest in the country for total sales tax.
Miscellaneous Goods and Services
Miscellaneous costs encompass a wide range of goods and services. In Tennessee, these costs range from 15% lower than the national average in Cleveland to 5% higher in Johnson City. Cookeville stands as an example of an average Tennessee city, with costs around 4% lower than the national average.
How Much Money Do You Need to Live Comfortably in Tennessee?
The median household income in Tennessee is $53,320. To live comfortably, ensure that your housing costs do not exceed 25% of your monthly take-home pay. Whether renting or buying, adhering to this rule ensures balanced living expenses.
Tennessee’s Lowest Cost of Living by County
For those seeking the most affordable places to live, consider counties like Van Buren, Perry, Decatur, Grundy, and Wayne.
Comparing the Cost of Living in Tennessee With Your Current City
Use our free Cost of Living Calculator to gauge the affordability of your desired Tennessee city. If the cost of living is higher than your current budget, consider adjusting your standard of living, seeking higher-paying job opportunities, or exploring more affordable neighboring areas.
Conclusion
Tennessee’s allure extends beyond its cultural gems; it’s an economically sound choice for many. By understanding the nuances of its cost of living, you can make an informed decision about your future in the Volunteer State. Remember, with careful planning, Tennessee could offer you an enriching life without breaking the bank.