How Costly Is It to Dwell in Tennessee? TN Price of Residing Breakdown [2025]

Excited about shifting to Tennessee? Sensible transfer! Earlier than you pack up, let’s discuss what your pockets can count on. From Nashville’s music scene to the peaceable Smoky Mountains, Tennessee has so much to supply. However what’s going to you really pay for housing, utilities, and groceries? This information breaks down the true prices of dwelling in Tennessee so you can also make a smart move about your transfer to Tennessee.

Price of Residing in Tennessee at a Look

Month-to-month Expense Percentages Primarily based on Common Tennessee Median Family Revenue

• Total: The price of dwelling in Tennessee runs about 10-15% decrease than the nationwide common for many bills.
• Housing Prices: The standard dwelling prices round $300,000, and lease costs are about 20-30% decrease than what most Individuals pay.
• Month-to-month Payments: Anticipate to pay round $140 for a mean month-to-month vitality invoice, $101 for gasoline, and $36 for water.
• No state revenue tax: Tennessee solely has a 7% gross sales tax (4% on meals), which suggests higher tax charges than many states, particularly in case you’re retired.

Tennessee’s Residing Index: How It Compares

Tennessee’s dwelling index rating exhibits simply how reasonably priced the state is. On the price of dwelling index the place 100 represents the nationwide median, Tennessee scores about 89.8 general. Which means prices in Tennessee are roughly 10% beneath what most Individuals pay.

Whenever you break down this dwelling index by class:

• Housing prices: 79.4 (over 20% cheaper than nationwide median)
• Transportation prices: 93.2
• Healthcare prices: 95.3
• Meals prices: 94.1

These scores present why so many individuals discover the dwelling value in Tennessee so interesting in comparison with increased value areas.

Home Costs: A lot Extra Inexpensive Than Most States

Comparability of Housing Prices in Tennessee

In the case of housing prices, Tennessee offers you extra bang to your buck. Total, dwelling costs in Tennessee value about 20% lower than the nationwide common. The state’s housing prices are a significant factor in its low value standing.

Dwelling costs fluctuate so much relying on which Tennessee cities you are contemplating:

• Houses on the market in Nashville sometimes promote within the mid-$400,000s
• Houses on the market in Memphis sometimes promote within the excessive $100,000s (one of many lowest value choices within the state)
• Houses on the market in Knoxville sometimes promote within the mid-$300,000s

Don’t fret if these costs sound excessive for Nashville – there are nonetheless reasonably priced neighborhoods in Nashville. And even in cheaper cities like Memphis, you may discover some pricier areas too.

For the bottom value housing, the finest locations to dwell in Tennessee embrace Chattanooga, Clarksville, and Johnson Metropolis, the place your housing greenback stretches even additional.

Renting Is Cheaper Too

Not prepared to purchase? Renting prices in Tennessee run lower than in most states. The common residence in Tennessee rents for about $1,730 monthly.

Even within the Nashville metro space, the place the value of dwelling is increased than the state common, lease solely bumps up barely to round $1,760 month-to-month. Most Tennessee renters pay 20-30% lower than the nationwide median. That is plenty of more money in your pocket every month!

For a single grownup or somebody simply beginning out, many Tennessee cities supply much more reasonably priced choices. The bottom value leases might be present in smaller communities all through the state.

Your Month-to-month Payments Will Be Decrease

No person loves paying payments, however no less than in Tennessee, they will not empty your pockets. In line with the Vitality Data Administration and different sources, here is what most individuals pay every month:

• Electrical energy: Round $140 for a mean month-to-month vitality invoice
• Pure gasoline: About $101
• Water: Roughly $36

Your electrical invoice will change based mostly on your private home dimension. A tiny 500 sq. ft. residence may solely value $36 monthly to energy, whereas an enormous 3,000 sq. ft. home might run over $210. These vitality prices in Tennessee typically run decrease than the nationwide common.

Neighborhood and financial analysis exhibits that Tennessee residents take pleasure in extra reasonably priced utility prices partly as a result of Tennessee Valley Authority’s function in offering energy to the area.

Grocery Buying Will not Break the Financial institution

Tennessee Common Meals Prices

Meals prices in Tennessee will not depart you hungry or broke. The standard particular person spends about $251 monthly on groceries, or simply over $3,000 per yr. For comparability, the common month-to-month grocery invoice in the USA for a pair ranges from $510 to $820.

Particular person meals costs in Tennessee are usually decrease than nationwide averages. For instance:

• A dozen eggs: About $3.50
• Gallon of milk: Round $3.75
• Loaf of bread: Roughly $2.50

Grocery prices do change relying on which Tennessee metropolis you name dwelling:

• Knoxville has the most affordable groceries (89.9 on the price index)
• Nashville has the best grocery costs (97.5 on the price index)

Even within the “costly” areas, you may nonetheless pay lower than most Individuals to your meals purchasing, making Tennessee’s value of dwelling fairly enticing for budget-conscious consumers.

Healthcare: In regards to the Identical as Different States

Healthcare prices in Tennessee stick fairly near the nationwide common. The standard Tennessean spends round $6,950 per yr on healthcare.

Your precise healthcare prices will rely upon:

• Your age
• Your well being wants
• Which insurance coverage plan you select
• The place in Tennessee you reside

For instance, in Memphis, medical health insurance prices fluctuate extensively. Older individuals typically pay increased premiums. The most cost effective possibility is normally Ambetter’s Silver plan at round $470 month-to-month, whereas Blue Cross Blue Protect costs extra ($524) however has a decrease out-of-pocket most ($4,210).

Any monetary advisor would recommend contemplating healthcare prices rigorously when planning your transfer to Tennessee, as they characterize a good portion of most family budgets.

Transportation Prices: Fuel Costs and Commutes

Transportation prices in Tennessee are one other brilliant spot to your funds. As of March 2024, here is what you may pay at Tennessee gasoline stations:

• Common gasoline: $3.09 per gallon
• Mid-grade gasoline: $3.50 per gallon
• Premium gasoline: $3.87 per gallon
• Diesel: $3.82 per gallon

Tennessee Transit Prices Comparability

One large bonus: Tennessee drivers spend much less time caught in site visitors than individuals in most different states. Which means decrease transportation prices since you may burn much less gasoline and waste much less time throughout your commute.

Auto insurance coverage in Tennessee additionally tends to be extra reasonably priced than the nationwide median, with common premiums round $1,300 yearly, although this varies based mostly in your driving historical past and protection wants.

Taxes: A HUGE Profit to Residing in Tennessee

Tennessee is tremendous tax-friendly, and that is no small factor! The tax charges listed below are among the many most favorable within the nation. This is what makes prices in Tennessee so significantly better from a tax perspective:

• No state revenue tax in any respect! What you earn is what you retain.
• No tax on pension revenue – nice for retirees.
• Low property taxes in comparison with the nationwide median.
• No state capital positive factors taxes whenever you promote your private home.

You’ll pay gross sales tax (7% on most objects, 4% on meals), plus native taxes that may push the full to eight.5-9.75% relying in your county. However general, Tennessee ranks because the third most tax-friendly state in America. Your pockets will thanks!

Even with the state common gross sales tax being barely increased than some states, the general tax burden is considerably decrease than the nationwide median.

Childcare Prices: Will depend on Your Metropolis

Tennessee Common Month-to-month Childcare Prices

If in case you have youngsters, childcare prices in Tennessee matter. Primarily based on financial analysis, the common month-to-month childcare prices are:

• Toddler care: $830
• Toddler care: $770
• Youngsters over 2 years: $675

These costs change based mostly on the place in Tennessee you reside:

• Clarksville provides the most affordable childcare: $610 for infants, $587 for toddlers, and $526 for teenagers over 2.
• Nashville metro space is costlier: $933 for infants, $867 for toddlers, and $705 for teenagers over 2.

For a household with kids, these prices can considerably affect your general dwelling value. Make sure you issue them into your funds when contemplating a transfer to Tennessee.

Different Prices: Having Enjoyable in Tennessee

In addition to the fundamentals, you may spend cash on enjoyable stuff too. Miscellaneous prices in Tennessee embrace leisure, eating out, and extra. The state has loads of leisure choices:

• A visit to Graceland in Memphis: $28 to $225 relying on the tour package deal
• A day at Dollywood in Pigeon Forge: Begins at $92

Neighborhood and financial analysis exhibits that leisure prices in Tennessee cities typically run 5-10% beneath the nationwide common. Plus, you may have prices for consuming out, sports activities occasions, and new garments. The excellent news is that even these increased value luxuries are sometimes extra reasonably priced than what you’d pay in different states with the next value of dwelling index.

Is Tennessee Inexpensive For Your Finances?

The underside line: Tennessee offers you extra to your cash than most states. Whether or not you are housing prices, utility prices, meals prices, or taxes, your greenback stretches additional right here.

When you’re dreaming about shopping for a house in Tennessee—the land of nation music and delightful mountains, Tennessee’s affordability makes that dream far more achievable. In spite of everything, why pay the next value to dwell some other place when you may take pleasure in considered one of America’s most reasonably priced states?

Frequent Questions About Tennessee’s Price of Residing

Is Tennessee costly to dwell in?

No! The price of dwelling in Tennessee runs lower than the nationwide common in nearly each class. Housing prices, utilities, groceries, and clothes all value much less right here than in most states. Some areas (like components of the most costly counties) have the next value than others, however general, Tennessee provides a low value various to many states.

Why resides in Tennessee so reasonably priced?

Tennessee’s low value standing comes from:

• No state revenue tax
• Low property taxes in lots of counties
• A rising economic system with loads of jobs
• Decrease housing prices than coastal states
• Affordable transportation prices and shorter commutes

How a lot cash do that you must dwell comfortably in Tennessee?

Most individuals can dwell comfortably in Tennessee on about $42,060 per yr, or $20 per hour. That is decrease than the nationwide median revenue requirement. What you may want relies on your job, expertise, and which Tennessee metropolis you select to dwell in. A single grownup may want much less, whereas a household would wish extra.

How a lot decrease is Tennessee’s value of dwelling in comparison with different states?

Tennessee’s general dwelling value runs about 3-16% decrease than the common U.S. metropolis. Which means your paycheck goes additional right here, whether or not you are shopping for a home, paying month-to-month payments, or simply choosing up groceries. Utilizing a dwelling calculator may help you perceive precisely how these prices in Tennessee examine to your present location.

Able to make the transfer? Tennessee’s mixture of affordability, pure magnificence, and southern hospitality makes it an excellent alternative for anybody trying to stretch their {dollars} with out sacrificing high quality of life.