How Much Do You Need to Make to Live in Nashville?

Understanding a city’s financial landscape is a practical first step for anyone considering a move. Living costs vary considerably across locations, shaped by local economies and demand. Nashville, a vibrant and expanding metropolitan area, presents unique financial considerations. This guide provides an overview of the financial requirements for residing in Music City, helping individuals estimate the income needed for their desired lifestyle.

Key Living Expenses in Nashville

Housing represents a significant portion of a household budget in Nashville, with rental rates reflecting the city’s growth. As of August 2025, the average rent for an apartment is approximately $1,689 per month. A studio apartment typically costs around $1,557 monthly, a one-bedroom averages $1,689, and a two-bedroom averages about $2,074 per month. For homeownership, the median home price in Nashville was approximately $480,000 in July 2025, with condominiums averaging around $339,000 in January 2025.

Utilities contribute a regular expense. A standard utility bill for an apartment, encompassing electricity, heating, cooling, water, and trash services, averages around $160.56 monthly. Electricity costs approximately $182.42 per month, while internet service averages about $74.06 monthly. Water bills in Tennessee average around $36 each month, and mobile phone services add approximately $45 per month.

Transportation expenses vary by personal choice. Public transportation offers an option, with a single bus ride costing about $2.25 and a monthly pass priced at approximately $70. For vehicle owners, gasoline prices in 2025 average around $3.26 per gallon. Annual car insurance for full coverage in Nashville typically costs about $1,708, or $142 per month. Vehicle maintenance and repair costs average around $900 per year.

Food costs are a component of daily living. A single person in Nashville might spend between $168 and $400 on groceries each month, with an average closer to $346. For a family of four, monthly grocery expenses could range from $775 to $900. Dining out adds to food expenditures, with an inexpensive meal for one costing about $18, and a mid-range dinner for two typically ranging from $62.50 to $80.

Healthcare costs vary based on individual health needs and insurance coverage. The average yearly out-of-pocket healthcare expense for consumers is approximately $1,142. For those purchasing individual health insurance through the Affordable Care Act (ACA) Marketplace, a Silver plan averages around $621 per month in 2025. Out-of-pocket spending for physician and clinical services is estimated at $245 per person annually, with prescription drug spending around $177 per person.

Miscellaneous and personal expenses cover discretionary spending. Annual entertainment spending in Nashville averages about $2,482. This can include movie tickets, which cost approximately $15 per person, or a gym membership, which typically runs around $49.14 monthly. Other common costs include haircuts, averaging about $28.90, and dry cleaning services, which cost around $16.55.

Personalizing Your Cost of Living Estimate

An accurate assessment of living expenses requires personalizing estimates based on individual circumstances and lifestyle choices. The decision to live alone, with roommates, or with a family significantly impacts housing costs. Shared living arrangements can substantially reduce individual housing outlays.

Daily habits also influence overall spending. Frequent dining out increases food expenses compared to home cooking. Reliance on ride-sharing services or owning multiple vehicles results in higher transportation costs than using public transit or commuting by bicycle. Entertainment preferences, such as attending numerous concerts, elevate discretionary spending.

Household composition introduces financial considerations, particularly for those with dependents. Raising children involves expenses such as childcare, educational supplies, and increased food and healthcare needs, which elevate the total cost of living. Larger families often necessitate bigger homes, further impacting housing expenditures.

The choice of neighborhood within Nashville also influences housing costs and transportation. More affluent areas typically feature higher rental rates and home prices. Living further from work may increase fuel consumption and commute times.

Existing financial obligations, such as student loan payments or credit card balances, must be factored into a personal budget. Planning for future financial goals, including saving for a down payment or contributing to retirement, also adds to income calculations.

Translating Expenses into Required Income

After calculating personalized monthly expenses, convert this total into a gross annual or monthly income figure. Gross income is the amount earned before deductions. Summing all estimated monthly expenses, including housing, utilities, transportation, food, healthcare, and miscellaneous costs, provides total expenditure. This total forms the foundation for determining the necessary gross income.

The impact of taxes is a consideration when calculating required gross income. Residents in Tennessee benefit from a unique tax structure as the state does not impose an income tax on wages, salaries, or bonuses. This means a larger portion of earnings remains as net income compared to states with individual income taxes.

Federal taxes still apply, including Federal Insurance Contributions Act (FICA) taxes for Social Security and Medicare. Social Security tax is 6.2% of wages up to an annual limit, and Medicare tax is 1.45% of all wages, with an additional 0.9% Medicare surtax on earnings above certain thresholds for higher earners.

Consumers also face a sales tax in Tennessee. The state has a 7% base sales tax rate, and local governments can add up to an additional 2.75%, resulting in a combined rate as high as 9.75% in some areas. Food items are taxed at a lower rate of 4%. These taxes reduce discretionary funds, increasing the overall cost of living.

To determine the gross income needed, account for federal tax liabilities and personal savings goals. A simplified approach involves dividing total annual expenses by a percentage that represents the take-home pay after federal taxes and any desired savings contributions. For example, if estimated annual expenses are $60,000, and a person aims to save 10% of their gross income while expecting federal taxes to consume another 15%, they would divide $60,000 by 0.75 (100% – 10% savings – 15% taxes). This calculation provides the gross income required to cover expenses, save, and manage tax obligations.