How Much Is It to Live in Tennessee?

The cost of living includes expenses for housing, food, transportation, and healthcare. Tennessee generally has a lower cost of living than the national average, making it an attractive option for many. However, expenses vary significantly by location within the state, with major metropolitan areas typically having higher costs than suburban or rural communities.

Housing and Utilities

Housing represents the most substantial portion of living expenses. In Tennessee, average housing costs typically range from $828 to $1,477 per month. The median home value across the state was approximately $334,133 in 2025, though this figure varies significantly by region. For instance, the median home price in Nashville can be considerably higher, ranging from $450,000 to $500,000.

Rental costs also vary, with the statewide average rent around $1,600 in 2025. A one-bedroom apartment in Memphis averages around $957, while in Nashville, a one-bedroom apartment averages $1,660. The median rent cost across Tennessee generally falls around $869 per month.

Property taxes in Tennessee are notably lower than the national average, with a median annual payment of about $1,356. The average effective property tax rate is approximately 0.58% of a property’s assessed value. While this rate is low statewide, urban areas may experience higher rates, such as Davidson County (Nashville) where the median annual property tax bill can be around $2,390.

Utilities average about $389 per month across Tennessee. Electricity bills average around $184 monthly, though actual usage impacts this figure. Natural gas costs average about $101 per month, and water bills are typically around $36 monthly. Internet services generally range from $60 to $100 per month, depending on the provider and speed.

Daily Essentials

Daily essentials encompass recurring costs for food and transportation. Food expenses for groceries average around $251 per person each month in Tennessee. For a single adult, annual food costs can be approximately $3,351, while a family of two working adults and two children might spend about $9,856 annually on groceries. Overall, grocery costs in the state are estimated to be about 5% lower than the national average.

Transportation expenses in Tennessee typically range from $5,477 to $15,530 per year. A single adult can expect to spend around $5,509 annually on transportation.

Gasoline prices in Tennessee are generally lower than the national average, with the state average for regular unleaded gasoline at approximately $2.77 per gallon in 2025. Car insurance premiums vary but average around $165 per month for full coverage and $42 per month for state-mandated minimum liability coverage. These rates are often lower than national averages, though costs can be higher in more populated cities like Memphis due to factors such as accident rates.

Healthcare, Taxes, and Personal Spending

Healthcare costs are an important consideration. In Tennessee, healthcare services are generally about 5% lower than the national average. However, individual healthcare expenses can fluctuate widely based on insurance coverage, medical needs, and the frequency of doctor visits or prescription requirements.

Tennessee’s tax structure is unique due to the absence of a state income tax on wages and salaries. This can result in significant savings for residents compared to states with high income tax rates. The statewide sales tax rate is 7%, which is among the higher rates nationally. Local sales tax rates can add an additional 2.00% to 2.75%, bringing the combined state and local sales tax to as much as 9.75% or 10% in some areas. The average combined state and local sales tax rate is around 9.56%.

Property taxes are collected at the local level and contribute to the overall tax burden. Tennessee’s average effective property tax rate is relatively low compared to the rest of the country. This combination of no state income tax and comparatively low property taxes often makes the state financially appealing.

Childcare costs can be a significant expense for families with young children. The average annual cost for infant care in Tennessee is approximately $11,985, or about $999 per month. For a four-year-old, the annual cost averages around $10,389, or $866 per month. Costs for childcare can be considerably higher in major urban centers like Nashville, where infant care can average $2,614 per month. Other personal spending includes entertainment, clothing, and recreational activities.