What Is the Cost of Living in Knoxville, Tennessee?

The cost of living represents the financial outlay required to maintain a particular standard of living in a specific location. It encompasses expenses for necessities like housing, food, transportation, and healthcare. Understanding this metric is crucial for individuals evaluating potential relocation or planning for future budgetary needs. The cost of living directly impacts purchasing power and overall financial comfort. This analysis examines the components of the cost of living, focusing on Knoxville, Tennessee.

Key Components of Cost of Living

Several universal categories define the overall cost of living in any given area, each contributing significantly to an individual’s financial burden. Housing costs, including rent or mortgage payments, property taxes, and associated insurance, often represent the largest expenditure for most households. Utility expenses, such as electricity, natural gas, water, and internet services, form a substantial and recurring part of a household budget.

Food expenses, covering both groceries for home preparation and dining out, are a continuous part of living. Transportation costs, for vehicle ownership, fuel, maintenance, or public transit fares, directly affect accessibility and daily commutes. Healthcare expenditures, encompassing insurance premiums, co-pays for doctor visits, prescription medications, and other medical services, can vary widely. Beyond these primary categories, miscellaneous goods and services contribute to the cost of living. This broad category includes personal care items, clothing, entertainment, and education. Variations in the cost of any of these elements significantly impact a household’s financial capacity and standard of living.

Cost of Living in Knoxville: A Detailed Breakdown

Knoxville, Tennessee, presents a distinct financial landscape for its residents. Housing, the most substantial expense, reflects varied pricing. As of late 2024 and mid-2025, average apartment rent in Knoxville ranges from $1,300 to $1,450 per month, though some reports indicate averages around $1,705. For homeownership, the median home sale price in the Knoxville area was $354,450 in April 2024, with average listing prices sometimes reaching $401,982.

Utility expenses in Knoxville are generally manageable. Average monthly utility bills for gas, electricity, and water are often reported around $193.04, with broader estimates for basic services ranging from $150 to $200 per month. Electricity costs average about $190 per month, or $151.04 per month for Knoxville Utilities Board customers. Internet services typically add an additional $60 to $100 to monthly expenses.

Grocery and food costs in Knoxville are relatively standard. A single resident might spend around $279.25 monthly on groceries, while a family of four could see monthly grocery bills of about $821.33. Common grocery items like a gallon of milk range from $3.20 to $4.69, a dozen eggs from $1.99 to $3.34, and a pound of boneless, skinless chicken breasts from $4 to $6.50. Dining out varies, with an inexpensive meal costing $9 to $15 per person, and a three-course meal for two at a mid-range restaurant typically falling between $40 and $50.

Transportation costs are also a factor for Knoxville residents. Gasoline prices in Knoxville generally hover around $2.70 to $2.80 per gallon. Public transportation is available through Knoxville Area Transit (KAT), with a single bus ride costing $1 and a day pass priced at $2. Downtown Knoxville also offers a free trolley service. Annual full-coverage car insurance in Knoxville typically ranges from $1,400 to $1,580.

Healthcare expenses for a family of four in Knoxville average around $2,603 annually, or about $216.92 monthly. A short visit to a private doctor may cost around $97 to $120.71. Miscellaneous expenses cover a range of goods and services. For instance, a pair of brand-name jeans might cost $30 to $50, and a movie ticket around $10 to $13.07.

Regarding taxes, Tennessee does not levy a state income tax. The state sales tax rate is 7%, but with local tax jurisdictions, the combined state and local sales tax rate in Knoxville is 9.25% (7% state, 2.25% local). A reduced sales tax rate of 5.5% applies to most groceries. Property taxes are assessed at both the city and county levels. For residential property, the assessed value is 25% of the appraised value. The City of Knoxville charges $2.1556 per $100 of assessed value, while Knox County charges $1.5540 per $100 of assessed value. A home within Knoxville city limits incurs both city and county property taxes, potentially doubling the property tax burden compared to areas outside the city limits.

Knoxville’s Cost of Living in Context

Knoxville’s cost of living is generally more affordable compared to the national average. Various analyses indicate that the overall cost of living in Knoxville is approximately 13% to 14% lower than the national average. This relative affordability is a significant draw for individuals and families considering relocation. Compared to the broader state of Tennessee, Knoxville’s cost of living is also slightly lower, sometimes by around 4%.

The primary driver of Knoxville’s affordability relative to the national landscape is housing, which is often reported as 23% to 26% cheaper than the U.S. average. Utilities and transportation expenses also contribute to this lower overall cost, being approximately 11% to 15% below national averages. While grocery costs are largely in line with the national average, or only slightly lower, the substantial savings in housing and other core expenses create a more favorable financial environment.

Residents in Knoxville can maintain a similar standard of living for less financial outlay than in many other parts of the country. The lower cost structure, particularly in housing, can free up household income for other financial goals or discretionary spending.