What Is the Cost of Living in Nashville?

The cost of living represents the amount of money required to cover basic expenses such as housing, food, utilities, and transportation. It serves as a benchmark for understanding the financial demands of maintaining a standard of living in a specific location. Various factors influence these expenses, including local economic conditions, population density, and the availability of resources. Individual lifestyle choices and spending habits also affect the overall financial outlay.

Housing Costs

Housing expenses typically constitute the largest portion of a household’s budget. In Nashville, average rental prices vary depending on the unit size and specific neighborhood. As of early 2025, a studio apartment generally rents for approximately $1,600 per month, while a one-bedroom apartment averages around $1,850 per month. Two-bedroom units typically command rents closer to $2,300 monthly, with prices fluctuating based on proximity to downtown and desired amenities.

For those considering homeownership, Nashville’s median home sale price was about $450,000 as of early 2025. This reflects a competitive market and a substantial investment. Property taxes also contribute to homeownership costs, calculated based on the assessed value of the property.

Property assessments in Tennessee are set at 25% of the appraised value for residential properties. The combined county and municipal property tax rate in Davidson County, which includes Nashville, is approximately $2.76 per $100 of assessed value. Therefore, a home appraised at $450,000 would be assessed at $112,500 for tax purposes, leading to an annual property tax liability of about $3,105.

Daily Living Expenses

Daily living expenses encompass recurring costs for groceries, utilities, and transportation. A single adult in Nashville might expect to spend approximately $350 to $450 on groceries each month. This estimate can increase significantly for larger households or those with specific dietary preferences.

Monthly utility costs in Nashville typically include electricity, water, gas, internet, and trash services. Residents can anticipate spending between $180 and $250 for basic utilities, with electricity being a notable component, especially during peak heating or cooling seasons. Internet services alone often range from $60 to $80 per month.

Transportation expenses vary based on individual commuting habits and vehicle ownership. The average price for a gallon of regular gasoline in Nashville generally hovers around $3.20 to $3.50. Public transportation options, primarily provided by WeGo Public Transit, offer bus fares at $2.00 for a single ride, with monthly passes available for around $65.

For those relying on personal vehicles, car insurance premiums in Nashville can range from $150 to $250 per month, influenced by factors such as driving record, vehicle type, and coverage limits. Parking fees in urban areas can also add to daily transportation costs. These combined expenses form a notable part of the overall cost of living.

Healthcare and Miscellaneous Costs

Healthcare costs include insurance premiums, deductibles, and out-of-pocket expenses. For an individual, average health insurance premiums in Nashville can range from $400 to $600 per month for plans purchased on the marketplace. Routine doctor visits without insurance might cost between $100 and $200.

Miscellaneous expenses include discretionary and personal care items. Dining out in Nashville can add considerable expense, with a mid-range meal for two often costing $60 to $80. Entertainment options, such as concert tickets or attraction admissions, also contribute to leisure spending.

Personal care items, including toiletries and haircuts, represent regular outlays. For families, childcare costs can be a significant monthly expenditure, with full-time daycare for an infant typically ranging from $1,200 to $1,800 per month. These varied categories collectively shape the overall financial picture for residents.

Local Tax Considerations

Understanding the local tax structure is essential for assessing the overall cost of living in Nashville. Tennessee has a combined state and local sales tax rate that affects most goods and services. The state sales tax rate is 7%, and Davidson County adds a local sales tax of 2.25%, resulting in a combined sales tax rate of 9.25% on taxable purchases.

Property taxes are levied by Davidson County and are a direct expense for homeowners. These taxes are calculated based on the assessed value of real property.

A notable aspect of Tennessee’s tax landscape is the absence of a state income tax on wages. This means that residents do not pay state taxes on their earned income, which can represent a substantial saving compared to states with high income tax rates. While there is no state income tax on wages, the state does impose a tax on interest and dividends, known as the Hall Income Tax, though it is being phased out.