Cost of Living in Tennessee

Tennessee has a cost of living index of 94.3, meaning overall expenses are 5.7% lower the national average. With 133 cities tracked in our database, the state offers a wide range of living situations from very affordable small towns to pricier metropolitan areas.

Housing is typically the largest expense category. Average rent in Tennessee is approximately $1,312 per month, with significant variation between urban centers and rural communities. Median home values average around $437,186 statewide.

Tennessee has no state income tax, which is a significant financial advantage. Residents keep more of their earnings, making it especially attractive for high-income earners, retirees, and remote workers.