Cost of Living for Tennessee (2026)
Tennessee (TN) Key Facts
Cost of Living Index
90
National Average Index
100
Median Household Income
$56,000
Approximate Median Rent (1 B R)
$1,050/month
State Income Tax Rate
None (no state income tax)
How This Calculator Works in Tennessee
This cost of living calculator helps you compare salaries between Tennessee and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Tennessee's cost of living index of 90 relative to the national average of 100 to provide an accurate comparison.
Tennessee Overview
Tennessee has a cost of living index of 90, where 100 represents the national average. Nashville has driven up Tennessee's costs in recent years, but the state overall is below the national average. Memphis and Knoxville remain quite affordable. The median household income is $56,000, which has a purchasing power equivalent of approximately $62,222 in an average-cost location.
How Tennessee Compares
Tennessee's cost of living index of 90 compares to Kentucky's 90 and Virginia's 104. Residents in Tennessee benefit from lower costs compared to the national average, meaning salaries stretch further here. The most affordable states like Mississippi (84) cost roughly 7% less than Tennessee, while the most expensive like Hawaii (192) cost 113% more.
| State | Top Rate | Notes |
|---|---|---|
| Kentucky | COL Index: 90 | Kentucky has a cost of living index of 90 and a median household income of $55,000. It has a similar cost of living to Tennessee. |
| Virginia | COL Index: 104 | Virginia has a cost of living index of 104 and a median household income of $80,000. It is more expensive than Tennessee. |
| North Carolina | COL Index: 96 | North Carolina has a cost of living index of 96 and a median household income of $60,000. It is more expensive than Tennessee. |
The national average cost of living index is 100. Tennessee's index of 90 is below the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Tennessee's median household income of $56,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Tennessee Residents
- 1Nashville has driven up Tennessee's costs in recent years, but the state overall is below the national average. Memphis and Knoxville remain quite affordable.
- 2Tennessee's median household income of $56,000 has a real purchasing power of about $62,222 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Tennessee has no state income tax, which effectively increases your purchasing power compared to states with similar costs of living but income tax obligations.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Tennessee between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.