Median one-bedroom rent across the cities we track is $1,688 in California versus $1,142 in Tennessee. Overall, Tennessee runs roughly 32% cheaper on rent than California, its main day-to-day cost driver.
Median household income across tracked cities is $83,969 in California and $63,204 in Tennessee — about 25% higher in California. California has a top state income tax rate of 13.30% and a 7.25% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
7.25%
7%
+0.3 pp in California
Income Tax (top rate)
13.30%
None
+13.3 pp in California
Housing (median across tracked cities)
Median 1BR Rent
$1,688
$1,142
+32% in California
Median Home Value
$771,700
$270,100
+65% in California
Income (median across tracked cities)
Median Household Income
$83,969
$63,204
+25% in California
Climate (median across tracked cities)
Avg Annual Temperature
64.4°F
61.3°F
+3.2°F in California
California vs Tennessee — FAQ
- Is it cheaper to live in California or Tennessee?
- Tennessee is cheaper on rent — its median one-bedroom of $1,142 runs about 32% below California's $1,688, based on the cities we track in each state.
- How much more do you need to earn to live in California than in Tennessee?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $68,000 a year in California versus $46,000 in Tennessee.
- Which has lower taxes, California or Tennessee?
- California has a top state income tax rate of 13.30% and a 7.25% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 9/2 cities we track in California/Tennessee — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.