Is it cheaper to live in Lincoln or Memphis?

Lincoln, NE is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 7% below Memphis, TN's $1,110, mainly because of rent.

How much more do you need to earn to live in Lincoln than in Memphis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lincoln versus $38,000 in Memphis.

Which has lower taxes, Lincoln or Memphis?

Lincoln is taxed under Nebraska's rules (a top state income tax rate of 4.55% and a 5.5% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Lincoln vs Memphis Cost of Living 2026

Lincoln

Nebraska

$1,030/mo est.

Memphis

Tennessee

$1,110/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,030 in Lincoln, NE versus $1,110 in Memphis, TN. Overall, Lincoln, NE is roughly 7% cheaper to live in day-to-day than Memphis, TN, driven mainly by rent.

Median household income is $69,991 in Lincoln, NE and $51,211 in Memphis, TN — about 27% higher in Lincoln, NE. Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax; Tennessee has no state income tax and a 7% state sales tax.

Lincoln, NE

Memphis, TN

Rent

Studio

$851

$877

+3% in Memphis, TN

1 Bedroom

$879

$948

+8% in Memphis, TN

2 Bedroom

$1,070

$1,073

+0% in Memphis, TN

3 Bedroom

$1,379

$1,281

+7% in Lincoln, NE

Buying a Home

Median Home Value

$248,200

$157,100

+37% in Lincoln, NE

Income

Median Household Income

$69,991

$51,211

+27% in Lincoln, NE

Metro Median Wage (annual)

$49,800

$46,890

+6% in Lincoln, NE

People & Lifestyle

Median Age

33.4 yr

34.3 yr

+0.9 yr in Memphis, TN

Homeownership

55.8%

46.0%

+9.8 pp in Lincoln, NE

Bachelor's+ (25+)

41.0%

28.2%

+12.8 pp in Lincoln, NE

Avg Commute

18.3 min

21.3 min

+3.0 min in Memphis, TN

Crime (per 100k/yr)

Violent Crime

363.1

2,507.6

+591% in Memphis, TN

Property Crime

2,484.4

6,966.3

+180% in Memphis, TN

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

51.5°F

63.1°F

+11.6°F in Memphis, TN

Annual Precipitation

30.9 in

53.7 in

+22.8 in in Memphis, TN

Gas

Regular Gasoline

$3.94/gal

about equal

Area: Midwest (PADD 2) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

—

$1.75

Adult base one-way fare — — vs MATA (2026).

Utilities

Electricity (¢/kWh)

13.6

14.5

+6% in Memphis, TN

Natural Gas ($/MCF)

$15.53

$16.83

+8% in Memphis, TN

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.00

+7% in Lincoln, NE

Bread (lb)

$1.66

$1.75

+5% in Memphis, TN

Eggs (doz)

$3.63

$2.21

+39% in Lincoln, NE

Ground Beef (lb)

$6.77

$6.45

+5% in Lincoln, NE

Chicken (lb)

$2.10

$1.90

+9% in Lincoln, NE

Bananas (lb)

$0.62

about equal

Average prices — Midwest vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (NE / TN)

5.5%

+1.5 pp in TN

Income Tax (top rate)

4.55%

None

+4.5 pp in NE

Lincoln vs Memphis — FAQ

Is it cheaper to live in Lincoln or Memphis?: Lincoln, NE is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 7% below Memphis, TN's $1,110, mainly because of rent.
How much more do you need to earn to live in Lincoln than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lincoln versus $38,000 in Memphis.
Which has lower taxes, Lincoln or Memphis?: Lincoln is taxed under Nebraska's rules (a top state income tax rate of 4.55% and a 5.5% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).