Is it cheaper to live in Memphis or New York City?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 44% below New York City, NY's $1,990, mainly because of rent.

How much more do you need to earn to live in Memphis than in New York City?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $68,000 in New York City.

Which has lower taxes, Memphis or New York City?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); New York City under New York's (a top state income tax rate of 10.90% and a 4% state sales tax).

Memphis vs New York City Cost of Living 2026

Memphis

Tennessee

$1,110/mo est.

New York City

New York

$1,990/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,110 in Memphis, TN versus $1,990 in New York City, NY. Overall, Memphis, TN is roughly 44% cheaper to live in day-to-day than New York City, NY, driven mainly by rent.

Median household income is $51,211 in Memphis, TN and $79,713 in New York City, NY — about 36% higher in New York City, NY. Tennessee has no state income tax and a 7% state sales tax; New York has a top state income tax rate of 10.90% and a 4% state sales tax.

Memphis, TN

New York City, NY

Rent

Studio

$877

$1,633

+86% in New York City, NY

1 Bedroom

$948

$1,705

+80% in New York City, NY

2 Bedroom

$1,073

$1,781

+66% in New York City, NY

3 Bedroom

$1,281

$2,065

+61% in New York City, NY

Buying a Home

Median Home Value

$157,100

$751,700

+378% in New York City, NY

Income

Median Household Income

$51,211

$79,713

+56% in New York City, NY

Metro Median Wage (annual)

$46,890

$61,430

+31% in New York City, NY

People & Lifestyle

Median Age

34.3 yr

38.0 yr

+3.7 yr in New York City, NY

Homeownership

46.0%

32.8%

+13.2 pp in Memphis, TN

Bachelor's+ (25+)

28.2%

41.0%

+12.8 pp in New York City, NY

Avg Commute

21.3 min

40.6 min

+19.3 min in New York City, NY

Crime (per 100k/yr)

Violent Crime

2,507.5

690.9

+72% in Memphis, TN

Property Crime

6,965.8

2,413.5

+65% 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

63.1°F

55.0°F

+8.1°F in Memphis, TN

Annual Precipitation

53.7 in

49.9 in

+3.7 in in Memphis, TN

Gas

Regular Gasoline

$4.35/gal

$4.44/gal

+2% in New York City, NY

Area: Midwest (PADD 2) vs New York City.

Public Transit

Base Fare (one-way)

$1.75

$3.00

+71% in New York City, NY

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

Utilities

Electricity (¢/kWh)

15.1

28.6

+89% in New York City, NY

Natural Gas ($/MCF)

$15.54

$18.90

+22% in New York City, NY

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

Groceries

Milk (gal)

$4.16

$4.14

+1% in Memphis, TN

Bread (lb)

$1.73

$1.92

+11% in New York City, NY

Eggs (doz)

$2.19

$2.25

+3% in New York City, NY

Ground Beef (lb)

$6.56

$6.90

+5% in New York City, NY

Chicken (lb)

$1.90

$2.02

+6% in New York City, NY

Bananas (lb)

$0.61

$0.68

+11% in New York City, NY

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

State Taxes

Sales Tax (TN / NY)

+3.0 pp in TN

Income Tax (top rate)

None

10.90%

+10.9 pp in NY

Memphis vs New York City — FAQ

Is it cheaper to live in Memphis or New York City?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 44% below New York City, NY's $1,990, mainly because of rent.
How much more do you need to earn to live in Memphis than in New York City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $68,000 in New York City.
Which has lower taxes, Memphis or New York City?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); New York City under New York's (a top state income tax rate of 10.90% and a 4% 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).