Is it cheaper to live in Memphis or Raleigh?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 26% below Raleigh, NC's $1,490, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $53,000 in Raleigh.

Which has lower taxes, Memphis or Raleigh?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% state sales tax).

Memphis vs Raleigh Cost of Living 2026

Memphis

Tennessee

$1,110/mo est.

Raleigh

North Carolina

$1,490/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 $1,490 in Raleigh, NC. Overall, Memphis, TN is roughly 26% cheaper to live in day-to-day than Raleigh, NC, driven mainly by rent.

Median household income is $51,211 in Memphis, TN and $82,424 in Raleigh, NC — about 38% higher in Raleigh, NC. Tennessee has no state income tax and a 7% state sales tax; North Carolina has a top state income tax rate of 3.99% and a 4.75% state sales tax.

Memphis, TN

Raleigh, NC

Rent

Studio

$877

$1,301

+48% in Raleigh, NC

1 Bedroom

$948

$1,323

+40% in Raleigh, NC

2 Bedroom

$1,073

$1,462

+36% in Raleigh, NC

3 Bedroom

$1,281

$1,715

+34% in Raleigh, NC

Buying a Home

Median Home Value

$157,100

$377,800

+140% in Raleigh, NC

Income

Median Household Income

$51,211

$82,424

+61% in Raleigh, NC

Metro Median Wage (annual)

$46,890

$51,990

+11% in Raleigh, NC

People & Lifestyle

Median Age

34.3 yr

34.7 yr

+0.4 yr in Raleigh, NC

Homeownership

46.0%

51.2%

+5.2 pp in Raleigh, NC

Bachelor's+ (25+)

28.2%

52.9%

+24.7 pp in Raleigh, NC

Avg Commute

21.3 min

23.4 min

+2.1 min in Raleigh, NC

Crime (per 100k/yr)

Violent Crime

2,507.5

491.5

+80% in Memphis, TN

Property Crime

6,965.8

2,838

+59% 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

60.6°F

+2.5°F in Memphis, TN

Annual Precipitation

53.7 in

46.0 in

+7.7 in in Memphis, TN

Gas

Regular Gasoline

$4.35/gal

$4.30/gal

+1% in Memphis, TN

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$1.75

$1.25

+29% in Memphis, TN

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

Utilities

Electricity (¢/kWh)

15.1

16.0

+6% in Raleigh, NC

Natural Gas ($/MCF)

$15.54

$17.50

+13% in Raleigh, NC

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

Groceries

Milk (gal)

$4.16

about equal

Bread (lb)

$1.73

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$6.56

about equal

Chicken (lb)

$1.90

about equal

Bananas (lb)

$0.61

about equal

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

State Taxes

Sales Tax (TN / NC)

4.75%

+2.3 pp in TN

Income Tax (top rate)

None

3.99%

+4.0 pp in NC

Memphis vs Raleigh — FAQ

Is it cheaper to live in Memphis or Raleigh?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 26% below Raleigh, NC's $1,490, mainly because of rent.
How much more do you need to earn to live in Memphis than in Raleigh?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $53,000 in Raleigh.
Which has lower taxes, Memphis or Raleigh?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% 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).