Is it cheaper to live in Memphis or Sacramento?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 36% below Sacramento, CA's $1,740, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $57,000 in Sacramento.

Which has lower taxes, Memphis or Sacramento?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Sacramento under California's (a top state income tax rate of 13.30% and a 7.25% state sales tax).

Memphis vs Sacramento Cost of Living 2026

Memphis

Tennessee

$1,110/mo est.

Sacramento

California

$1,740/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 $1,740 in Sacramento, CA. Overall, Memphis, TN is roughly 36% cheaper to live in day-to-day than Sacramento, CA, driven mainly by rent.

Median household income is $51,211 in Memphis, TN and $83,753 in Sacramento, CA — about 39% higher in Sacramento, CA. Tennessee has no state income tax and a 7% state sales tax; California has a top state income tax rate of 13.30% and a 7.25% state sales tax.

Memphis, TN

Sacramento, CA

Rent

Studio

$877

$1,259

+44% in Sacramento, CA

1 Bedroom

$948

$1,418

+50% in Sacramento, CA

2 Bedroom

$1,073

$1,742

+62% in Sacramento, CA

3 Bedroom

$1,281

$1,973

+54% in Sacramento, CA

Buying a Home

Median Home Value

$157,100

$484,600

+208% in Sacramento, CA

Income

Median Household Income

$51,211

$83,753

+64% in Sacramento, CA

Metro Median Wage (annual)

$46,890

$59,750

+27% in Sacramento, CA

People & Lifestyle

Median Age

34.3 yr

35.7 yr

+1.4 yr in Sacramento, CA

Homeownership

46.0%

51.5%

+5.5 pp in Sacramento, CA

Bachelor's+ (25+)

28.2%

36.4%

+8.2 pp in Sacramento, CA

Avg Commute

21.3 min

25.6 min

+4.3 min in Sacramento, CA

Crime (per 100k/yr)

Violent Crime

2,507.5

757.2

+70% in Memphis, TN

Property Crime

6,965.8

2,615.3

+62% 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

61.0°F

+2.1°F in Memphis, TN

Annual Precipitation

53.7 in

18.5 in

+35.2 in in Memphis, TN

Gas

Regular Gasoline

$4.35/gal

$5.91/gal

+36% in Sacramento, CA

Area: Midwest (PADD 2) vs California.

Public Transit

Base Fare (one-way)

$1.75

$2.50

+43% in Sacramento, CA

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

Utilities

Electricity (¢/kWh)

15.1

33.4

+121% in Sacramento, CA

Natural Gas ($/MCF)

$15.54

$20.72

+33% in Sacramento, CA

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

Groceries

Milk (gal)

$4.16

$4.37

+5% in Sacramento, CA

Bread (lb)

$1.73

$2.10

+21% in Sacramento, CA

Eggs (doz)

$2.19

$2.25

+3% in Sacramento, CA

Ground Beef (lb)

$6.56

$7.23

+10% in Sacramento, CA

Chicken (lb)

$1.90

$2.14

+12% in Sacramento, CA

Bananas (lb)

$0.61

$0.74

+21% in Sacramento, CA

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

State Taxes

Sales Tax (TN / CA)

7.25%

+0.3 pp in CA

Income Tax (top rate)

None

13.30%

+13.3 pp in CA

Memphis vs Sacramento — FAQ

Is it cheaper to live in Memphis or Sacramento?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 36% below Sacramento, CA's $1,740, mainly because of rent.
How much more do you need to earn to live in Memphis than in Sacramento?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $57,000 in Sacramento.
Which has lower taxes, Memphis or Sacramento?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Sacramento under California's (a top state income tax rate of 13.30% and a 7.25% 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).