Cost of Living in Tennessee
Based on 2 cities we track in Tennessee.
Cost of living in Tennessee is shaped mostly by rent across the 2 cities we track there. A one-bedroom apartment runs around $1,142 a month — about the same as the $1,191 median across the 28 states we track.
Median household income across those cities is $63,204, 12% lower than the $71,716 median across the states we track. Tennessee has no state income tax and a 7% state sales tax.
State Medians
Median 1BR Rent
$1,142
Median Home Value
$270,100
Median Income
$63,204
Avg Temperature
61.3°F
Medians across the Tennessee cities we track — not a statewide population-weighted figure.
State Taxes
State Sales Tax
7%
State Income Tax (top rate)
None
Cities in Tennessee
Compare Tennessee with
Tennessee cost of living — FAQ
- Is Tennessee expensive to live in?
- Tennessee is around the middle of the 28 states we track. Its median one-bedroom rent of $1,142 ranks #18 of 28 and is about the same as the $1,191 median.
- What is the average rent in Tennessee?
- Across the 2 cities we track in Tennessee, average rent runs a studio around $1,109, a one-bedroom around $1,142, a two-bedroom around $1,276, a three-bedroom around $1,557 per month (US Census ACS).
- What is the median home price in Tennessee?
- The median home value across the cities we track in Tennessee is $270,100 — 15% lower than the $317,950 median across the states we track.
- Does Tennessee have a state income tax?
- No — Tennessee has no broad-based state income tax on wages. Its state sales tax rate is 7%; local jurisdictions may add more.
- How much do you need to earn to live in Tennessee?
- To keep a one-bedroom rent of $1,142 near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year. Median household income across the cities we track in Tennessee is $63,204.
Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026 (state taxes).