Cost of Living in Tennessee 2026 — Housing, Income & Taxes

📊 Tennessee at a Glance — 2026

Cost of Living Index

US average = 100 · Slightly Below Average

Median Household Income

$57,000

Source: U.S. Census Bureau ACS

Average 1BR Rent

$1,200/mo

Source: Zillow Observed Rent Index

State Income Tax

None — 0%

No state income tax

Average Home Price

$310,000

Source: Zillow Home Value Index

Salary Needed (30% rule)

$48,000

To keep housing under 30% of income

📈 Tennessee vs the National Average

Cost of Living

Tennessee runs 9% below the national average (index 91 vs. the U.S. baseline of 100). Tennessee has seen some of the fastest population growth in the country, with Nashville's housing costs rising quickly as a result. On the tax side, Tennessee applies no state income tax on wages, a major factor in the state's rapid in-migration.

💡 What Salary Do You Need in Tennessee?

Using the 50/30/20 budget rule, housing should cost no more than 30% of your gross income. With average rent at $1,200/month in Tennessee, you need roughly $48,000/year to live comfortably without being housing-cost-burdened.

Find out exactly how much you take home after Tennessee taxes

💰 Calculate Tennessee Take-Home Pay → 🏡 See How Much Home You Can Afford →

Is Tennessee expensive to live in?

Tennessee's cost of living index is 91, where 100 is the U.S. average — that's 9% below the national average. Tennessee has seen some of the fastest population growth in the country, with Nashville's housing costs rising quickly as a result. The biggest local industries are healthcare management (Nashville), automotive manufacturing, and music and entertainment, centered around Nashville and Memphis.

What is the average rent in Tennessee in 2026?

A 1-bedroom apartment in Tennessee averages $1,200/month as of 2026 (Zillow Observed Rent Index). That's set against a median household income of $57,000/year, so rent alone runs roughly 25% of the typical household's pre-tax income.

What salary do you need to live in Tennessee?

Following the standard 30%-of-income guideline for housing, you'd want roughly $48,000/year to cover Tennessee's average rent comfortably. That's a general rule of thumb, not a hard rule — your real number depends on debt, family size, and where in Tennessee you're looking. Our free paycheck calculator shows your actual take-home pay after Tennessee taxes.

Does Tennessee have a state income tax?

Tennessee applies no state income tax on wages, a major factor in the state's rapid in-migration. Use our free paycheck calculator to see exactly how that affects your specific take-home pay.

🔗 More Free Tools

💰 PayCalc Pro — See your take-home pay after Tennessee taxes 🏡 HomeBuy Calc — How much home can you afford in Tennessee? 📊 Compare All 50 States — Cost of Living by State 2026

Cost of Living in Tennessee 2026 — Full Guide

Tennessee's cost of living index sits at 91, meaning it runs 9% below the national average. Tennessee has seen some of the fastest population growth in the country, with Nashville's housing costs rising quickly as a result.

Tennessee's Economy

Tennessee's economy centers on healthcare management (Nashville), automotive manufacturing, and music and entertainment, with most of that activity concentrated around Nashville and Memphis. That local economic base shapes everything from job availability to how quickly housing supply responds to demand — a state built around a few large employers behaves very differently, cost-wise, than one with a diversified metro economy.

Housing Costs in Tennessee

The average rent for a 1-bedroom apartment in Tennessee is approximately $1,200 per month in 2026. Average home values sit around $310,000. Tennessee has seen some of the fastest population growth in the country, with Nashville's housing costs rising quickly as a result.

Taxes in Tennessee

Tennessee applies no state income tax on wages, a major factor in the state's rapid in-migration. Combined with federal taxes, this determines your real take-home pay — use our free paycheck calculator to see the exact impact on your specific salary rather than relying on a statewide average.

Data Sources

Cost of living index data is based on the Council for Community and Economic Research (C2ER) methodology. Income figures are from the U.S. Census Bureau American Community Survey (ACS). Rent data is sourced from the Zillow Observed Rent Index. All figures represent approximations and should be verified with official sources for financial planning.

All data is for informational purposes only and is not financial or legal advice.

Cost of Living inTennessee 2026