Cost of Living in Tennessee
Overall index: 90.1 — ranked #44 of 51 (below average cost).
Where your money goes in Tennessee
Estimated spending breakdown on a $75,000 salary in Tennessee
Estimated annual spending: $57,433($17,567 remaining)
Metro areas in Tennessee
What things cost in Tennessee
| Item | Tennessee | US Average | Difference |
|---|---|---|---|
| Median home price | $310,000 | $360,000 | $-50,000 |
| Average 2BR rent | $1,154/mo | $1,400/mo | $-246 |
| Gas (regular) | $3.14/gal | $3.50/gal | $0.36 |
| Electric bill | $97/mo | $137/mo | $40 |
| Infant childcare | $12,249/yr | $13,500/yr | $1,251 |
| Dozen eggs | $4.79 | $4.95 | $0.16 |
| Monthly groceries | $397/mo | $410/mo | $13 |
Sources: AAA gas prices, EIA electricity, Zillow ZHVI, Child Care Aware, MERIC/C2ER indices. Eggs and groceries estimated from MERIC grocery index applied to BLS averages.
Cost of living index by category
National average = 100 for each category
Salary equivalent: Tennessee vs national average
What a salary in Tennessee is actually worth in national-average purchasing power.
| Salary | Purchasing power | Difference |
|---|---|---|
| $50,000 | $45,050 | $-4,950 |
| $75,000 | $67,575 | $-7,425 |
| $100,000 | $90,100 | $-9,900 |
| $125,000 | $112,625 | $-12,375 |
| $150,000 | $135,150 | $-14,850 |
| $200,000 | $180,200 | $-19,800 |
Negative difference means your money goes further in Tennessee than the national average.
Compare Tennessee with other states
FAQ
What is the cost of living in Tennessee?
Tennessee has an overall cost-of-living index of 90.1, making it below average cost (ranked #44 of 51 states, where #1 is most expensive). The national average is 100. Housing is the biggest factor — median home prices are $310,000 and average 2-bedroom rent is $1,154/month.
Is Tennessee expensive to live in?
No, Tennessee is more affordable than most states with an overall index of 90.1 (average = 100). Housing is particularly affordable at 82.4% of the national average.
How much does housing cost in Tennessee?
The median home price in Tennessee is $310,000 and average 2-bedroom rent is $1,154/month. Tennessee's housing index is 82.4 (national average = 100), meaning housing is 17.599999999999994% below the national average. Costs vary significantly by metro area — Nashville has a housing index of 108.
How much are groceries in Tennessee?
Tennessee's grocery index is 96.8 (national average = 100). A dozen eggs costs approximately $4.79 and a typical monthly grocery bill for a household runs about $397, compared to the national average of $410.
What is the average electric bill in Tennessee?
The average monthly electric bill in Tennessee is $97 based on the state's residential rate of 10.9¢/kWh and average household consumption of 886 kWh/month (EIA 2024).
How much does childcare cost in Tennessee?
Center-based infant childcare in Tennessee averages $12,249/year ($1,021/month). The national average is approximately $13,500/year. This data is from Child Care Aware of America's 2024 report.
What salary do I need to live comfortably in Tennessee?
A $75,000 salary in Tennessee has the same purchasing power as $83,241 at the national average cost of living. Your salary goes about as far as the national average. Use the calculator above with your specific salary to see how it compares.
How does cost of living vary by city in Tennessee?
Major metro areas in Tennessee include: Nashville (101.5). Costs can vary significantly from the statewide average of 90.1. Click on a city above for detailed metro-level data.
Where does this data come from?
Cost-of-living indices are from the MERIC/C2ER 2025 Annual Average. Dollar amounts use AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), Zillow home values (2024-2025), and BEA Regional Price Parities.
Related tools
- Tennessee Paycheck Calculator — Calculate take-home pay after Tennessee taxes
- House Affordability in Tennessee — How much house can you afford?
- Take-Home Pay by State — Compare Tennessee take-home pay across all 50 states
- Compare Job Offers — Factor in salary, equity, and cost of living
- Compare any two states
Based on MERIC/C2ER 2025 indices, AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), and Zillow home values (2024-2025). Individual costs vary by city, neighborhood, and lifestyle.