Understand the cost of living in Tennessee including housing, taxes, insurance, and everyday expenses. Compare Tennessee costs to the national average.
Tennessee has a cost of living index of 90, where 100 represents the national average. This means living in Tennessee is 90 percent of the national average cost. The median household income in Tennessee is $59,700, which should be weighed against local expenses.
Housing is typically the largest expense for Tennessee residents. The median home price is $290,000, with property taxes averaging 0.64% and home insurance at $1,900 per year. Renters also face costs influenced by the state's overall cost of living index of 90.
Tennessee residents pay a top income tax rate of 0%, a sales tax of 7%, and property taxes of 0.64%. Tennessee does not levy a state income tax, making it especially attractive for high earners. These tax rates play a major role in the overall cost of living and your household budget.
Auto insurance in Tennessee averages $1,680 per year, which is a significant ongoing expense. Combined with fuel, maintenance, and commuting costs, transportation can account for a notable portion of the Tennessee household budget.
With a cost of living index of 90, Tennessee ranks among states that are 90 percent of the national average. The median income of $59,700 and median home price of $290,000 provide useful benchmarks for comparison. Use CalcHubb's cost of living calculator to compare Tennessee with any other state.
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