Cost Of Living in Tennessee

You might be wondering why are people relocating to Tennessee? Well, it is no surprise that the volunteer state has many things to offer and is greatly beloved by visitors as it’s  the land of the high smoky mountains, Southern barbecue, delicious whisky, the vols, Dollywood, and many more.

The Volunteer State’s lack of a state income tax and its sixth-lowest cost of living in the nation are both appealing factors. Because of this, many people find ways to settle down in the state. But before relocating don’t you think you should know, what is the cost of living in Tennessee?

Here we present you detailed information regarding Tennessee cost of living, so read the full article below!

Is the cost of living cheap in Tennessee?

Tennessee has a cheap cost of living when compared to other US states. The average cost of living is very low. As per the  2022 cost of living index, the state ranks #6 place for its lowest living costs which makes it one of the pros among the retiring in Tennessee pros and cons.

Is Maine expensive to Tennessee?

Tennessee is 6% less costly than Maine. If you choose to live in Tennessee instead of Maine you would pay 18% less on food, 13% less on groceries, 6.3% more on transportation, 14% less in housing, 18% more for healthcare, 14% less in sports, and entertainment, and 6% less in clothing.

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Cost of Living in Tennessee

Does Tennessee have a high cost of living? In a nutshell, no, Tennessee has comparatively low average living expenses. Tennessee has the sixth-lowest cost of living in the US, according to the 2021 Cost of Living Index. Therefore, as far as the cost of living in Tennessee is concerned, the 10 things to know before moving to Tennessee are as follows:

1. Groceries Prices in Tennessee

Tennessee’s average monthly cost for groceries is $290 per person. For a family of four, the average cost for food and groceries can cost up to $760 per month. Your grocery costs will be a significant factor in determining your cost of living in Tennessee. 

Every individual’s food prices in Tennessee vary by city. For a gallon of milk residents in Memphis pay $3.21, and residents of Chattanooga pay slightly less i.e. $3.09. 

2. Price Of Utilities in Tennessee

Utilities like energy, gas, garbage, and cell phone use ranges from 3% lower than the national average.  Tennessee’s typical utility bill is $391 per month. Although they’re not the most exciting things to calculate, utilities are a regular one that you’ll need to budget for.

Listed below are the typical monthly utility costs in Tennessee.

Utility	Average Tennessee Bill
Electricity	$126
Gas	$100
Cable & Internet	$122
Water	$43

Source: https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf 

3. Cost For Healthcare in Tennessee

The 2020 Bureau of Economic Analysis study states that the average annual cost of healthcare per person in Tennessee is $6,295.

However, your real costs may be significantly different based on location, medical needs, and insurance coverage which might affect how much is spent on healthcare.

4. Tennessee Home Prices

According to Redfin the average home value in Tennessee is around $420,000. Tennessee houses have received great appreciation values recently. From the reports of NeighbourhoodScout, it is claimed that from 2012 to 2018 house values have increased by 6.43% annually. 

Tennessee’s average rent ranges from $746 to $1,800 per month. It is not surprising that the average property price is on the low side given that Tennessee is one of the most affordable states to live in. 

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5. Education in Tennessee

Tennessee has been ranked 37th by the education week’s annual report card where it got an overall grade of 70.1 out of 100.

The education system of Tennessee was graded based on three indices which include: the success rate financial system of the school and the Pre-kindergarten to 12 achievement index. 

Tennessee’s highly ranked University, Vanderbilt charges around $85,000 in total for tuition fees and additional expenses including $935 for admission into 1st-year batches. 

The state also provides student loans for higher education to those students who have less than average annual income. 

6. Tennessee Tax Rates

How does the tax system in Tennessee compare? There is no personal income tax in Tennessee. Tennessee charges a gross receipts tax and has a corporate income tax rate of 6.50 percent. 

Tennessee imposes a state sales tax of 7.00 percent, a local maximum sales tax of 2.75 percent, and an average state and local sales tax of 9.55 percent.

• Individual Taxes: 7.6%
• Business Taxes: 6.5%
• Sales Taxes: 7.0%
• Property Taxes: 0.68%

7. Tennessee Public Transportation

Tennessee’s annual average transportation costs range from $5,113 to $13,896. The cost of traveling can add up, particularly if you have a large family.

Here is a basic overview of how annual transportation expenditures can change depending on family size in Tennessee.

Family Makeup	Average Annual Transportation Cost
One adult, no children	$5,113
Two working adults, no children	$9,378
Two working adults, two children	$13,896

Source: https://www.bts.dot.gov/sites/bts.dot.gov/files/states2020/Tennessee.pdf 

How much is a bus pass in Tennessee?

The cost of public bus passes in Tennessee are as follows:

• One right pass –  $1
• One-day pass –  $2
• 30-day pass – $30
• 20 ride pass – $15

8. Average Cost For Energy & Fuels in Tennessee

On average, the residents of Tennessee spend around $2350 per year i.e. 1.5% higher than the US average. Tennessee’s standard unleaded gasoline costs $3.42 a gallon on average.

The average price of gas in Rutherford County, according to WGNS, was $3.27 a gallon at 30 different gas stations. Starting this week, the national average for a gallon of gas is $3.81.

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9. Miscellaneous Things in Tennessee

Here is a breakdown of the cost of miscellaneous things in Tennessee:

• Meal in a restaurant (single individual): $20
• Imported beer: $5 -$8
• Cappuccino: $5
• Milk (1 liter): $1.02
• Rice (1 kg): $4.64
• Chicken: $16.90
• Fruits: $1.902 – $6.03
• Gasoline: $1.08
• Vegetables: $ 2.15 – $4.85
• Fitness club monthly fees: $67
• Movie ticket: $16
• Slow sports club: $13
• Clothes: $30 – $65
• Shoes: $70 – $120

10. Overall Cost Of Living in Tennessee

Tennessee’s average cost of living is about 89.9 out of the US average of 100. The amount less than 100 depicts Tennessee is cheaper than the USA average and vice versa means Tennessee is more costly. 

Cost of living indices	Tennessee	United States
Overall	89.9	100
Grocery	95.5	100
Health	100.5	100
Housing	79.5	100
Utilities	96.7	100
Transportation	90.5	100
Miscellaneous	84.7	100

Source: https://www.tn.gov/content/dam/tn/finance/budget/documents/2023BudgetDocumentVol1.pdf 

Cost Of Living in Tennessee FAQs

What factors are included in estimating your cost of living in Tennessee?

The factors that are included in estimating the cost of living in Tennessee are as follows:

• Your career
• Salary
• Real estate market
• House affordability
• Transportation expenses
• Food prices
• Entertainment costs and more. 

Conclusion

Tennessee is renowned for its blues culture and country music events. The inexpensive cost of living in Tennessee will make you happy and you can enjoy music like country, bluegrass, or rock ‘n’ roll. Maybe that’s enough to make you consider relocating there.

Tennessee has about 207 sunny days per year, which is two more than the national average. If you question us, does it snow in Nashville Tennessee, Of course, it does, but not as extreme as the tornados? If you like sunny days but also want to experience all the seasons, Tennessee is a great place for you.

If you’re considering relocating to Tennessee, you’ve certainly wondered how “The Volunteer State” stacks up against the rest of the nation in terms of the necessities of living. We’ve examined the data ourselves and put together a thorough reference to the average cost of living in Tennessee, so you can stop wondering.

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