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Cost Of Living in Tennessee

Cost Of Living in Tennessee

IN THIS ARTICLE

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.

Cost Of Living in Tennessee
Cost Of Living in Tennessee

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

Groceries Prices in Tennessee
Groceries Prices 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. 

How much does food cost in Tennessee?

The cost of food for a person in Tennessee is about $3500 per year and for a family of four, the cost averages triple of it i.e. $9100 per year. 

How much does a loaf of bread cost in Tennessee?

A loaf of fresh white bread of 1 lb in Tennessee costs around $3.54. 

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.

Price Of Utilities in Tennessee
Price Of Utilities in Tennessee

Listed below are the typical monthly utility costs in Tennessee.

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

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

How much is an electric bill in Tennessee?

The cost of electricity in Tennessee on average is about $200 per month, which sums up to $2400 per year. This is about 1% higher than the national average. 

How much do utilities cost in Tennessee?

The average utilities cost in Tennessee is about $391 per month depending on the resident’s usage. 

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.

Cost For Healthcare in Tennessee
Cost For Healthcare in Tennessee

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.

How much does Obamacare cost in Tennessee?

The average lowest cost of the bronze plan premium in 2022 is around $340 whereas the average lowest cost of the silver plan premium is $454. 

What is the average cost of health per month in Tennessee?

The average cost of the health of Tennessee residents per month is $508.

How much is health insurance for a family of 4 in Tennessee?

The cost of health insurance for a family of 4 in Tennessee is $1624 which comprises adult individuals and two children.

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 Home Prices
Tennessee Home Prices

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. 

Are house prices dropping in Tennessee?

The house prices are dropping by 20% in Nashville, Tennessee as per the reports by Moodys analytics.

How is the housing market right now in Tennessee?

The housing market in Tennessee is increasing right now as the houses are selling quickly more than they are actual values.

How much are home prices up in Tennessee?

In 2022, the median home value in Tennessee is $350000. The home values have risen up by 27% from the last year in Tennessee. 

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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. 

Education in Tennessee
Education in Tennessee

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. 

How much does public school cost in Tennessee?

Public schools in Tennessee do not charge any tuition fees and less-price meals. 

How much does college cost for 4 years in Tennessee?

The average undergraduate tuition fee for Tennessee Colleges for a period of 4 years is $5,715 for in-state students and $16,601 for out-of-state students for the academic year 2021–2022.

Is the public school in Tennessee free?

Public schools in Tennessee are absolutely free of cost. They do not charge any tuition fees to students.

How much does Tennessee university cost?

The University of Tennessee charges $20,518 – $32,346 for residents who live with their parents, on campus or off campus, and $57,420 – $65,268 for non-residents. These estimated costs are for a full-time undergraduate student studying for 4 years for the academic year 2022-2023. 

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 Tax Rates
Tennessee Tax Rates

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%

What are the income taxes in Tennessee?

Tennessee does not charge an individual income tax but imposes a 6.5% of corporate income tax on employees working in organizations. 

What is the sales tax in Tennessee?

In 2022 the sales tax in Tennessee in Tennessee is 7.0%.

What are the property taxes in Tennessee?

The property tax rate in Tennessee for the year 2022 is 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.

Tennessee Public Transportation
Tennessee Public Transportation

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

Family MakeupAverage 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

How much does public transportation cost per month in Tennessee?

The cost of public transportation in Tennessee averages $60 per month i.e. called the 31-day Express First Pass. 

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.

Average Cost For Energy & Fuels in Tennessee
Average Cost For Energy & Fuels in Tennessee

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.

What is the current gas price in Tennessee?

Currently, the regular and diesel gas price in Tennessee is about $3.33 and $5.183.

What is the average heating bill in Tennessee?

According to EIA, the average heating bill in Tennessee is $125.30 per month. 

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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 89.9100
Grocery 95.5100
Health100.5100
Housing79.5100
Utilities 96.7100
Transportation 90.5100
Miscellaneous 84.7100

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

Cost Of Living in Tennessee FAQs

What is the cheapest rent in Tennessee?

Bolivar city has the cheapest rent in Tennessee of about $500 for a 1-BR flat. 

What is the minimum wage in Tennessee?

The minimum wage in Tennessee for 2022 is $7.25.

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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