Cost of living in Tennessee: Statewide affordable housing. No state income tax. Low utility costs. Competitive health care expenses. Reasonable grocery prices. Lower-than-average transportation costs. Economical childcare and education. Varying property taxes by county. Affordable dining options. Diverse economic job opportunities.
Statewide affordable housing
Tennessee faces a significant shortage of affordable housing, with rising population and migration driving up demand, particularly for extremely low-income and Missing Middle households. The state requires thousands of additional affordable housing units, with cities like Memphis and Chattanooga implementing innovative development approaches to address the gap. To learn more about the initiatives underway to tackle this pressing issue, you can visit the Community Development Banking section on JP Morgan's website, which details ongoing efforts and solutions in place to meet the growing need for affordable housing in Tennessee.
No state income tax
Tennessee does not impose a state-level income tax on personal income, including wages, retirement savings, and Social Security benefits, making it a tax-friendly state, especially for retirees and those on a fixed income. For more detailed information on this topic, visit the H&R Block Tax Center.
Low utility costs
Tennessee is known for its relatively low utility costs, with an average electric bill of $149.33 per month, driven by an average residential electricity rate of 12.57ยข/kWh and monthly consumption of 1,188 kWh, which is lower than the national average. Not only does the state benefit from competitive electricity rates, but it also has one of the lowest costs of living regarding utility bills. In fact, utility costs are approximately 92.1% of the national average, and residents can expect to pay around $391 per month for their utility bills, which includes electricity, natural gas, and other fuels. According to the Tennessee Cost of Living Guide, the average electric bill is around $140 per month, with monthly costs for gas and water typically around $101 and $36, respectively. This affordability in utility expenses makes Tennessee an attractive option for residents compared to other states.
Competitive health care expenses
Healthcare costs in Tennessee are relatively competitive, with a typical doctor's visit costing between $82 and $126, and emergency room visits averaging $2,060, which is generally in line with neighboring states. Additionally, Tennessee's healthcare costs are 13% lower than the national average, making it a more affordable option for medical services.
Reasonable grocery prices
In Tennessee, grocery prices are relatively affordable, with the average monthly grocery bill being around $438, which is slightly below the national average. Cities like Knoxville, Chattanooga, and Memphis have grocery costs that are 10.6%, 5.3%, and 5.3% below the national average, respectively. For more detailed information on living expenses in Tennessee, you can explore this in-depth guide on Unbiased to better understand the overall cost of living and how it compares to the national landscape.
Lower-than-average transportation costs
Transportation costs in Tennessee are significantly cheaper than the national average, ranking at 90.2 compared to the U.S. average of 100, making it one of the lower expenses for residents in the state. For more detailed insights, you can visit the Fair Cash Deal website.
Economical childcare and education
In Tennessee, childcare costs vary significantly, with average monthly costs ranging from $610 to $933 for infants, $587 to $867 for toddlers, and $526 to $705 for children over 2 years old, depending on the location. For education, the average annual in-state college tuition is around $16,751, with net costs varying widely based on family income and the specific institution. For a more detailed breakdown of these expenses and insights into managing them, explore the Tennessee Cost Of Living Guide and discover valuable information that can assist you in planning your budget efficiently.
Varying property taxes by county
In Tennessee, property taxes vary significantly by county, with Shelby County having the highest average effective property tax rate at 1.37%, while other counties like Decatur County have much lower rates. For example, Hamilton County has an average effective tax rate of 0.92%, and Williamson County, despite high home values, has a rate of 0.57%. To explore more about how these rates compare and calculate your own, you can visit the Tennessee Property Tax Calculator.
Affordable dining options
Tennessee offers a range of affordable dining options, with restaurants like Greko Greek Street Food, Burger Republic, and Midtown Cafe providing delicious meals at reasonable prices, often under $10, making dining out accessible and budget-friendly.
Diverse economic job opportunities
Tennessee offers a diverse range of job opportunities across thriving industries such as healthcare, technology, manufacturing, agriculture, and tourism, all set against a backdrop of a cost of living below the national average. This combination makes Tennessee an attractive place for both career growth and affordable living. For more insights into the dynamics of these industries, explore the Job Market Insight provided by Tennessee National's website.