Tennessee's cost of living index is 91 — 9.0% below the US average of 100. Compare purchasing power and equivalent salaries across states.
CoL Index
91
US avg = 100
vs. National Avg
-9.0%
Less expensive
Median Income
$56,071
Tennessee median household
Equiv. at US Avg
$61,616
Same purchasing power
| CoL Index | 91 | MIT/MERIC composite index (US avg = 100) |
| vs. National | 9.0% | Below average cost |
| Median Household Income | $56,071 | Tennessee median (2023 ACS) |
| National Purchasing Power | $61,616 | Equivalent $ at US avg CoL |
| Overall Category | Moderate | Qualitative classification |
| Population | 6,910,840 | 2020 US Census |
With a cost of living index of 91, Tennessee is 9% below the national average. Lower costs in Tennessee mean your dollar goes further. A salary of $56,071 in Tennessee provides the equivalent purchasing power of $61,616 in a state at the national average.
Housing is typically the largest driver of cost of living differences between states.Tennessee's median home price of $310,000 is near the national median of approximately $310,000. Other factors include state income tax (none in Tennessee), sales tax (7.00% state rate), and local property tax rates (0.71%).
