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Are you planning to immigrate or retire in Tennessee, or just curious about the costs of living there? Then this guide is just for you. The area is known for its stunning scenery, rich culture, and warm people. What is the cost of living in Tennessee? This blog will inform you.
Tennessee is popular for its low taxes and cheap housing. It’s among the most inexpensive states in America. Tennessee boasts urban areas, peaceful mountains, and a deep heritage. Its affordability, however, is the main draw. This is crucial for anyone moving for work, retirement, or a change.
What is the Cost of Living in Tennessee?
For those wanting a good life without overspending, Tennessee is a top choice in today’s tough housing and job markets. With over 6.9 million people, it is famous for its culture, beauty, and affordability.
In 2021, living in Tennessee costs about $42,469 a year. This covers housing, utilities, food, healthcare, and transport. Costs vary. Cities like Nashville and Knoxville are more expensive than smaller towns. Yet, Tennessee remains affordable. Low taxes, cheap housing, and good resources make it appealing.
Read more: What is the Cost of Living in Delaware?
What Are Housing Costs in Tennessee?
Household expenses are considered one of the major expenditures for every individual. However, Tennessee is cheaper. Its housing costs are 18% lower than the average in most states, making it attractive for new residents. The average home in Tennessee costs about $291,354, but prices vary by location.
- Memphis: $148,368.
- Nashville: $426,695
- Knoxville: $324,261
- Chattanooga: $280,686
For renters, the national average is about $1,702 per month.
How Much Taxes Do I Pay in Tennessee?
The state of Tennessee has no income tax, so residents can save more money. However, it has a sales tax of 7%. Including local taxes, the sales tax can reach 9.75%, which attracts workers and retirees.
Tennessee’s average property taxes are 0.64% less than the national average, making home buying relatively inexpensive. The combination of no income tax, a relatively low sales tax, and a low property tax suggests that Tennessee is a very tax-friendly state. It is ideal for retirees and anyone who has a fixed income or is out to save.
Read more: What is the Cost of Living in Wisconsin?
How to Manage Cost of Living in Tennessee?
The cost of living in Tennessee needs a smart budget. Here are some tips:
Choose the Right Location: Tennessee has options, from busy Nashville to affordable small towns. Research housing and costs in different areas. Small towns are usually cheaper, while cities require a bigger budget. Match your lifestyle needs with what you can afford.
Save on Housing: Housing costs vary. Look for cheaper areas or consider sharing a place. Energy-efficient homes can cut utility bills. Research can lead to affordable, quality housing.
Use Local Resources: Tennessee offers free or cheap entertainment. State parks, community events, and festivals are great options. Libraries provide books and more. Explore local resources to save on leisure expenses.
Track Your Finances Regularly: Monitor your finances to manage costs. Review your budget and spending regularly. Identify areas to cut back. Tools like Beem make tracking easy. Set savings goals and maintain control.
Utility Expenses in Tennessee: What to Expect
Utility costs in Tennessee are 9% below the national average. This makes them affordable. Residents spend about $431 a month on utilities. This includes energy ($130.98), water ($43), natural gas ($66), internet ($30), phone services ($114), and streaming ($47.50).
Tennessee’s hot summers and mild winters help keep these costs down. The state’s low energy rates also contribute to this affordability. Residents can save money by being energy-efficient.
Grocery Prices and Food Costs in Tennessee
Grocery and food costs in Tennessee are similar to the national average. On average, Tennesseans spend $346 monthly on groceries, especially in Nashville. Food prices vary by location and type in Tennessee.
Basic food items are priced reasonably.
- Milk: $0.98 per liter.
- Bread: $3.02 per loaf.
- Potatoes: $2.93 per kilogram.
- Bananas: $1.62 per kilogram.
- Tomatoes: $4.67 per kilogram.
Taking advantage of sales and buying local produce helps. Tennessee’s low prices make quality food accessible without financial strain.
Read more: What is the Cost of Living in Iowa?
Transportation Costs in Tennessee
Transportation in Tennessee is affordable, with an adult spending over $5,400 annually. Here are some costs:
- A local ticket: $1.82
- Monthly pass: $45.60
- Gas: $0.83 per liter
- A taxi ride: $15.70 for 8 km
How Much Does Healthcare Cost in Tennessee?
Tennessee’s healthcare is 13% cheaper than the national average. This is why, for people, quality care is inexpensive. Costs vary based on family size, employment, and coverage type.
For example, a single adult pays about $3,213 a year. A couple, with one working, spends around $6,943. Tennessee offers a mix of affordable services and insurance, ensuring residents get quality care that fits their budgets and financial goals.
What Are Education and Childcare Costs in Tennessee?
In Tennessee, education and childcare are cheaper than in many other states. The average cost for one child is $6,926 a year, and families with two children should expect to pay about double.
Tennessee’s public schools offer low-cost education funded by state and local taxes. Likewise, its public universities and community colleges provide affordable tuition, making quality education accessible for families and individuals in the state.
Read more: What is the Cost of Living in Louisiana?
Entertainment and Leisure Expenses in Tennessee
Tennessee’s entertainment is 6% cheaper than the national average, making it ideal for affordable fun. Tennessee’s low costs allow residents to enjoy various activities without overspending.
For paid activities, costs remain low.
- Gym membership: $36.30 per month.
- Movie ticket: $13.30.
- Haircut: $20.90
- Jeans: $49.90
- Sneakers: $87.70
How Much Does It Cost to Live in Tennessee?
Tennessee’s average monthly cost is $2,159, which is quite low. This includes housing, utility, groceries, transport, health, and leisure. These costs are 10% below the USA average, which is a selling point for many people trying to move there.
With an average post-tax salary of $4,272, most residents can cover expenses and save or spend, ensuring financial stability in a cost-effective state.
How Beem Can Help Manage Costs in Tennessee
Beem’s BFF Budget Planner lets you spend, save, plan, and protect your money like an expert with on-point financial insights and recommendations in Tennessee. By monitoring spending, users can spot saving opportunities. Beem also provides local insights. It shows various cities’ average rent, utilities, transport, and grocery costs, helping users create personalized plans. Download the app here!
Beem simplifies financial planning by providing updates and strategies for managing costs like housing, groceries, utilities, and transportation. Its simple design helps users track spending, easing financial worries. Beem also supports users in planning for the future or handling daily costs.
Read more: What is the Cost of Living in Kansas?
Conclusion
Tennessee boasts a high quality of life at a lower cost than many states. It offers affordable housing, healthcare, and low utility and grocery bills, giving residents great value. Understanding these costs can help people make better moving or budgeting decisions. This can also help you understand the cost of living in Tennessee.
However, managing your budget is crucial to maximizing your money. Tools like Beem are invaluable. Beem helps you budget, track expenses, and save. It’s perfect for those moving to Tennessee or planning monthly costs. Beem makes achieving financial goals easy.
FAQs for What is the Cost of Living in Tennessee?
What is the cost of living in Tennessee?
Tennessee’s average cost of living is $42,469 yearly or $2159 monthly. This figure is about 10% lower than the general average, making it very affordable. It covers housing, utilities, groceries, transport, and healthcare expenses. Costs vary by region and personal choices.
How do housing costs in Tennessee compare to the national average?
Housing in Tennessee is 18% lower than the average federal rate. The average house price is $291,354. However, prices vary. For instance, a house in Memphis goes for an average of $148,368, while in Nashville, it averages $426,695. Renters also find inexpensive options, making Tennessee attractive to buyers and renters.
Are utilities expensive in Tennessee?
Residents pay about $431 monthly for electricity, water, and internet services. Costs can vary based on weather and energy use. However, the cost of utilities is lower than in other states. 9% less than the national average.
What are the transportation options and costs in Tennessee?
Tennessee’s transportation is affordable. Adults spend about $5,400 annually, and gas prices are usually lower than the national average. Public transit is available in Nashville, but personal cars are often necessary in rural areas.
How much should I budget for groceries in Tennessee?
Grocery costs in Tennessee are 6% lower than the average across the US. For Nashville, it means a maximum expenditure of $346 every month. Overall, it closely matches national trends. Meal planning and shopping locally can save even more.
