Moving to a state
Moving to Tennessee in 2026: Costs, Cities, Taxes
By Sol Lakein, founder of Slower Sundays. Published November 9, 2026.
Moving to Tennessee: the short answer
Moving to Tennessee makes sense if you want to keep more of a salary, buy a home for well under coastal prices and still live near a real city. The state does not tax wages, its everyday prices run below the national average, and more people have moved in from other states than left in every year of the Census data we track. The main questions are which city, and whether your budget can handle Nashville or points you to Knoxville or Chattanooga. This guide covers the costs, the taxes, the migration numbers, the cities, the deadlines after you arrive and the pros and cons of moving to Tennessee.
What it costs to live in Tennessee
Tennessee's overall price level is 91.9 on BEA's 2024 regional price parities, where the US is 100, the 14th lowest of 51 states and DC. Housing is where the savings concentrate: the state's housing index is 79.1, 21% below the national average. The statewide median listed home is $429,450 (Realtor.com, September 2026), 28th lowest of 50, 2% above the US median of $419,250.
On a mortgage, the state median works out to about $2,360 a month in principal and interest, against $4,078 on the New York metro median. Renters pay a median $1,306 for a 2-bedroom with utilities (Census ACS, 2025), and the state's median household income is $75,250 (Census, 2025). By BEA's price parities, a $150,000 New York salary buys what about $122,425 buys in Tennessee.
The Tennessee cities we cover
City costs spread widely around the state average. Nashville is the outlier on the high side, while Knoxville and Chattanooga sit near or below it.
| Metro | Median listed home | Monthly payment | 2-bedroom rent | Price level | Housing index |
|---|---|---|---|---|---|
| Nashville, TN | $533,995 | $2,935 | $1,666 | 96.3 | 104.6 |
| Knoxville, TN | $447,000 | $2,456 | $1,452 | 92.6 | 82.8 |
| Chattanooga, TN | $395,000 | $2,171 | $1,313 | 91.5 | 76.5 |
| New York metro | $742,000 | $4,078 | $1,997 | 112.6 | 148.6 |
Median listed home: Realtor.com via FRED, September 2026. Monthly payment: principal and interest with 20% down at 7.32% (Freddie Mac, week of October 22, 2026), before taxes and insurance. Rent: median gross rent for a 2-bedroom, utilities includedsource. Price level and housing index: BEA regional price parities, 2024, US = 100.
Tennessee vs nearby states
| State | Median listed home | 2-bedroom rent | Price level | Housing index | Income tax on wages |
|---|---|---|---|---|---|
| Tennessee | $429,450 | $1,306 | 91.9 | 79.1 | None on wages |
| North Carolina | $400,000 | $1,346 | 94.3 | 81.4 | 3.99% flat |
| South Carolina | $359,945 | $1,338 | 93.7 | 80.5 | Up to 5.21% |
| Georgia | $389,750 | $1,524 | 96.3 | 88.7 | 4.99% flat |
| New York | $605,000 | $1,729 | 107.9 | 122.2 | Up to 10.9% |
Median listed home: Realtor.com via FRED, September 2026. Rent: Census ACS 2025 1-year, median gross rent for a 2-bedroom. Price level and housing index: BEA regional price parities, 2024, US = 100. Income tax: 2026 rates from state revenue departments, Tax Foundation and EY Tax News; New York's top rate excludes New York City's local income tax.
Tennessee lists homes for more than South Carolina but rents for less, and it is the only state in this group with no tax on wages. For the full state picture, see our Tennessee cost of living page.
Taxes in Tennessee
Tennessee pairs no tax on wages with a high sales tax. Its last individual income tax, the Hall tax, applied only to interest from bonds and notes, and it was repealed for tax periods beginning on or after January 1, 2021source. Wages were never subject to it.
- Income tax: Tennessee does not tax wages. source
- Sales tax: 7% state rate. Local rates are set by county and some incorporated city governments and cannot exceed 2.75%. Food and food ingredients are taxed at a 4% state rate. A state single article rate of 2.75% applies to the portion of a single item priced above $1,600 up to $3,200.source
- Property tax: an average effective rate of 0.5%, about $2,147 a year on a $429,450 home (our arithmetic; your county and city rates decide the real bill).source
- Social Security: not taxed by the state.
For a household moving a coastal salary, the income tax line is the big win. The sales tax is the cost: at 7% state plus up to 2.75% local, a large purchase like furniture for a new house carries a real tax bill, and groceries are taxed too, at a lower 4% state rate. Property tax is low by national standards, though your county and city set the actual rate.
Are people moving to Tennessee?
Yes, and steadily. In the Census estimates, Tennessee gained more residents from other states than it lost in every year from 2015 to 2025, 480,507 in total over those ten years. The latest year, July 2024 to July 2025, brought a net gain of 42,389, the 4th largest of any state. The peak came from July 2021 to July 2022, at 82,316, and the pace has eased since.
| Year (July to July) | Net domestic migration |
|---|---|
| 2015-16 | +32,993 |
| 2016-17 | +42,680 |
| 2017-18 | +42,418 |
| 2018-19 | +37,685 |
| 2019-20 | +46,732 |
| 2020-21 | +46,401 |
| 2021-22 | +82,316 |
| 2022-23 | +60,397 |
| 2023-24 | +46,496 |
| 2024-25 | +42,389 |
Net domestic migration: people who moved to Tennessee from other states minus people who left for other states. US Census Bureau population estimates via Maryland Department of Planning; 2020 to 2025 from Vintage 2025, earlier years from Vintage 2020.
At the metro level, Nashville drew 16,967 net domestic movers in the year to July 2025 (Census Vintage 2025). That demand is a large part of why Nashville housing costs more than the rest of the state.
Which Tennessee cities people pick, and how they differ
The three Tennessee cities we cover answer different questions. Pick by job market, budget and what you want to do on weekends.
Nashville: the job market
Nashville is the big-city option: about 1,204,600 nonfarm jobs (BLS, September 2026), a health care industry the Nashville Area Chamber calls the region's largest employer, and an airport that served a record 26.7 million passengers and 115 nonstop destinations in the year to June 2026source. It is also the expensive choice, with a median listing of $533,995 and a housing index of 104.6. Read Is Nashville a good place to live? for the full picture.
Knoxville: university town by the Smokies
Knoxville is mid-size, with about 458,200 nonfarm jobs and a median listing of $447,000. The University of Tennessee enrolled 40,421 students in fall 2025source, and Great Smoky Mountains National Park, the most visited national park in the country with 11,527,939 visits in 2025source, is an easy day trip. Its housing index of 82.8 is far below Nashville's. See Knoxville's cost of living.
Chattanooga: lowest price, fastest internet
Chattanooga is the smallest of the three, with about 295,300 nonfarm jobs, and the cheapest to buy in, at a median listing of $395,000. Its public utility, EPB, offers fiber internet up to 25 gigabits across its service areasource, which makes it a natural pick for remote workers. Manufacturing is a top-three sector, anchored by a Volkswagen plant with more than 4,000 employeessource. See Chattanooga's cost of living.
Compare them head to head: Knoxville vs Nashville, Chattanooga vs Nashville and Chattanooga vs Knoxville. Our best places to live in Tennessee and cheapest places to live in Tennessee pages rank them on the same data.
A note on Memphis: it appears on our site only through the Start Fresh in West Memphis program, a relocation incentive for West Memphis, Arkansas, run by the City of West Memphis Office of Economic Development. Because that program and its rules are Arkansas's, we do not treat Memphis as a Tennessee city page here.
New-resident deadlines in Tennessee
- Driver's license: within 30 days of becoming a residentsource.
- Vehicle registration: within 30 dayssource.
Registration is handled by your county clerk, per the Tennessee Department of Revenue. For everything else on the move itself, use our moving out of state checklist.
Moving to Tennessee: pros and cons
Pros
- No tax on wages. Tennessee has no individual income tax for 2026 (Tax Foundation).
- Prices below the US average. A price level of 91.9 and a housing index of 79.1 (BEA, 2024).
- Low property tax. An average effective rate of 0.5% (WalletHub, 2026).
- People keep arriving. Net gains from other states every year from 2015 to 2025 (Census Bureau).
- Three distinct city options. A big job market in Nashville, a university and mountain town in Knoxville, and a low-cost outdoor city in Chattanooga.
Cons
- High sales tax. 7% state plus up to 2.75% local, and groceries are taxed at 4% (Tennessee Department of Revenue).
- Nashville is pricey. Its median listing of $533,995 is 24% above the state median (Realtor.com, September 2026).
- Hot summers. July highs average 90.9°F in Nashville, 88.4°F in Knoxville and 90.5°F in Chattanooga (NOAA 1991-2020 normals).
- Smaller job markets outside Nashville. Knoxville and Chattanooga together have fewer nonfarm jobs than the Nashville metro (BLS, September 2026).
The bottom line
Tennessee is one of the strongest choices for households that want to cut taxes and housing costs without moving somewhere remote. If you need a large job market, start with Nashville and budget for its housing. If you work remotely or want more house for the money, look hard at Knoxville and Chattanooga. If you are weighing Tennessee against the Carolinas, read Moving to North Carolina and North Carolina vs South Carolina, or take the quiz to see which city fits your budget.
Data notes: monthly payment assumes 20% down on the median listed home at the Freddie Mac 30-year average of 7.32% and excludes property tax, insurance and HOA dues. Salary comparison uses BEA 2024 regional price parities for Tennessee and the New York metro. City rent figures are metro medians: $1,666 in Nashville, $1,452 in Knoxville and $1,313 in Chattanooga (Census ACS, 2025). Principal and interest on each city's median listing: $2,935, $2,456 and $2,171.