50 states · TN

Tennessee cost of living & income (2026)

Quick answer: Tennessee has a cost-of-living index of 88.9 (100 = national baseline), an illustrative estimated annual cost of living of about $44,450, median household income of $71,997, combined average sales tax about 9.55%, and regular gas about $3.537/gal in the June 2026 AAA snapshot used on the hub.

COL index88.9100 = US baseline

Est. annual COL$44,450

Median HH income$71,997

Sales tax (comb.)9.55%

Gas (87 octane)$3.537/galJune 2026 AAA

Largest cityNashville (687,788)

Taxes & economy

Income tax: None

Sales tax: 7% state (combined avg. ~9.55%)

Major industries: Automotive manufacturing, music/entertainment (Nashville), tourism, agriculture, healthcare

Climate snapshot

Summer high ~89°F (July) · Winter low ~28°F (January)

Culture (context)

Country Music Hall of Fame / Grand Ole Opry

Tennessee State Fair (Nashville area)
Bonnaroo Music Festival / major music/cultural events (Manchester)

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What this means for you

What this means for you: a basket priced at 100 on the national baseline is indexed at 88.9 in Tennessee. A salary that buys that basket at the baseline would need about 88.9% of that salary to buy the same basket here. That is index math from this snapshot, not a tax-equalized offer and not your rent.

Compare a salary: Tennessee vs Texas on the explorer.

How to read this page

Read the quick answer for Tennessee's cost-of-living index, estimated annual cost, median income, sales tax, and gas price.
Open the 50-state explorer and compare Tennessee with another state. The salary line multiplies pay by the other index divided by this index.
Use the mortgage, rent, and paycheck calculators with your own numbers. This page does not compute a tax return.

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Related states

Similar cost-of-living index in this dataset:

Arkansas — COL 89.1 (Δ 0.2 index pts)
Iowa — COL 88.6 (Δ 0.3 index pts)
Missouri — COL 88.6 (Δ 0.3 index pts)

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FAQ

What is Tennessee's cost of living index?

Tennessee's cost-of-living index is 88.9 (national baseline 100) in this 2026 classroom snapshot.

What is the estimated annual cost of living in Tennessee?

The explorer lists an illustrative estimated annual cost of living of about $44,450 for Tennessee.

What is median household income in Tennessee?

Median household income in Tennessee is $71,997 in this dataset.

What is the combined average sales tax rate in Tennessee?

The combined average sales tax rate shown for Tennessee is 9.55%. State and local rules vary; see the Tax Foundation citation on the hub.

Does Tennessee have a state income tax?

State income tax in Tennessee: None.

What was regular gas in Tennessee in this snapshot?

87-octane gas is listed at $3.537 per gallon (AAA, June 2026) in the explorer data.

How should a household read Tennessee's cost-of-living index?

The index is 88.9 against a US baseline of 100. A salary that buys a basket at the baseline would need about 88.9% of that salary to buy the same basket in Tennessee in this snapshot. It is not a tax bill, a rent quote, or financial advice.

Sources: Tax Foundation (sales tax), BEA / ACS (income & COL), AAA gas (June 20, 2026). Educational, not financial, tax, or relocation advice.