Tennessee · Population 182,832 · Updated March 2026
How far your income goes in Chattanooga
State-level tax rates that affect your costs
Chattanooga is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 81 (where 100 equals the national median), Chattanooga residents can expect to pay median rent of $1,155/month while earning a median household income of $61,028/year.
The median home value in Chattanooga, TN is $259,200, with typical monthly owner costs around $1,112 including mortgage, insurance, and taxes. The median rent-to-income ratio of 22.7% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Tennessee has no state income tax, which can represent significant savings compared to high-tax states. Combined with a 7.0% sales tax rate and 0.64% effective property tax rate, the overall tax environment helps keep costs manageable in Chattanooga.
Common questions about living costs in Chattanooga
Similar-sized cities to compare
Compare the cost of living in Chattanooga, TN with 299 other major U.S. cities