Tennessee · Population 684,298 · Updated March 2026
How far your income goes in Nashville
State-level tax rates that affect your costs
Nashville is more expensive than the national average. Higher housing costs are typically the primary driver. With a cost index of 110 (where 100 equals the national median), Nashville residents can expect to pay median rent of $1,486/month while earning a median household income of $75,197/year.
The median home value in Nashville, TN is $383,100, with typical monthly owner costs around $1,471 including mortgage, insurance, and taxes. The median rent-to-income ratio of 23.7% 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 Nashville.
Common questions about living costs in Nashville
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