Cost of Living: Knoxville, TN vs Tempe, AZ (2026)

Knoxville

Tennessee
74
VS

Tempe

Arizona
120

Knoxville is 38% cheaper than Tempe.

$1,116/mo ↓ 31%
Median Rent
$1,623/mo ↑ 45%
$50,994/yr ↓ 34%
Median Income
$77,643/yr ↑ 52%
$214,000 ↓ 49%
Home Value
$421,900 ↑ 97%
$1,075/mo ↓ 31%
Owner Costs
$1,554/mo ↑ 45%
193,721
Population
186,419

Tax Comparison

0%
Income Tax
2.5%
7.0%
State Sales Tax
5.6%
0.64%
Property Tax
0.62%

Affordability

26.3%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Knoxville, TN and Tempe, AZ, the overall cost of living indices are 74 and 120 respectively (national median = 100). Rent is $507/month cheaper in Knoxville, saving renters about $6,084/year.

Median household income is $26,649/year higher in Tempe. Home values also differ significantly — the median in Knoxville is $214,000 compared to $421,900 in Tempe.

Tennessee has no state income tax, giving Knoxville residents a significant tax advantage over Arizona's 2.5% rate.

Frequently Asked Questions

Knoxville vs Tempe — common questions

Is Knoxville or Tempe cheaper to live in?
Based on our cost index, Knoxville is cheaper to live in with an index of 74 compared to 120 (US average = 100).
What is the rent difference between Knoxville and Tempe?
Median rent in Knoxville is $1,116/month and in Tempe it's $1,623/month — a difference of $507/month.
Which city has higher income, Knoxville or Tempe?
Median household income is $50,994 in Knoxville and $77,643 in Tempe. Median household income is $26,649/year higher in Tempe.
How do taxes compare between Tennessee and Arizona?
Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to Knoxville or Tempe?
It depends on your priorities. Knoxville has a cost index of 74 with median rent of $1,116/mo, while Tempe has a cost index of 120 with rent of $1,623/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Knoxville details → View Tempe details →

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