A+
8%
Overall NAT. AVG.
10%
Goods & Services NAT. AVG.
6%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Chattanooga Tennessee National
Cost of living9289100
Goods & Services9094100
Groceries9798100
Health care9288100
Housing9480100
Transportation8889100
Utilities9393100

An Overview of Cost of Living in Chattanooga, TN

The cost of living in Chattanooga affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Chattanooga is 92, which is 8% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

Everyday expenditures like food, housing, goods and services, transportation and health care in Chattanooga are priced in a manner consistent with other areas. This means that residents of Chattanooga can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

What Do Locals Say About the Cost of Living in Chattanooga?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 20 locals to understand their opinions on the cost of living in Chattanooga. The results indicated that 70% found it reasonably priced with decreasing prices of goods and services, while 30% viewed it as quite expensive, with increasing prices.

Is Chattanooga Affordable?

Is Chattanooga affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Chattanooga, for instance, where the median home price falls 5.3% lower than the national average, and monthly rent rates are 6.1% lower than usual. Additionally, median income levels contribute to the equation, with Chattanooga flaunting a median household income of $47,165, 14.7% lower than the national norm.

What Factors can Influence the Cost of Living in Chattanooga?

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Chattanooga comes in at 7.5% lower than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Chattanooga, the standard sales tax rate starts at 7%, and the income tax rates commence at 0%.

Where is the Data From?

The cost of living in Chattanooga, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Chattanooga is 4% higher than the Tennessee average
  • The cost of living in Chattanooga is 8% lower than the national average
  • Chattanooga housing is 6% lower than the national average
  • Tennessee general sales tax is 37% higher than the national average
  • Tennessee state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Chattanooga

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Compare Chattanooga, TN Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$64,305$5,359$1,500$1,929
      Renters$34,189$2,849$798$1,026
      A good way to judge both the affordability of the housing and the cost of living in Chattanooga is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Chattanooga has a median income of about $64,305 for people who own homes. Based on that number, a maximum of $1,500 should be spent on expenses related to housing. Renters have a slightly different median income, which is $34,189. Based on this average, renters should spend no more than $798 on all rental costs if they want to maintain a non-impoverished standard of living.

      Tennessee Sales Tax

      State General Sales Tax With Max Surtax
      Tennessee 7% 9.75%

      Tennessee Income Tax

      State Income Tax (Low) Income Tax (High)
      Tennessee 0% 0%

      Goods & Services

      Item Chattanooga National avg. Difference
      Haircut $18.80$24.2622.5%
      Beauty Salon $48.40$45.566.2%
      Toothpaste $3.66$3.701.1%
      Shampoo $1.27$1.280.8%
      Movie $12.57$12.133.6%
      Bowling $16.47$18.008.5%

      Groceries

      Item Chattanooga National avg. Difference
      Ground Beef $5.63$5.843.5%
      Fried Chicken $1.43$1.578.9%
      Milk $4.49$4.673.9%
      Potatoes $5.17$4.934.8%
      Pizza $11.66$12.093.6%
      Beer $10.02$10.413.8%

      Health Care

      Item Chattanooga National avg. Difference
      Optometrist $112.00$125.6810.9%
      Doctor $129.61$135.784.5%
      Dentist $96.50$113.2914.8%
      Ibuprofen $10.39$10.652.4%
      Lipitor $465.03$468.600.8%

      Housing

      Item Chattanooga National avg. Difference
      Home Price $174,900.00$184,700.005.3%
      Avg. Mortgage Payment $2,008.10$2,346.6914.4%
      Apartment Rent $891.00$949.006.1%

      Transportation

      Item Chattanooga National avg. Difference
      Gasoline $3.09$3.4610.6%
      Tire Balancing $50.87$59.9215.1%

      Utilities

      Item Chattanooga National avg. Difference
      All Electricity $170.16$193.9912.3%
      Phone $192.18$192.250.0%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Rossville, GA3,9898020.2%
      Whitwell, TN1,9778317.0%
      Lakeview, GA4,7618416.2%
      Fairview, GA5,9198415.6%
      Fort Oglethorpe, GA9,8778514.6%
      Chattanooga, TN181,370927.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Sioux Falls, SD180,927954.5%
      Fort Lauderdale, FL181,81812524.9%
      Brownsville, TX182,2307723.2%
      Vancouver, WA182,79212424.4%
      Newport News, VA179,5821032.8%
      Chattanooga, TN181,370927.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.