A+
8%
Overall NAT. AVG.
6%
Goods & Services NAT. AVG.
37%
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 Nashville Tennessee National
Cost of living10889100
Goods & Services9494100
Groceries10098100
Health care9188100
Housing13780100
Transportation9289100
Utilities10293100

An Overview of Cost of Living in Nashville, TN

Are you thinking about relocating, but curious about the potential cost of living in Nashville? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Nashville stands at 108, making it 8% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

The cost of living in Nashville closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Nashville can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

When it comes to the cost of living in Nashville, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 37.3% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

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

Nobody knows their city better than the people who actually live there. So, we asked 40 local residents how they would rate the cost of living in Nashville and this is how they responded. 33% of people said that the cost of living was affordable, with prices decreasing, while 68% of people said that the cost of living was very expensive and prices continue to rise.

Is Nashville Affordable?

Is Nashville affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Nashville, the median home price is 43.3% higher than the national average and monthly rent prices are 23.3% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Nashville boasting a median household income of $62,087, 12.2% higher than the national average.

What Factors can Influence the Cost of Living in Nashville?

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Nashville, the transportation index is 8.2% lower than the national average.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Nashville, the utilities index registers at 2.1% higher than the national average.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Nashville, the prevailing sales tax rate starts at 7%, and income tax rates kick off at 0%.

Where is the Data From?

The Nashville cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Nashville is 21% higher than the Tennessee average
  • The cost of living in Nashville is 8% higher than the national average
  • Nashville housing is 37% higher 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 Nashville

See all the best places to live around Nashville

Compare Nashville, 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$82,336$6,861$1,921$2,470
      Renters$45,469$3,789$1,061$1,364
      To approximate the cost of living and the housing affordability in Nashville, TN, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Nashville have a median income of $82,336. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,921 per month to avoid calamity and poverty. The renters in the city have an income of about $45,469, which would make their monthly maximum allowable rental costs $1,061.

      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 Nashville National avg. Difference
      Haircut $24.76$24.262.1%
      Beauty Salon $46.01$45.561.0%
      Toothpaste $3.71$3.700.2%
      Shampoo $1.23$1.283.9%
      Movie $13.30$12.139.6%
      Bowling $19.79$18.009.9%

      Groceries

      Item Nashville National avg. Difference
      Ground Beef $5.70$5.842.4%
      Fried Chicken $1.43$1.578.9%
      Milk $4.68$4.670.2%
      Potatoes $5.16$4.934.6%
      Pizza $10.85$12.0910.3%
      Beer $10.05$10.413.5%

      Health Care

      Item Nashville National avg. Difference
      Optometrist $96.03$125.6823.6%
      Doctor $116.91$135.7813.9%
      Dentist $104.65$113.297.6%
      Ibuprofen $10.51$10.651.3%
      Lipitor $460.51$468.601.7%

      Housing

      Item Nashville National avg. Difference
      Home Price $264,600.00$184,700.0043.3%
      Avg. Mortgage Payment $2,548.79$2,346.698.6%
      Apartment Rent $1,170.00$949.0023.3%

      Transportation

      Item Nashville National avg. Difference
      Gasoline $3.12$3.469.8%
      Tire Balancing $57.43$59.924.2%

      Utilities

      Item Nashville National avg. Difference
      All Electricity $183.77$193.995.3%
      Phone $218.37$192.2513.6%
      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.
      La Vergne, TN35,5561000.5%
      Smyrna, TN50,8201021.7%
      Pleasant View, TN4,6601065.5%
      Goodlettsville, TN16,8291065.8%
      Green Hill, TN7,3081098.6%
      Nashville, TN667,0701088.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Detroit, MI672,3518415.5%
      El Paso, TX679,8798910.6%
      Memphis, TN650,9108613.9%
      Portland, OR650,38013838.5%
      Oklahoma City, OK649,821918.8%
      Nashville, TN667,0701088.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.