In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
A general summary of the cost of living index in Chattanooga, TN is shown above. Compared to the state average of Tennessee the cost of living index in Chattanooga, TN is 91, which is 1% higher than the average in Tennessee and compared to the national average it is 9% lower than. The cost of living index is made up of several categories. These are transportation at 9%, utilities at 10%, goods and services at 33%, housing at 30%, groceries at 13%, and health care at 5%. The bulk of the cost of living index comes from the categories of goods and services and housing. If you look at everyday goods and services they can be a good indicator in a certain city of the general costs of goods there. In Chattanooga, TN goods and services come in at 1% lower than the average in Tennessee and are 4% lower than compared to the nationwide average.
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Did you know?
The cost of living in Chattanooga is 1% higher than the Tennessee average.
The cost of living in Chattanooga is 9% lower than the national average.
The cost of housing in Chattanooga is 18% lower than the national average.
Tennessee general sales tax is 37% higher than the national average.
Tennessee state income tax is 125% higher than the national average.
Compare Chattanooga, TN Cost of living To Other Cities
This is how much you would need to earn in Price difference in compared to
Cost of living index
Goods & Services index
Health care index
Use the salary calculator to compare your current income in Chattanooga, TN to any other city in the country. The calculator will tell you how much income you would need to make in a particular city to live at the same level based on the cost of living in each city. For example, if the cost of living in the city you are looking to move to is higher than that of Chattanooga, TN, then you would need to earn a higher salary in order to enjoy the same standard of living. To use the Chattanooga, TN salary calculator, enter the name of the new city, then move the slider to your current salary level. The salary calculator will do the rest and let you know if your salary would need to increase or decrease for the new city. You will also see a complete overview of the cost of living.
Median Income & Debt-To-Income Ratio
Max Budget (28% DTI)
Max Budget (36% DTI)
A good way to judge both the affordability of the housing and the cost of living is by simply calculating the maximum that a person should spend on housing in Chattanooga, TN, otherwise known as the debt-to-income ratio (DTI). The safest way to live in the city is to avoid spending more than 28 percent of the gross income that one earns on costs that pertain to housing and no more than 36 percent on all expenses and debts. Chattanooga, TN has a median income of about $57,845 for people who own homes. Based on that number, a person should spend a maximum of $1,350 on expenses related to housing. Renters have a slightly different median income, which is $27,186. Based on this average, renters should spend no more than $634 on all of their rental costs if they want to maintain a non-impoverished standard of living.
Tennessee Sales Tax
General Sales Tax
With Max Surtax
Tennessee Income Tax
Income Tax (Low)
Income Tax (High)
For those who live in Chattanooga, TN and want to know what the true cost of living is, they ought to look at both the Tennessee income tax rate and the Tennessee sales tax rate. By sales tax, we mean the taxes that are included whenever a person is purchasing any goods or services. The amount that is taxed depends upon the particular state, where some states have a sales tax of zero percent while others can have a tax higher than seven percent. In Tennessee, the sales tax is 7%, while the most you'll pay in surtax is 9.75%. There is also income tax to consider, which is based upon the amount of money made in a year. Just like sales tax, income tax depends upon the particular state but also depends upon what tax bracket the person is in. Income tax for the state can be higher than nine percent in some states to zero percent in others. For those that live in Tennessee, the income tax rate ranges between 5% to 5%.
Goods & Services
Avg. Mortgage Payment
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.