Nashville, Tennessee Cost Of Living

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C+

Overall 4%

Goods & Services 1%

Housing 5%

Date & Last Updated: This data reflects 2020 and was released from C2ER in January, 2021; 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 living	96	88	100
Goods & Services	99	94	100
Groceries	88	92	100
Health care	86	90	100
Housing	95	80	100
Transportation	99	86	100
Utilities	105	92	100

Key findings

The cost of living in Nashville is 9% higher than the Tennessee average
The cost of living in Nashville is 4% lower than the national average
Nashville housing is 5% lower than the national average
Tennessee general sales tax is 37% higher than the national average
Tennessee state income tax is 59% lower than the national average

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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	$67,723	$5,644	$1,580	$2,032
Renters	$34,704	$2,892	$810	$1,041

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 $67,723. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,580 per month to avoid calamity and poverty. The renters in the city have an income of about $34,704, which would make their monthly maximum allowable rental costs $810.

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	1%	1%

Goods & Services

Item	Nashville	National avg.	Difference
Haircut	$15.99	$18.62	14.1%
Beauty Salon	$38.05	$39.05	2.6%
Toothpaste	$3.00	$2.34	28.1%
Shampoo	$0.85	$1.06	19.9%
Movie	$11.19	$10.68	4.8%
Bowling	$3.98	$14.67	72.8%

Groceries

Item	Nashville	National avg.	Difference
Ground Beef	$3.96	$4.22	6.3%
Fried Chicken	$1.01	$1.39	27.5%
Milk	$1.20	$2.05	41.4%
Potatoes	$4.03	$3.29	22.5%
Pizza	$8.31	$10.62	21.7%
Beer	$8.11	$9.38	13.6%

Health Care

Item	Nashville	National avg.	Difference
Optometrist	$88.44	$108.57	18.5%
Doctor	$80.22	$116.17	30.9%
Dentist	$85.29	$99.13	14.0%
Ibuprofen	$7.22	$9.68	25.4%
Lipitor	$409.70	$466.92	12.3%

Housing

Item	Nashville	National avg.	Difference
Home Price	$174,600.00	$184,700.00	5.5%
Avg. Mortgage Payment	$1,028.38	$1,197.42	14.1%
Apartment Rent	$902.00	$949.00	5.0%

Transportation

Item	Nashville	National avg.	Difference
Gasoline	$2.30	$2.22	3.4%
Tire Balancing	$43.03	$50.07	14.0%

Utilities

Item	Nashville	National avg.	Difference
All Electricity	$177.56	$167.67	5.9%
Phone	$29.84	$175.64	83.0%

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, State	Population	Cost of Living Index	National Avg.
La Vergne, TN	34,451	93	-7%
Smyrna, TN	45,369	94	-6%
Goodlettsville, TN	16,848	97	-3%
Berry Hill, TN	793	100	0%
Green Hill, TN	7,079	101	1%
Nashville, TN	643,771	96	-4%

Cities with similar population

City, State	Population	Cost of Living Index	National Avg.
Memphis, TN	655,857	81	-19%
Boston, MA	658,279	146	46%
Washington, DC	659,009	151	51%
Denver, CO	663,303	116	16%
Baltimore, MD	621,000	100	0%
Nashville, TN	643,771	96	-4%

Source: The Nashville, TN cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2020.