D
28%
Overall NAT. AVG.
17%
Goods & Services NAT. AVG.
58%
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 Tacoma Washington National
Cost of living128118100
Goods & Services117111100
Groceries113110100
Health care125120100
Housing158135100
Transportation124123100
Utilities9592100

An Overview of Cost of Living in Tacoma, WA

Are you thinking about relocating, but curious about the potential cost of living in Tacoma? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Tacoma stands at 128, making it 28% 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.

If you're in pursuit of an economical living environment, Tacoma may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Tacoma falls within this bracket.

Housing costs are a very significant part of the Tacoma cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 57.7% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Tacoma goods and services are 17.1% more expensive than the national average, leaving you with less money at the end of the month.

The surge in grocery costs is indeed alarming, especially when groceries make up a large portion of your monthly expenditures. Over the past two years, there has been an inflation of over 10% in grocery prices. Unfortunately, Tacoma does not fare better, with grocery expenses coming in at 13.1% higher than the national average.

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

Nobody knows their city better than the people who actually live there. So, we asked 19 local residents how they would rate the cost of living in Tacoma and this is how they responded. 63% of people said that the cost of living was affordable, with prices decreasing, while 37% of people said that the cost of living was very expensive and prices continue to rise.

Is Tacoma Affordable?

Is Tacoma an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Tacoma is 68.8% higher than the national average, while the average monthly rent prices are 32% higher than average. The affordability of any location can also be influenced by median income levels. Tacoma has a median household income of $64,457, which is 16.5% higher than the national average.

What Factors can Influence the Cost of Living in Tacoma?

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Tacoma, the housing index is 57.7% 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 Tacoma, the prevailing sales tax rate starts at 6.5%, and income tax rates kick off at 0%.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Tacoma, the groceries index is 13.1% higher than the national average.

Where is the Data From?

The Tacoma cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates 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 Tacoma is 8% higher than the Washington average
  • The cost of living in Tacoma is 28% higher than the national average
  • Tacoma housing is 58% higher than the national average
  • Washington general sales tax is 27% higher than the national average
  • Washington state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Tacoma

See all the best places to live around Tacoma

Compare Tacoma, WA 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$85,999$7,167$2,007$2,580
      Renters$44,746$3,729$1,044$1,343
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Tacoma, WA, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Tacoma, homeowners have a median income of $85,999. Using that number, a maximum of $2,007 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $44,746, which means there is a maximum of $1,044 to be spent on the costs of renting a home or apartment.

      Washington Sales Tax

      State General Sales Tax With Max Surtax
      Washington 6.5% 10.4%

      Washington Income Tax

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

      Goods & Services

      Item Tacoma National avg. Difference
      Haircut $23.76$24.262.1%
      Beauty Salon $54.27$45.5619.1%
      Toothpaste $4.15$3.7012.1%
      Shampoo $1.38$1.287.6%
      Movie $11.92$12.131.8%
      Bowling $21.09$18.0017.2%

      Groceries

      Item Tacoma National avg. Difference
      Ground Beef $5.71$5.842.2%
      Fried Chicken $2.55$1.5762.3%
      Milk $5.14$4.6710.0%
      Potatoes $3.87$4.9321.6%
      Pizza $15.13$12.0925.2%
      Beer $11.74$10.4112.8%

      Health Care

      Item Tacoma National avg. Difference
      Optometrist $191.81$125.6852.6%
      Doctor $192.99$135.7842.1%
      Dentist $127.12$113.2912.2%
      Ibuprofen $11.85$10.6511.2%
      Lipitor $555.70$468.6018.6%

      Housing

      Item Tacoma National avg. Difference
      Home Price $311,700.00$184,700.0068.8%
      Avg. Mortgage Payment $3,051.24$2,346.6930.0%
      Apartment Rent $1,253.00$949.0032.0%

      Transportation

      Item Tacoma National avg. Difference
      Gasoline $4.20$3.4621.3%
      Tire Balancing $78.74$59.9231.4%

      Utilities

      Item Tacoma National avg. Difference
      All Electricity $169.30$193.9912.7%
      Phone $204.78$192.256.5%
      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.
      Ketron Island, WA011514.6%
      Fairwood CDP (Spokane County), WA8,05511413.7%
      North Puyallup, WA1,97011515.1%
      Midland, WA9,51811817.9%
      Longbranch, WA4,56811717.3%
      Tacoma, WA215,76612827.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Des Moines, IA215,408909.9%
      Richmond Hill, ON215,407n/a 
      San Bernardino, CA216,78411918.9%
      Enterprise, NV214,59111717.3%
      Modesto, CA214,48512423.6%
      Tacoma, WA215,76612827.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.