Knoxville Cost of Living 2026

Knoxville, Tennessee is one of the most affordable mid-size cities in the Southeast, with a cost of living index around 89 — meaning it's 11% cheaper than the national average. Combined with Tennessee's zero state income tax, Knoxville has become increasingly popular with remote workers, retirees, and families looking for an affordable city with genuine quality of life.

Here's a detailed breakdown of what it actually costs to live in Knoxville in 2026.

Housing Costs in Knoxville

Housing is where Knoxville really shines. The median home price in the Knoxville metro area is approximately $310,000 — well below the national median of $420,000. And unlike many fast-growing Southern cities, Knoxville's housing market hasn't experienced the extreme price spikes seen in Nashville or Charlotte.

Renting in Knoxville

• 1-bedroom apartment: $950-$1,200/month
• 2-bedroom apartment: $1,100-$1,450/month
• 3-bedroom house: $1,400-$1,800/month

Buying in Knoxville

• Median home price: ~$310,000
• Property tax rate: ~0.62% (Knox County) — among the lowest in the nation
• Monthly mortgage (20% down, 6.8%): ~$1,620

Neighborhoods like Bearden, Fountain City, and Farragut offer good value for families. Downtown and the Old City cater more to young professionals and have slightly higher rents but walkable lifestyles.

Compare Knoxville's costs to your current city with our cost of living calculator.

No State Income Tax: What It Means for Your Paycheck

Tennessee does not levy a state income tax on wages or salaries. This is a massive benefit compared to neighboring states. If you earn $80,000:

• In Tennessee: $0 state income tax
• In North Carolina: ~$3,600 state income tax (4.5%)
• In Georgia: ~$4,160 state income tax (5.49% top rate)
• In Virginia: ~$3,740 state income tax

That's $3,000-$4,000+ per year staying in your pocket. See your exact take-home pay with our Tennessee tax calculator.

Other Living Expenses

Transportation

Knoxville is a car-dependent city. Public transit exists (KAT bus system) but isn't comprehensive enough for most residents to go car-free. Gas prices typically run $0.10-$0.20/gallon below the national average. Insurance rates in Tennessee are moderate. Budget $400-$550/month for total transportation costs (car payment, insurance, gas, maintenance).

Groceries

Grocery prices in Knoxville are about 5-7% below the national average. Publix, Kroger, and Aldi all have strong presence. A household of two should budget $450-$550/month for groceries.

Healthcare

Healthcare costs in the Knoxville area are approximately 8% below the national average. The University of Tennessee Medical Center is the region's major hospital. Specialist access is good for a mid-size city, though less extensive than in Nashville.

Utilities

Average monthly utilities (electric, water, gas, internet) run about $200-$280 for a 2-bedroom apartment. TVA electricity rates are among the lowest in the Southeast.

Knoxville vs. Nashville vs. Chattanooga

Tennessee's three main cities each have different profiles:

• Knoxville (COL Index: 89): Most affordable, university town vibe, outdoor recreation, smaller job market
• Chattanooga (COL Index: 91): Slightly more expensive, strong tech scene (gigabit internet city), scenic location
• Nashville (COL Index: 103): Above national average, booming job market, entertainment capital, significantly higher housing costs (median home ~$440,000)

Knoxville gives you the Tennessee tax advantage at the lowest cost. Nashville offers more career opportunities but at a 15-20% premium. Use our relocation calculator to compare specific scenarios.

Why Remote Workers Are Moving to Knoxville

Knoxville checks several boxes that remote workers prioritize:

• No state income tax means your full remote salary stays intact regardless of where your employer is based
• Low housing costs let you buy a home with a dedicated office for less than a 1-bedroom apartment in many coastal cities
• Outdoor access: The Great Smoky Mountains are 45 minutes away. Knoxville has extensive greenways and the Tennessee River for recreation.
• Good internet infrastructure: Fiber internet is available in many neighborhoods
• Airport: McGhee Tyson Airport offers direct flights to major hubs

A remote worker earning $100,000 from a San Francisco-based employer keeps roughly $6,000-$8,000 more per year in Tennessee vs. California just from state tax savings — plus another $15,000-$25,000 in housing cost reduction.

See exactly how your salary translates across cities with our cost of living calculator, and check the Tennessee tax breakdown to understand your full financial picture.