Cost of Living in Memphis, TN
Memphis's cost of living index is 86 — making it 16.3% more affordable than the US national average. To maintain your current standard of living here, you would need to earn $86,000 for every $100,000 of national-average income.
The Memphis Tax & Cost Impact
Since Tennessee has no state income tax, moving to Memphis provides an immediate "automatic raise" of roughly 5-10% for most W-2 employees compared to high-tax states.
Decision Matrix
- ✓Housing: Housing is a value-play compared to national tiers.
- ✓Savings Rate: To save $2,000/mo here, you need a gross household income of ~$72,240.
COL Index
86
100 = national avg
Monthly Budget
$4,300
vs $5,000 national
Population
0.6M
Metro area
State Tax
None
Tennessee
Monthly Cost Breakdown
Estimated monthly costs in Memphis vs national average for a typical household.
| Category | National Avg | Memphis | Difference |
|---|---|---|---|
| Housing | $1,650 | $1,304 | -$346 |
| Groceries | $650 | $577 | -$73 |
| Transportation | $800 | $699 | -$101 |
| Healthcare | $400 | $361 | -$39 |
| Utilities | $300 | $258 | -$42 |
| Other | $1,200 | $1,066 | -$134 |
| Total | $5,000 | $4,300 | -$700 |
Salary Equivalent
To maintain the same standard of living in Memphis, a national-average salary translates to:
$50,000 nationally
$43,000
$75,000 nationally
$64,500
$100,000 nationally
$86,000
$150,000 nationally
$129,000
What Your Salary Gets You in Memphis
Here's how different salary levels translate to monthly purchasing power in Memphis, TN, where the cost of living is 14% below the national average.
Cities With Similar Cost of Living
FAQ: Cost of Living in Memphis
Is Memphis expensive to live in?
Memphis's cost of living index is 86, which is well below the national average of 100. Housing is typically the biggest factor, with estimated monthly rent around $1,419.
What salary do I need to live comfortably in Memphis?
To maintain a middle-class lifestyle in Memphis, you'd need approximately $64,500 per year, which is equivalent to a $75,000 salary at the national average cost of living.
How does Memphis compare to other cities?
Memphis is comparable in cost to Tulsa, El Paso, Detroit.