COSTS Of LIVING IN TENNESSEE CONTINUED

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Real Estate Agent with KW Cleveland RB365212

Utility Costs in Tennessee

Average Utility Costs in Tennessee: $391 per month

While not the most exciting expenses, utilities are a necessary one you’ll have to finance every month. Here’s what utilities tend to cost monthly in Tennessee.

 

Average Tennessee Utility Bill

Electricity

$126

Gas

$100

Cable & Internet

$122

Water

$43

Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price, 2021; Inspirecleanenergy.com; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report 2021; and Rentcafe.com, What Is the Average Water Bill?

 

Groceries & Food

Average Grocery & Food Costs in Tennessee: $242 per person, per month

A major contributor to your cost of living will be your grocery spending. So how much might you spend on food  you move to Tennessee?

If Tennessee’s average annual (non-restaurant) food cost per person is $2,906, that’s about $242 per month.

The Council for Community & Economic Research, which ranks the food costs in major American cities, ranked Tennessee’s grocery costs for the second quarter of 2021 from lowest to highest.

 

Grocery Items Index

Knoxville

87.6

Jackson

90.3

Memphis

90.8

Morristown

95.0

Columbia

95.8

Nashville

97.6

Chattanooga

98.8

Kingsport

102.1

 

Transportation

Average Transportation Costs in Tennessee: $5,113 to $13,896 per year

Going to and fro can add up, especially if you have a big family. This is a basic breakdown of how annual transportation costs can vary based on family size in Tennessee.

 

Family Makeup

Average Annual Transportation Cost

One adult, no children

$5,113

Two working adults, no children

$9,378

Two working adults, two children

$13,896

 

Health Care

Average Health Care Costs in Tennessee: $6,295 per person, per year

While the average annual per-person cost of health care in Tennessee is $6,295, according to the 2020 Bureau of Economic Analysis report, what you will actually spend on health care may look very different.

Health care spending is determined by location, medical needs, and coverage.

 

Child Care

Average Child Care Costs in Tennessee: $781 to $1,099 or more per child, per month

No matter what state you live in, child care is often a considerable expense. 

Tennesseans may get help with the costs through the  Smart Steps Program.

Want to estimate your child care budget? Here are average monthly child care costs in Tennessee, according to 2021 data from costofchildcare.org.

 

Type of Child Care

Average Cost Per Month, Per Child

Infant Classroom

$1,398

Toddler Classroom

$1,099

Home-based Family Child Care

$939

 

Taxes

Highest Marginal Tax Rate in Tennessee: 

Most states and the District of Columbia charge an income tax, but Tennessee does not.

Residents also don’t have to pay a state income tax in Alaska, Florida, Nevada, Washington, South Dakota, Texas, or Wyoming. 

 

Miscellaneous Costs

Once you’ve tackled all of the necessary expenses, it’s time to enjoy yourself. If estimated personal expenditures are $20,469 per year, here’s what some of that fun spending might be going toward (costs are accurate as of Nov. 24, 2021):

  • A family-friendly day for Dolly Parton and theme park lovers can be spent at Dollywood in Pigeon Forge: Tickets start at $84
  • Music lovers can soak up some history at the Country Music Hall of Fame in Nashville: Tickets start at $17.95
  • For even more music history, stop by Graceland in Memphis, the former home of Elvis Presley: Entrance and tours start at $26 and go as high as $250

 

How Much Money Do You Need to Live Comfortably in Tennessee?

We all have our own idea of what it means to live “comfortably.” Your family size, income, lifestyle, and location can all influence how accessible a comfortable style of living is. 

But to give you an idea of how easy it is to live in Tennessee, US News & World Reports Affordability Rankings

which measure the average cost of living in a given state against the average household income, put Tennessee in 17th place. 

 

Remember that MERIC views the cost of living in Tennessee even more favorably, finding the state to have the sixth-lowest cost of living in the country.

 

What City Has the Lowest Cost of Living in Tennessee?

If you’re eager to make a move to Tennessee but are on a budget, you’ll want to find the right spot to call home. According to the Council for Community and Economic Research's Cost of Living, these are the three major cities with the lowest cost of living, according to the Council for Community and Economic Research’s Cost of Living Index for the second quarter of 2021.

Knoxville

With a cost-of-living index of 83.6, Knoxville is the most affordable major Tennessee city to live in, the council found. Knoxville offers a lot of bang for the buck, from museums to nightlife to fine dining.

Jackson

Next up is Jackson, with a cost-of-living index of just 84.5. You’ll hear Jackson referred to as Hub City. This city is located between Memphis and Nashville, which means you’ll have access to big-city amenities. Jackson is known for being the home of rockabilly, so get ready to meet lots of music lovers.

Memphis

The third-most affordable city in Tennessee is Memphis, with a cost-of-living index of 85.4. This city is famous for its barbecue. You may want to make room in your budget for checking out beloved restaurants like A&R Bar-B-Que and the Bar-B-Q Shop.

With Dolly, Elvis, rockabilly, and barbecue, the Volunteer State offers a taste of the South at an affordable price. If the low cost of living in Tennessee is appealing, you may think about houses.

Although there are many home loans on the market to choose from, SoFi  https://www.sofi.com/offers a range of mortgage loans at competitive interest rates and with as little as 5% down.  A portion of the aforementioned information was courtesy of them. Check them out!  Whether using them (no endorsement) or another lender, if you need a loan in order to purchase, you absolutely must be pre-qualified before you hit the pavement to seriously begin looking.

 

CATCH OUR CONTINUED SEGMENT OF THE COST OF LIVING IN TENNESSEE IN  MOVING TO TENNESSEE FOR DUMMIES.

 

 

 

 

 

Comments (1)

Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Great information for both buyers & sellers in your area Leonora. Thanks for sharing!

Apr 09, 2022 01:14 PM
LEONORA PRINCE CCIM

THANK YOU FOR READING!

Apr 20, 2022 09:15 AM