The cost of living in Nashville runs close to the national average, with housing doing most of the work to push it to one side of the line or the other, depending on which index you read. No state income tax helps your paycheck stretch, though a 9.75% sales tax takes some of that back at the register. Groceries, utilities, and healthcare all sit near or below the national baseline. Here is the full breakdown, category by category, with sourced 2026 numbers so you can build a realistic budget before you move.
If you are considering a full relocation, our Moving to Nashville guide covers taxes, jobs, neighborhoods, and schools, along with the numbers on this page.
Key Takeaways
- By the BEA’s regional price parity, Nashville runs about 3% below the national average; housing-weighted indexes put it a few points above.
- Housing is the swing factor, with a median home price of around $485,000 and a one-bedroom rent of near $1,660 a month.
- Tennessee has no state income tax, offset by a 9.75% combined sales tax, one of the highest in the country.
- Groceries, utilities, transportation, and healthcare run near or below the national average.
- Davidson County property taxes are about 0.7%, below the national average near 1.1%.
How Nashville’s Cost of Living Compares
The answer depends on how you measure it. The U.S. Bureau of Economic Analysis, which publishes the most authoritative regional price data, puts the Nashville metro around 97 on its regional price parity index, roughly 3% below the national average. Private composite indexes that weight housing more heavily land higher, in the 103 to 107 range, a few points above average. Almost all of that gap is housing. Take housing out, and Nashville is an affordable place to live. Add it back at today’s home prices, and the metro sits right around the middle.
Housing Costs in Nashville
Housing is the biggest line in any Nashville budget, and the one that moves the most. The median home price was around $485,000 at the end of 2025. Renting first is common while you learn the area, and a one-bedroom averages about $1,660 a month, with two-bedrooms closer to $1,990. Where you land changes everything, from the $300,000s in Antioch to seven figures in Belle Meade. Our guide to the best neighborhoods in Nashville breaks down price ranges by area.
Everyday Expenses
Outside of housing, Nashville is where the budget gets friendlier. The figures below reflect 2025 to 2026 cost-of-living data and are typical ranges, not fixed prices, so your own numbers will vary with household size and lifestyle.
| Category | Typical Nashville cost | Vs. national |
|---|---|---|
| Rent, one-bedroom | ~$1,660 / month | Near average |
| Rent, two-bedroom | ~$1,990 / month | Near average |
| Utilities (apartment) | $180–$250 / month | Near average |
| Electricity | ~13¢ / kWh | Near average |
| Groceries | $350–$500 / person / month | At or below |
| Gas | ~$2.50–$3.00 / gallon | At or below |
| Healthcare | Tracks ~4% under national | Below |
| Childcare (daycare) | ~$1,190 / month | Varies |
Nashville is car-dependent, so transportation should be planned for. Public transit through WeGo runs about $2.25 a ride or $70 for a monthly pass, but service is limited outside the core, so most residents drive and budget for fuel, insurance, and maintenance instead.
Electricity runs about 13 cents per kilowatt-hour, in line with national figures from the U.S. Energy Information Administration.
Nashville Taxes: The Real Tradeoff
Taxes are where Nashville’s cost picture gets interesting. Tennessee has no state income tax. The Hall tax on investment income was fully phased out in 2021, so wages, salaries, and investment income are all free of state tax. The offset is sales tax. Nashville’s combined rate is 9.75%, one of the highest in the country, made up of the 7% state rate plus 2.75% in Davidson County, per the Tennessee Department of Revenue. Groceries are exempt from the state portion, which softens the hit on food, and the local share is capped on the first $1,600 of any single item. Property taxes remain low, with Davidson County’s effective rate around 0.7%. For a median-priced Nashville home, that works out to roughly $3,000 to $3,400 a year, well under the national average of about 1.1%. How the tradeoff nets out depends on your income and spending, so it is worth talking to a tax professional. Our Davidson County property tax guide walks through how your bill is calculated.
What Income You Need to Live in Nashville
Median household income in Nashville was about $75,200 in 2025. A common budgeting guideline keeps total housing costs under roughly 30% of gross income, which is the lever that moves a Nashville budget the most, since everyday costs stay close to average. Local cost-of-living estimates put a comfortable pre-tax budget for a couple in the mid-$4,000s per month, and higher for a family with children once childcare is factored in. Those are starting points, not targets, and your housing choice will shift them more than any other category.
How Financing Shapes Your Nashville Budget
Because housing swings the budget more than anything else, the mortgage you choose is the biggest lever you control. Getting pre-approved first tells you your real price range, taxes and insurance included, so you can plan around an actual monthly payment instead of a guess. A higher rate is not automatically worse if it lowers that payment, which is where options like a temporary buydown can help keep housing inside your budget. Tennessee’s lack of a state income tax also helps your debt-to-income math, since more of your gross pay is yours to work with. Start with our Nashville mortgage lender page and run your numbers on the Tennessee mortgage calculator.
Cost of Living in Nashville FAQ
Is Nashville expensive?
It sits close to the national average overall. Housing costs have risen over the past five years, but everyday costs like groceries, utilities, and healthcare remain near or below average, and there is no state income tax.
How much does it cost to live in Nashville per month?
It depends on household size and housing. Local estimates put a comfortable pre-tax budget for a couple in the mid-$4,000s a month, with housing as the biggest variable. Rent for a one-bedroom averages about $1,660.
Is Nashville cheaper than the national average?
By the BEA’s regional price parity, yes, about 3% below. Housing-weighted composite indexes put it slightly above. The difference between those two answers is almost entirely housing.
How much do you need to make to live in Nashville?
Median household income is about $75,200. A common guideline is to keep housing costs at roughly 30% of gross income, so your target depends mostly on your rent or mortgage.
Why is Nashville’s sales tax so high?
Tennessee funds state and local government without an income tax, so it leans on sales tax instead. The state rate is 7%, plus 2.75% in Davidson County, for a combined rate of 9.75% in Nashville.
Are property taxes high in Nashville?
No. Davidson County’s effective property tax rate is around 0.7%, below the national average near 1.1%, which keeps the ongoing cost of owning a home lower than in many metros.
Turn Your Nashville Budget Into a Real Number
The fastest way to pin down the biggest piece of your Nashville budget is a pre-approval, which sets your housing number with taxes and insurance built in. From there, the rest of the budget falls into place.
Reach out to JVM Lending to get pre-approved and see what you can afford to buy in Nashville.
Find the Neighborhood That Fits Your Budget
Get pre-approved and know your real range before you start touring homes.
Sources
Cost-of-living index: U.S. Bureau of Economic Analysis regional price parity (Nashville MSA ~97) and private composite indexes (2026). Taxes: Metro Nashville FY2026 Revenue Overview and Tennessee Department of Revenue (9.75% combined sales tax; no state income tax; Davidson effective property tax ~0.7%). Housing: JVM Nashville market data (median ~$485,000, December 2025) and 2025–2026 rent reports. Everyday costs: EIA (electricity), AAA (fuel), USDA and local cost surveys (groceries, utilities, childcare), 2025–2026. Income: U.S. Census / local estimates (median household income ~$75,200, 2025).
