Cost of Living in Farragut
Farragut runs genuinely below the national average on BestPlaces' cost-of-living index despite high housing prices and high household incomes -- a real, sourced advantage worth understanding alongside its expensive housing market.
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Learn moreA real cost-of-living advantage despite expensive housing
Farragut's BestPlaces cost-of-living index is 91.8 -- 8.2% below the national average and 2.1% below the Tennessee state average (BestPlaces, retrieved 2026-08-22). This may seem counterintuitive given Farragut's genuinely expensive housing market (see housing), but the index blends housing with food, healthcare, transportation, and other costs across the board.
Median household income carries a genuinely wide, disclosed spread
The Town of Farragut's own official page cites a median household income of $109,156, sourced to the 2020 Census. A more recent private aggregator (Neilsberg) cites $142,093 for 2024. This roughly $33,000 spread is disclosed here rather than resolved to one number -- both genuine income growth since 2020 and differing methodology likely contribute; confirm current figures directly for financial planning.
No state income tax, offset by Knox County's real sales tax burden
Tennessee levies no tax on wages or salaries. Knox County's combined sales tax runs 9.25% (7.0% state + 2.25% county) -- real and high by national standards, though lower than the 9.75% cited for Shelby County (Collierville, Germantown) elsewhere in this same-session Tennessee batch.
A rare cost benefit: no municipal property tax
Because the Town of Farragut levies no property tax of its own, Farragut homeowners pay only the Knox County rate ($1.5540 per $100 of assessed value for 2026) -- a real, structural cost advantage relative to Tennessee municipalities that layer a city rate on top of the county rate.
Key takeaways
- Farragut's BestPlaces cost-of-living index is 91.8 -- 8.2% below the national average and 2.1% below the Tennessee state average.
- Median household income figures disagreed sharply this session: $109,156 (Town's own 2020-Census-based figure) vs. $142,093 (2024 private aggregator estimate) -- a real, disclosed ~$33,000 spread.
- Knox County's 9.25% combined sales tax is real and high, though lower than Shelby County's 9.75% cited elsewhere in this batch.
- Farragut homeowners pay only the Knox County property tax rate ($1.5540/$100) since the Town itself levies none -- a real, structural cost advantage.
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