Cost of Living in Memphis
Memphis runs meaningfully below the national cost-of-living average -- one 2026 aggregator put overall costs 10% below the national average (and about 2% above Tennessee's own statewide average) -- with housing carrying the deepest discount, though sources disagreed on exactly how deep: one source cited housing costs 34% below the national average, another a more modest 16% below.
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Learn moreOverall Monthly Costs
One 2026 cost-of-living aggregator estimated total monthly living costs in Memphis at $2,222 for a single person and $4,894 for a family of four, describing overall Memphis costs as 10% below the national average and about 2% above Tennessee's statewide average -- a 1% increase from the same aggregator's 2025 figure. That Memphis running slightly above the state average while still well below the national average is a real, if secondary, data point: Memphis is not the cheapest place to live within Tennessee itself, even though it's cheaper than most of the country.
Housing: The Biggest Discount, With a Disclosed Size Disagreement
Housing is the largest single driver of Memphis's below-average cost of living, but sources disagreed on the exact magnitude: one aggregator cited housing costs 34% below the national average ($791/month for a single person, $1,451/month for a family of four), while a separate source described Memphis housing as 16% cheaper than the U.S. average. Both agree on direction -- Memphis housing is genuinely, substantially cheaper than the national norm -- but not on the precise size of that gap; treat any single housing-discount percentage as directional rather than settled.
Groceries, Healthcare, and Everyday Costs
Groceries run about 1% below the national average in Memphis per one 2026 aggregator, food costs overall about 26.2% below average ($295/month for a single person, $960/month for a family of four), clothing about 7% cheaper, and healthcare services about 21% cheaper than the U.S. average. A separate, blended category combining energy, transportation, and healthcare was cited as running 17.9% below average ($718/month single, $1,590/month family of four). These are consistently below-average figures across every category reviewed this session, not just housing.
No State Income Tax, But a High Sales Tax -- See the Taxes Page
As detailed on the taxes topic page, Tennessee's lack of a state income tax is a real structural cost-of-living advantage, offset by a combined sales tax rate that runs among the highest in the nation (9.61% statewide average, with Memphis/Shelby County-specific figures ranging 9.25%-9.75% depending on source). This tax structure matters more for higher earners and heavy consumer spenders than it does for the headline cost-of-living index, which is driven primarily by housing.
A Real Contrast With Nashville
As detailed in the base Memphis record, Memphis's median home sale price (around $210,000, per Redfin) runs at less than half of Nashville's figure in this same build -- a genuinely large affordability gap between Tennessee's two largest metro economies. Memphis's overall cost-of-living advantage over Nashville is real and substantial, not a marginal difference.
Key takeaways
- Memphis's overall cost of living runs about 10% below the national average and roughly 2% above Tennessee's own statewide average, per one 2026 aggregator ($2,222/month single, $4,894/month family of four).
- Housing carries the deepest discount, though sources disagreed on the exact size -- 34% below the national average per one aggregator, 16% below per another. Both agree on direction, not magnitude.
- Groceries, food, clothing, and healthcare all run meaningfully below the national average (roughly 1%-26% below, depending on category) -- a consistent below-average pattern across the board, not just housing.
- Tennessee's no-income-tax status is a real cost advantage, offset by a combined sales tax rate near the top of the nation (9.61% statewide average) -- see the taxes topic page.
- Memphis's median home price runs at less than half of Nashville's in this build's data -- a real, substantial affordability gap between Tennessee's two largest metro economies.
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