Cost of Living in Tennessee vs. Georgia

Cost of Living in Tennessee vs. Georgia: Tennessee and Georgia are two of the most frequently compared Southern states for anyone weighing a move, and for good reason. Both provide mild winters and growing job markets, just by different routes. Tennessee skips income tax altogether while keeping electricity among the nation’s cheapest.  Georgia counters with a higher median income and a substantially diversified economy led by Atlanta. A family, a retiree, and a first-time homebuyer would likely weigh these factors differently.

This update draws on MIT Living Wage, Census, Zillow, Tax Foundation, and FBI data.

Key Takeaways

1. Tennessee holds a modest cost of living edge (index ~90.3 vs. Georgia’s ~92.5), narrower than many assume but still meaningful.
2. Tennessee has no state income tax; Georgia’s flat rate fell to 4.99% in 2026, with a legislated path to 3.99% by the early 2030s.
3. Georgia’s median household income (~$80,000) outpaces Tennessee’s (~$76,000) by about $4,000–$5,000, partially offsetting Tennessee’s lower cost structure.
4. Homeowners insurance runs somewhat higher in Tennessee (~$2,100–$3,100/year) than Georgia (~$1,900–$2,900), though both stay well below Florida-level premiums.
5. Tennessee’s property tax burden is lighter (~0.48%–0.52%) versus Georgia’s (~0.72%–0.83%), favoring long-term homeowners.
6. Infant center-based childcare averages ~$13,000–$14,000/year in Tennessee versus a wider $10,000–$14,000 range in Georgia.
7. Neither state has expanded Medicaid, leaving Tennessee’s uninsured rate near 9.7%–10% and Georgia’s near 12%, among the nation’s highest.

Related article

Moving to Tennessee: THE Complete Relocation Guide & Checklist

Considering a move to Tennessee? The Volunteer State offers stunning scenery, friendly communities, and an affordable cost of living. From Nashville’s music scene to Chattanooga’s outdoor adventures, find your perfect home. This guide will help you make an informed decision about relocating to Tennessee. Welcome!…

At-a-Glance Comparison

1. Living Wage Comparison

The MIT Living Wage Calculator, updated February 2026, estimates what it costs to meet basic needs in each state. The figures show a clear contrast driven by housing costs.

A single working adult in Tennessee needs almost $15 per hour to cover basic needs, while a single working adult in Georgia should be earning closer to $22 to $24 per hour, largely due to higher costs in the Atlanta metro. This dispersion widens further for single-parent households, where Georgia’s requirement can exceed $35 per hour, while Tennessee’s comparable figures, though varying meaningfully by county, generally remain lower.

Neither state’s minimum wage comes close to the living wage threshold. Tennessee defaults to the federal minimum of $7.25 per hour. Georgia’s state minimum is technically $5.15, but the federal $7.25 rate applies to most workers covered by the Fair Labor Standards Act. Full-time minimum-wage work yields about $15,000 annually, well short of the living wage estimates above.

The practical takeaway is low-wage workers in both states struggle to meet basic needs without public assistance or multiple jobs. Georgia’s higher living wage threshold means the shortfall is more acute there in dollar terms, though Tennessee’s generally lower wage scales create their own affordability pressure.

Related article

The 22 Affordable Things to do in Dahlonega, Georgia

The advantage of being such a small city is that it can sustain a very affordable cost of living, and vacationing, too. Low-cost attractions abound in Lumpkin County; locals and vacationers will find no shortage of things to do…

2. Housing Costs

Housing is the largest single expense for most households, and the differences between TN and GA reflect distinct market dynamics shaped by geography, job centers, and population growth.

A. Home Prices

Tennessee’s statewide median home value is approximately $334,000 to $339,000 as of mid-2026, with Nashville’s metro running considerably higher, near $470,000. Georgia’s median home value sits around $334,000 as of spring 2026, with list prices reported somewhat higher.

Key metro medians illustrate the variation:

• Atlanta, GA: ~$370,000–$400,000
• Nashville, TN: ~$470,000
• Knoxville, TN: ~$315,000–$350,000
• Memphis, TN: ~$210,000–$250,000
• Savannah, GA: ~$330,000–$360,000

Tennessee’s affordability advantage is most pronounced outside Nashville. Memphis and the Tri-Cities area offer greater affordable housing options in the Southeast, while Georgia’s pricier markets Atlanta, Savannah, and the coast raise the statewide figure.

B. Renting

Rental markets have softened modestly as new apartment supply comes online. Tennessee one-bedroom units average roughly $1,150 to $1,680 per month depending on the city, while Georgia one-bedroom units average approximately $1,180 to $1,775. Chattanooga and Atlanta post some of the higher rents in their respective states, both near $1,760 to $1,775. For renters, 2026 offers somewhat more negotiating power than recent years, with increased inventory in most metropolises.

C. Homeowners Insurance

Homeowners insurance is a meaningful but not overwhelming cost in this region, unlike Florida’s crisis-level premiums. Estimates vary notably by source. Some place Tennessee’s statewide average near $2,100, while others put it above $3,000; Georgia’s estimates range from roughly $1,900 to about $2,900. Averaged across sources, the Volunteer State tends to run somewhat higher than the Peach State, contrary to some rankings that show the reverse. Ideally, buyers should obtain quotes for their specific ZIP code rather than rely on statewide averages.

Residents face severe-weather risk from tornadoes, hail, and thunderstorms that push premiums above the national average in certain counties. Neither experiences the hurricane-driven insurance crisis affecting Florida’s coastal markets. For a comparable $300,000 home, the annual insurance difference between the two states is typically a few hundred dollars, depending on location and carrier.

D. Property Taxes

Property taxes tell a more consistent story than insurance. Tennessee’s effective property tax rate on owner-occupied housing is approximately 0.48% to 0.52%, among the lowest in the nation. Georgia’s effective rate runs roughly 0.72% to 0.83%, depending on the source and county mix.

On a $350,000 home, this difference translates to approximately:

• Tennessee: ~$1,680–$1,820 annually
• Georgia: ~$2,520–$2,905 annually

Over a 10-year period, the property tax gap compounds to roughly $8,000 to $12,000 in additional Georgia costs on similarly priced homes. Their 2026 reforms (SB 33) now mandate a statewide 3%-or-inflation cap on annual assessed-value increases for homesteaded properties, closing a loophole that lets roughly two-thirds of school districts opt out of meaningful protection for long-term homeowners. However, it does not cap millage rates or total tax bills.

Related article

7 Safest Places to Live in Tennessee

In this article we are going to go over some of the safest places to live in Tennessee. Naturally, safety will always be one of the first concerns in mind for someone moving to, or even just visiting, a new place…

3. Economy and Taxes

A. Economic Landscape

Tennessee’s GDP reached approximately $590 billion in 2025, with unemployment holding near 3.5% in 2026, below the national average. Major industries include automotive manufacturing (Nissan, GM, Volkswagen), healthcare (HCA Healthcare, Community Health Systems), music and entertainment, and logistics.

Georgia’s economy is substantially larger, with GDP near $925 billion in 2025 and unemployment similarly low. The state’s leading industries include film and television production (one of the nation’s largest hubs), logistics via Hartsfield-Jackson Atlanta International Airport (ATL), financial services, and tech.

B. Income and Purchasing Power

Georgia’s 2024 median household income (~$80,000) outpaces Tennessee’s (~$75,900) by roughly $4,000 to $5,000. Georgia’s larger economy and corporate-headquarters concentration help explain that gap. Contrarily, Tennessee’s lower overall cost structure, no income tax, lower property taxes, and affordable electricity narrows the effective difference considerably. For a household earning close to the state median, Tennessee’s tax and housing savings can offset most or all of Georgia’s income advantage, particularly for homeowners. The comparison tightens further once its 4.99% income tax is applied to in-state paychecks.

C. Tax Comparison

For a household earning $100,000, Georgia’s 4.99% flat rate creates roughly $4,990 in state tax liability before the state’s increased standard deduction and dependent exemptions are applied; at $150,000, that is roughly $7,485, and at $200,000, roughly $9,980. Tennessee’s lack of an income tax saves households the full amount, though these Georgia figures overstate real liability because HB 463 also raised the standard deduction to $15,000 (single) and $30,000 (joint) and the dependent exemption to $5,000.

Tennessee’s sales tax, among the nation’s highest at 9.25% to 9.75% combined in many areas versus Georgia’s 7% to 9%, partially offsets its income tax advantage for households with heavy taxable spending. Georgia taxes most groceries and general goods at the full combined rate, while Tennessee taxes food at a reduced 4% state rate plus local add-ons.

4. Safety

Using 2024 FBI Uniform Crime Reporting data, Tennessee’s violent crime rate was approximately 592 incidents per 100,000 residents, well above the national rate of about 364 and among the highest in the country. Georgia’s violent crime rate, by contrast, was approximately 326 per 100,000, below the national average, after a 10.5% year-over-year decline; the state recorded 706 homicides in 2024. This has more meaning than a simple “both states have crime” framing suggests as statewide, Georgia registers as noticeably safer than Tennessee on this measure.

Local variation possesses greater weight than statewide figures, however. Memphis posts one of the highest big-city violent crime rates in the nation, and Nashville also ranks among the higher-crime large cities nationally. Conversely, suburban communities in both locations with Franklin and Brentwood in Tennessee, Alpharetta and Johns Creek in Georgia consistently rank among the safest in the country. Prospective movers should research specific cities and ZIP codes rather than relying on statewide statistics alone.

5. Climate and Geography

These sections host humid subtropical climates with hot summers and mild winters, but their geographic diversity produces different lived experiences.

Tennessee spans the Great Smoky Mountains in the east to the Mississippi River delta in the west. Tornado risk exists statewide, particularly in the western and middle regions, with the December 2021 tornado outbreak a stark reminder. Winter storms occasionally disrupt travel, though less severely than in northern states.

Georgia offers a similar geographic range, from the Blue Ridge Mountains in the north to the Atlantic coastline and Okefenokee Swamp in the south. The state faces hurricane risk along its roughly 100-mile coastline, though storm-surge impacts are generally milder than in Florida or the Gulf Coast. Tornadoes occur statewide, particularly in the north and central regions.

For cost purposes, climate matters most through insurance. Tennessee’s inland location avoids hurricane exposure but faces significant tornado and severe-thunderstorm risk, while Georgia’s coastal counties carry hurricane exposure that inland does not share. This means statewide insurance averages mask large within-state variation for both states.

Related article

10 Best Places to Live in Georgia in 2026

If you’re looking for some good old-fashioned Southern hospitality, look no further than Georgia. The Peach State has plenty of small-town charm to welcome you in, as well as big-city development, artistic expression and innovation…

6. Education

K-12 outcomes vary by ranking methodology, but Tennessee consistently places in the upper-middle tier nationally, while Georgia typically ranks in the middle-to-lower tier. Both possess significant district-to-district variation, with neither being a clear national leader.

Higher education tells a more distinct story. The University of Tennessee-Knoxville is a respected public flagship with in-state tuition around $13,800 annually. Georgia’s flagships, Georgia Tech and the University of Georgia, both carry respectable national rankings and in-state tuition roughly in the $9,900 to $16,500 range depending on campus and fees. Georgia’s HOPE Scholarship remains one of the nation’s more generous merit-based aid programs, a meaningful offset for families with college-bound students.

7. Childcare

Childcare costs are substantial in either, representing one of the largest budget items for families with young children.

In Tennessee, infant care can approach or exceed in-state flagship tuition, consuming a substantial share of a typical family’s income. Georgia’s childcare cost burden, as a share of median income, tends to run somewhat lower on average, though costs in Atlanta rival Tennessee’s higher-cost markets. For a family with two young children, annual costs can reach $25,000 to $28,000 in either state. Both areas offer subsidized programs for income-eligible families, though waiting lists are common in major metros.

Related article

11 Best Places to Live in Tennessee for Families

Tennessee is a great place to live, whether you’re looking for the busy city life of Nashville or the peace and quiet of a smaller suburb like Mount Juliet. Each of these best cities to live in Tennessee has something that will appeal to everyone…

8. Healthcare

Neither Tennessee nor Georgia has expanded Medicaid under the Affordable Care Act, leaving significant coverage gaps. Tennessee’s uninsured rate is approximately 9.7% to 10%. Georgia’s remains higher, near 12%, among the highest uninsured rates of any state.

For individuals purchasing ACA Marketplace plans, premiums vary by age, location, and plan tier, as both rely on the federally facilitated marketplace. For Medicare-covered retirees, they offer reliable access to care in urban and suburban areas, though Georgia’s concentration of specialized centers, including Emory Healthcare and the CDC, gives it an edge for complex or specialized needs.

The lack of Medicaid expansion disproportionately affects low-income adults who earn too much for Medicaid but too little for Marketplace subsidies. A large share of the national coverage gap sits in non-expansion Southern states, Georgia among them.

9. Additional Cost Considerations

1. Utilities: Tennessee has some of the nation’s lowest electricity rates, roughly 12 cents per kilowatt-hour versus a national average well above that. Georgia’s rates run slightly higher, near 13 to 14 cents per kilowatt-hour. Typical monthly electric bills average roughly $130 to $145 in Tennessee and $145 to $155 in Georgia. Both states carry heavy summer cooling loads.
2. Gas Prices: As of mid-2026, Tennessee averaged roughly $3.35 to $3.60 per gallon, while Georgia averaged roughly $3.50 to $3.80 (with a temporary state gas-tax suspension in Georgia earlier in 2026 briefly narrowing the gap). Over 15,000 annual miles at 25 mpg, the difference amounts to roughly $50 to $150 per year.
3. Groceries: Food costs in TN run modestly below the national average. GA’s grocery index sits close to the national baseline. For a family of four spending about $800 per month on food, the difference between the two states is typically $10 to $30 per month.
4. Transportation: Each state is largely car-dependent outside Atlanta’s MARTA system and a handful of urban cores. Tennessee’s gas tax is 27.4 cents per gallon; Georgia’s is 34.05 cents (excluding the temporary 2026 suspension). Vehicle registration fees and insurance rates vary by county and driving record, with urban areas generally commanding higher premiums.

Conclusion

Tennessee holds a modest affordability advantage over Georgia for most households. Lower property taxes, no state income tax, economical electricity, and generally lower housing costs outside Nashville give Tennesseans somewhat more disposable income at equivalent salaries. The cost of living gap, roughly 90.3 versus 92.5, is real but smaller than headline claims sometimes suggest, translating to hundreds rather than dramatic thousands of dollars annually for a median household.

Georgia makes a respectable case for specific groups. Higher earners benefit from a larger economy and more corporate job opportunities; families seeking elite public universities and generous merit aid gain access to Georgia Tech, UGA, and the HOPE Scholarship. Georgia’s violent crime rate, contrary to some assumptions, runs below the national average and below Tennessee’s. Meanwhile, Tennessee carries a notably higher violent crime rate statewide, even as many of its suburbs rank among the nation’s safest.

Neither is a universal winner. The right choice depends on income, career field, family situation, and lifestyle priorities; renters, owners, retirees, and remote workers will each weigh these tradeoffs differently. Run the numbers against your specific circumstances before relying on statewide averages.

FAQs About the Cost of Living in Tennessee vs. Georgia

1. Is Tennessee really cheaper than Georgia in 2026?

Tennessee holds a modest affordability edge, with a cost of living index near 90.3 versus Georgia’s 92.5, a gap of about 2%. The difference primarily appears in property taxes and electricity, while Georgia’s somewhat higher median income partially offsets its higher costs.

2. How much salary do you need in Tennessee to match a Georgia lifestyle?

A household earning $80,000 in Georgia would generally need a slightly lower salary in Tennessee, often in the high-$70,000s, to maintain a similar standard of living, based on the roughly 2% cost differential. The exact figure shifts with housing choices, family size, and childcare needs.

3. Which state is better for retirees in 2026?

Tennessee generally favors retirees on fixed incomes. No state income and lower property taxes preserve more of each Social Security check or retirement distribution. Georgia’s flat 4.99% income tax and higher property taxes reduce purchasing power, though its expanded retirement-income exclusion (rising to $70,000 in 2027) narrows that divide, while Atlanta’s medical infrastructure appeals to retirees prioritizing specialized healthcare access.

4. Are people still moving to Tennessee and Georgia in 2026?

Yes, though growth has slowed from pandemic-era peaks. Tennessee added roughly 42,000 net domestic migrants in 2025, one of the highest totals nationally, while Georgia added about 27,000. Both remain top Southern relocation destinations despite overall migration to the region cooling.

5. Which state is better for remote workers in 2026?

Tennessee offers an ideal financial case for most remote workers thanks to no state income tax and lower housing costs outside Nashville. Georgia competes on Atlanta’s urban amenities, airport access, and job diversity, but Tennessee generally lets remote workers keep more income each month.