Tennessee vs Texas — Cost of Living, Taxes & Income Reality
Data: 2026-Q2 · BLS · HUD · KFFQuick comparison
| Metric | Tennessee | Texas |
|---|---|---|
| Cost of Living Index | 90 ✓ | 93 |
| Median Household Income | $71,997 | $79,721 ✓ |
| Median Rent | $1,750/mo ✓ | $1,800/mo |
| State Income Tax | No tax | No tax |
Tax reality
Both Tennessee and Texas have no state income tax — so compare cost of living and housing instead. On a $70,000 salary, take-home is roughly the same in both: about $4,803/month.
Housing reality
Tennessee
1BR $1,578 – $1,578/mo
Texas
1BR $1,177 – $1,648/mo
Major cities compared
Tennessee
Purchasing power
Your $70,000 in Nashville feels like approximately $69,290 in Austin, once housing and taxes are accounted for.
Who benefits from each
- Anyone prioritizing a lower overall cost of living will find Tennessee stretches a paycheck further.
- Workers chasing higher nominal salaries may prefer Texas, where median household income is higher.
Tennessee vs Texas — FAQ
Is it cheaper to live in Tennessee or Texas?
By cost of living index, Tennessee is the cheaper of the two (Tennessee: 90, Texas: 93; national average = 100). Source: C2ER Cost of Living Index.
Which state has lower income taxes, Tennessee or Texas?
Both Tennessee and Texas have no state income tax. Compare housing and overall cost of living instead.
What is the median income difference between Tennessee and Texas?
Texas has the higher median household income (Tennessee: $71,997, Texas: $79,721). Source: Census ACS 2024.
Should I move from Tennessee to Texas?
It depends on your priorities. Tennessee offers a lower cost of living, while Texas has higher median incomes. Weigh taxes, housing, and career options together. This is a picture, not a verdict.