Cost of Living in Middle Tennessee: What Does It Really Cost?

People move here for the tax picture and then get surprised by the sales tax and the insurance bill. Here is what the published numbers actually say, with the source beside each one.

Is Middle Tennessee cheap or expensive?

It depends entirely which town. BestPlaces puts the overall cost-of-living index at 104.7 for Nashville and 100.6 for Murfreesboro against a US average of 100 — and 139.4 for Franklin. So the same region contains towns at the national average and towns 40% above it.

Does Tennessee have a state income tax?

No. Tennessee does not tax wages, and the old Hall income tax on interest and dividends was fully repealed for tax years beginning January 1, 2021 (Tennessee Department of Revenue).

What about sales tax?

This is where the money comes back. The state rate is 7% general and 4% on unprepared groceries, and local rates stack on top. Davidson County''s local rate rose to 2.75% on February 1, 2025 with the transit surcharge, giving Nashville a combined 9.75%; Rutherford County is also 9.75% (Tennessee Department of Revenue local sales tax rate map).

How much is property tax?

Tennessee assesses residential property at 25% of appraised value (Tennessee Comptroller), then applies the county rate per $100 of that assessed value. County rates for 2025:

Sources: Nashville Trustee, Montgomery County, Williamson County 2025 tax rate sheet, Rutherford County FY2025-26 budget, Maury County FY2025-26 budget, Sumner County Assessor, Tennessee Comptroller data. City rates stack on the county rate — Hendersonville adds about $0.5883 and Gallatin about $0.5295, for example.

On a $400,000 house in Rutherford County that works out as $400,000 x 25% = $100,000 assessed, then $100,000 / 100 x $1.8762 = about $1,876 a year before any city rate.

What do utilities cost?

• Nashville Electric Service publishes an average residential bill of $142.93 a month at 1,000 kWh (NES rates page, base rate effective October 2024 plus fuel cost adjustment).
• Middle Tennessee Electric averages about 11.76 cents per kWh and an average residential bill near $148.33 a month (US Energy Information Administration Form 861, 2024 data).
• Nashville Metro Water Services raised water and sewer rates 3% effective January 1, 2026; a 5/8-inch meter carries a $6.12 water and $9.78 sewer base charge plus volumetric tiers (Nashville.gov, 2026 rates).

What about home insurance?

Rising, and worth quoting before you buy. Tennessee averages roughly $2,672 to $3,045 a year for $300,000 of dwelling coverage, against a US average near $2,470 (Bankrate and Insure.com figures, 2025–2026). Severe storms are the reason — Middle Tennessee averages 18 tornadoes a year (NWS Nashville, 1995–2025).

What do people here earn?

Median household income by county: Williamson about $135,600, Sumner about $95,878, Rutherford about $90,118, Davidson about $80,803 (US Census SAIPE 2024 estimates and ACS 2020–2024 five-year estimates).

What does renting cost while you look?

RentCafe put the average Nashville apartment rent for two bedrooms at about $2,046 a month (August 2026); Zumper put the two-bedroom median nearer $1,800 (June 2026). Rentometer''s metro range was $1,700 to $2,000 (February 2026).

What is the hidden cost most people miss?

House upkeep in this climate. 50.51 inches of rain a year and a March-to-May severe season (NWS Nashville, 1991–2020 normals) means gutters, roofs, drainage and trees are not optional maintenance here. Budget for them from year one — see the new homeowner checklist and what home services you will need.

Where do you go next?

Compare towns in 39 cities and towns in Middle Tennessee, check prices in how much house can you get, or start at Moving to Middle Tennessee.

Every figure above is as published by the named source in 2025 or 2026. Rates change; check the source before you budget on it.