For role-by-role compensation benchmarking and career income strategy, see the Profession Salary Guides hub.
For conversion formulas, overtime scenarios, and annual-pay planning, see the Hourly to Annual hub.
A good salary in Tennessee is $55,000-$70,000 for a single person. Tennessee’s biggest financial advantage? No state income tax on wages — meaning your paycheck goes further than the same salary in Texas’s neighbor Louisiana or nearby Georgia.
Nashville’s explosive growth has pushed its cost of living toward the national average, but Memphis, Knoxville, and Chattanooga remain highly affordable. This guide breaks down what you need to earn for a comfortable life anywhere in the Volunteer State.
Quick Answer by City
Salary requirements vary dramatically across Tennessee. Nashville — with its booming tech scene, healthcare industry, and entertainment sector — now costs nearly twice as much as Memphis:
| City | Good Salary | Comfortable | Thriving | Major Industries |
|---|---|---|---|---|
| Nashville | $70,000 | $90,000 | $125,000 | Healthcare, music, tech |
| Memphis | $50,000 | $65,000 | $90,000 | Logistics, healthcare |
| Knoxville | $50,000 | $65,000 | $90,000 | University, manufacturing |
| Chattanooga | $55,000 | $70,000 | $95,000 | Tech, manufacturing |
| Franklin | $80,000 | $100,000 | $140,000 | Finance, corporate HQ |
The Nashville premium: If you’re considering a Nashville move, expect to need 40-50% more income than smaller Tennessee cities. Franklin, a wealthy suburb south of Nashville, requires even higher earnings for comparable quality of life.
Sources
- Social Security Administration. “Benefits and Eligibility Information.” ssa.gov/benefits
- Centers for Medicare & Medicaid Services. “Medicare Program Information.” medicare.gov
Tennessee Cost of Living
Tennessee’s cost of living is about 10% below the national average — but that statewide figure masks significant variation. Nashville is now at or above national average, while Memphis and Knoxville remain substantially cheaper:
| Category | Tennessee | National Avg | Difference | Notes |
|---|---|---|---|---|
| Overall | 90 | 100 | -10% | Varies by city |
| Housing | 85 | 100 | -15% | Nashville is 100+ |
| Transportation | 92 | 100 | -8% | Car-dependent state |
| Healthcare | 95 | 100 | -5% | Strong hospital systems |
| Utilities | 96 | 100 | -4% | TVA keeps power cheap |
The TVA advantage: The Tennessee Valley Authority provides relatively cheap electricity throughout the state, keeping utility bills lower than many regions.
No State Income Tax Advantage
Tennessee has no state income tax on wages — one of only 9 states with this benefit. This makes a massive difference in your take-home pay, especially at higher salaries.
Take-Home Comparison: Tennessee vs. California
Here’s what you actually keep after taxes in Tennessee vs. a high-tax state like California:
| Gross Salary | TN Take-Home | CA Take-Home | TN Advantage | Extra Per Month |
|---|---|---|---|---|
| $60,000 | $49,910 | $44,200 | +$5,710 | +$476 |
| $80,000 | $64,760 | $56,500 | +$8,260 | +$688 |
| $100,000 | $79,850 | $68,500 | +$11,350 | +$946 |
| $150,000 | $115,900 | $97,500 | +$18,400 | +$1,533 |
At $100K, Tennessee puts an extra $11,350/year in your pocket compared to California — nearly $950/month extra for savings, investing, or lifestyle.
Take-Home Pay in Tennessee
Here’s exactly what you’ll keep at various salary levels, accounting for federal income tax and FICA (Social Security + Medicare):
| Gross Salary | Federal Tax | FICA | Take-Home | Monthly |
|---|---|---|---|---|
| $50,000 | $4,000 | $3,825 | $42,175 | $3,515 |
| $60,000 | $5,500 | $4,590 | $49,910 | $4,159 |
| $75,000 | $8,000 | $5,738 | $61,262 | $5,105 |
| $100,000 | $12,500 | $7,650 | $79,850 | $6,654 |
Note: No state income tax deduction required in Tennessee.
Use our paycheck calculator or take-home pay calculator for personalized calculations.
Housing Costs by City
Housing is where Tennessee’s affordability really shines — outside Nashville:
| City | Median Home Price | Median Rent (1BR) | Affordable at Salary |
|---|---|---|---|
| Nashville | $450,000 | $1,600 | $95,000+ |
| Franklin | $650,000 | $1,900 | $130,000+ |
| Memphis | $220,000 | $1,000 | $50,000+ |
| Knoxville | $320,000 | $1,200 | $65,000+ |
| Chattanooga | $350,000 | $1,300 | $70,000+ |
Nashville has seen 50%+ price growth since 2020, transforming from an affordable city to one approaching national average. If you’re priced out of Nashville, Memphis offers similar amenities at roughly half the housing cost — see our guide on how much house you can afford.
Nashville Metro Growth Impact
Nashville’s rapid growth has dramatically changed what salary is needed to buy a typical home:
| Year | Nashville Median Home | Required Salary | % Increase |
|---|---|---|---|
| 2020 | $290,000 | $55,000 | — |
| 2022 | $425,000 | $80,000 | +45% |
| 2024 | $440,000 | $85,000 | +55% |
| 2026 | $450,000 | $87,000 | +58% |
The Nashville squeeze: In just 6 years, the salary needed to buy a median Nashville home increased by over $30,000. Many workers are now choosing to live in surrounding areas like Murfreesboro, Lebanon, or even commute from Clarksville.
Who Earns What in Tennessee
| Profession | Average Salary | vs. “Good” Threshold |
|---|---|---|
| Registered Nurse | $68,000 | ✅ |
| Software Developer | $95,000 | ✅ |
| Teacher | $52,000 | ⚠️ Memphis ✅ / Nashville ❌ |
| Accountant | $72,000 | ✅ |
| Healthcare Administrator | $85,000 | ✅ |
| Restaurant Manager | $55,000 | ✅ (outside Nashville) |
See our salary guides for nurses, teachers, and software engineers.
Related Guides
- Good salary in Georgia
- Good salary in North Carolina
- Good salary in Texas
- US income percentile calculator
- Tennessee tax guide
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