Tennessee
South · Capital: Nashville · Music, mountains, and no income tax.
Population
7.1M
Median Home
$335K
Median Rent
$1,450/mo
Avg Salary
$56,000
Income Tax
None
Cost of Living
Why people move to Tennessee
Tennessee has been one of the country's hottest destinations, drawing transplants with no state income tax, a moderate cost of living, and the booming culture of Nashville — Music City has become a magnet for healthcare, tech, and creative jobs. Memphis, Knoxville, and Chattanooga each offer their own affordable, distinctive appeal.
Rapid growth has pushed up Nashville home prices, and the state sits in an active tornado zone. But warm weather, the Smoky Mountains, world-famous music, and the absence of an income tax keep it near the top of migration charts.
Region
South
Capital
Nashville
Homeownership
67%
Unemployment
3.3%
Top cities
Nashville
Population 690K
Music City with booming healthcare and tech.
Memphis
Population 628K
Blues, barbecue, and a global logistics hub.
Knoxville
Population 198K
University of Tennessee town near the Smokies.
Chattanooga
Population 185K
Scenic river city famed for gigabit internet.
Clarksville
Population 170K
Fast-growing city near Fort Campbell.
Franklin
Population 84K
Affluent, historic Nashville suburb.
Cost of living breakdown
Indexed to the U.S. national average (100). Tennessee's overall cost index is 92 — a moderate cost state.
Housing
Median Home
$335K
Median Rent
$1,450/mo
Property Tax
0.66%
Homeowners
67%
| City | Cost level | Est. rent (1BR) |
|---|---|---|
| Nashville | High cost | $1,825/mo |
| Memphis | Low cost | $1,150/mo |
| Knoxville | Low cost | $1,150/mo |
| Chattanooga | Moderate cost | $1,450/mo |
| Clarksville | Low cost | $1,150/mo |
About 67% of residents own their homes. Effective property tax runs near 0.66% of assessed value — budget this into any purchase.
Housing assistance in Tennessee
Explore Tennessee vouchers, affordable apartments, down-payment help, rental & utility assistance, senior, veteran, and disability housing — with eligibility and how to apply.
Jobs & economy
Top industries
Major employers
- HCA Healthcare
- FedEx
- Nissan North America
- Vanderbilt University Medical Center
Unemployment
3.3%
Remote-friendly
High
Illustrative salaries by sector
Schools & education
K–12 & top districts
Tennessee public schools serve families across urban and suburban districts. Sought-after systems cluster around its largest metros — including Nashville area schools, Memphis area schools, Knoxville area schools.
Universities & colleges
- Vanderbilt University
- University of Tennessee
- University of Memphis
Healthcare
Major hospitals & systems
- Vanderbilt University Medical Center
- Methodist Le Bonheur Healthcare
Access & insurance landscape
Care access is strongest in and around Nashville. Most residents use employer or marketplace (ACA) plans; rural areas can mean longer drives to specialist care, so factor network coverage into where you settle.
Transportation & getting around
Walk score
37/100
Transit
Car-dependent, with bus systems in the major cities and no regional rail.
I-75, I-85, and I-10 link fast-growing metros across the region. Average one-way commute is about 24 minutes; walkability scores near 37/100 statewide, higher in the largest cities.
Airports & hubs
Nashville
Fast-growing Southeast gateway
Memphis
FedEx global superhub
Weather & natural disaster risk
Humid subtropical with hot summers, mild winters, and colorful autumns.
Taxes
State income tax
None
State sales tax
7%
Property tax
0.66%
No state income tax. Statewide sales tax is 7% (local add-ons may apply), and effective property tax averages 0.66% of home value. No state income tax makes this an attractive base for high earners and retirees.
Driver license & vehicle registration
New-resident timeline
30 days to register, 30 days for license.
Bring proof of identity, residency, and vehicle title. Expect a vision test and title transfer fees; a REAL ID upgrade needs extra documents.
Emissions testing
Required (some counties)
Typical license fee
$55–$110
Business registration & climate
LLC filing fee
$300
Corp income tax
Favorable
Startup climate
Vibrant
Best for founders
Yes
Form an LLC through the Secretary of State's online portal for around $300. Startup resources include the Nashville Small Business Development Center, local SCORE chapters, and university programs at Vanderbilt University.
Commercial space & coworking
Office and retail leasing is most active in Nashville and Memphis. Rates track the state's moderate cost profile — expect a premium downtown and value in suburban submarkets.
Vendor & pop-up events
CMA Fest
The biggest country-music festival in the world, in Nashville.
Bonnaroo
A legendary multi-genre music festival in Manchester.
Churches & community resources
Faith communities
A Bible Belt heart, with deep Baptist and evangelical roots and vibrant gospel traditions.
Getting connected
Community centers, libraries, and newcomer meetups in Nashville and Memphis are great first stops to build a network.
Diverse communities
Memphis has a large African American community central to its blues and soul heritage, plus a growing Latino population.
The honest take on Tennessee
Pros
- No state income tax
- Booming Nashville economy and music scene
- Moderate cost of living and mild climate
Cons
- Rising Nashville home prices
- High tornado risk
- High sales tax
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