Wondering how far your dollar stretches in Memphis compared to Chattanooga? Below we break down housing costs, rent, taxes, income, and quality of life using 2026 data so you can make an informed relocation or remote-work decision. Every number is computed from Census, BLS, and Zillow data specific to these two metro areas.
| Memphis | Metric | Chattanooga | Difference |
|---|---|---|---|
| 84 | Cost of Living Index | 92 | +9.5% |
| $195,000 | Median Home Price | $270,000 | +38.5% |
| $908 | Median Monthly Rent | $1,100 | +21.1% |
| $50,200 | Median Household Income | $57,800 | +15.1% |
| 0.7% | Property Tax Rate | 0.7% | +0.0% |
| 5.4% | Unemployment Rate | 3.3% | -38.9% |
| 24 min | Average Commute | 22 min | -8.3% |
| 35.4 | Median Age | 37 | +4.5% |
| 1,360,000 | Metro Population | 580,000 | -57.4% |
Data sourced from Census Bureau, BLS, Zillow, and ApartmentAdvisor (2024-2025). COL Index: 100 = national average.
Monthly mortgage assumes 6.5% interest, 30-year fixed, 20.0%down payment. PITI includes principal, interest, property tax, and homeowner's insurance.
Buying a home in Memphis costs $1,155/month (PITI) compared to $1,599/month in Chattanooga — a difference of $444/month or $5,328/year. The price-to-income ratio is 3.9x in Memphis versus 4.7x in Chattanooga, suggesting Memphis is relatively more affordable for homebuyers relative to local incomes. At a 15% savings rate, it takes 5.2 years to save a down payment in Memphis compared to 6.2 years in Chattanooga.
Estimated on each city's median household income, single filer, standard deduction, 2025 rates.
| Tax Category | Memphis | Chattanooga |
|---|---|---|
| Gross Income | $50,200 | $57,800 |
| State Income Tax | None | None |
| Federal Income Tax | $3,895 | $4,807 |
| FICA (SS + Medicare) | $3,840 | $4,422 |
| Property Tax (on median home) | $1,346/yr | $1,863/yr |
| State Sales Tax Rate | 7.0% | 7.0% |
| Total Tax Burden | $7,735 (15.4%) | $9,229 (16.0%) |
| Take-Home Pay | $42,465 | $48,571 |
Tennessee has no state income tax, giving Memphis residents a significant tax advantage. On median household income, total taxes (federal + state + FICA) come to $7,735 in Memphis (15.4% effective) versus $9,229 in Chattanooga (16.0% effective). After taxes, take-home pay is $42,465 in Memphis and $48,571 in Chattanooga. Property taxes add $1,346/year on the median Memphis home versus $1,863/year in Chattanooga.
These figures adjust for cost of living using the formula: adjusted = salary × (COL_destination / COL_origin). If you earn $50,200 in Memphis (COL 84) and relocate to Chattanooga (COL 92), you would need $54,981 to maintain the same purchasing power. This means you would need a raise of $4,781 to maintain the same standard of living in Chattanooga.
Beyond costs, quality of life matters. The average commute in Memphis is 24 minutes versus 22 minutes in Chattanooga, a difference of 2 minutes each way. Chattanooga's lower unemployment rate of 3.3% versus 5.4% suggests a stronger job market. Chattanooga skews slightly older with a median age of 37 vs 35.4 in Memphis.
Chattanooga is 9.5% more expensive than Memphis overall. Chattanooga has a cost of living index of 92 compared to 84 for Memphis (national average = 100). The biggest difference is housing: the median home costs $270,000 in Chattanooga vs $195,000 in Memphis.
The median home price in Chattanooga is $270,000, which is $75,000 more than Memphis's median of $195,000. Monthly rent follows a similar pattern: $1,100/month in Chattanooga vs $908/month in Memphis, a difference of $192/month or $2,304/year.
To maintain the same standard of living, a $50,200 salary in Memphis is equivalent to $54,981 in Chattanooga. This is based on the cost of living index ratio: Memphis's COL index of 84 vs Chattanooga's 92. Conversely, $57,800 in Chattanooga equals $52,774 in Memphis.
On a median household income, the combined federal, state, and FICA tax burden is $7,735 (15.4% effective rate) in Memphis vs $9,229 (16.0% effective rate) in Chattanooga. Property taxes on the median home are $1,346/year in Memphis (0.7% rate) vs $1,863/year in Chattanooga (0.7% rate). Sales tax rates are 7.0% in Tennessee and 7.0% in Tennessee.
Memphis median household income: $50,200/yr. Chattanooga median household income: $57,800/yr (Census ACS).
Median monthly rent: $908 in Memphis vs $1,100 in Chattanooga. Annualized that is $10,896 vs $13,200.
Memphis offers a lower cost of living (index 84 vs 92), which lets remote-workers keeping a coastal salary stretch further. Chattanooga typically wins on amenities and labor-market depth.
Memphis and Chattanooga numbers are pulled from Zillow ZHVI/ZORI (home values, rent), the U.S. Census Bureau ACS (income, demographics), and BEA RPP (cost-of-living index). Each value is timestamped on the page.
Source feeds (Zillow, Freddie Mac PMMS, Census ACS, BEA RPP) are refreshed on their native cadence. Page caches revalidate every 24 hours via Next.js ISR.
No. The Memphis vs Chattanooga cost-of-living page is educational reference using public data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for material decisions.
Home prices use Zillow Home Value Index (ZHVI)[1]; rents use Zillow Observed Rent Index (ZORI)[1]. Median household income comes from the Census ACS 5-year estimates[2].
COL indices use the BEA Regional Price Parity methodology[3], normalized so 100 = national average.
Property tax rates are effective rates from the Tax Foundation[4], expressed as % of owner-occupied home value. Mortgage estimates assume 6.5% fixed rate[5], 30-year term, 20.0% down, $1,800/yr homeowners insurance.
Federal tax calculations[6] assume single filer, standard deduction. State tax uses the top marginal rate times taxable income after the state standard deduction. FICA = 6.2% Social Security (up to wage base) + 1.45% Medicare.
Salary equivalence uses adjusted = salary × (COL_destination / COL_origin). This captures cost-of-living shift but not state income tax differences.
Unemployment figures are the most recent monthly MSA-level readings from the BLS LAUS series[7].
Last reviewed is computed from the maximum retrievedAt across every source this page consumes.
City data from Census Bureau[2], BLS[7], and Zillow[1] (2024-2025). Tax calculations use 2025 IRS rates[6], single filer, standard deduction. Mortgage estimates assume 6.5% PMMS rate[5], 30-year term, 20.0% down. COL Index: 100 = national average[3]. Last reviewed .