Cost of Living, Taxes & Financial Comparison (2026)
Tennessee is 7% cheaper to live in than Pennsylvania overall.
Income Tax
Pennsylvania: 3.07%
Tennessee: No income tax
Property Tax
Pennsylvania: 1.65%
Tennessee: 0.71%
Median Home
Pennsylvania: $305,000
Tennessee: $345,000
COL Index
Pennsylvania: 100
Tennessee: 93
State Income Tax
Top marginal rate
Property Tax Rate
% of home value annually
Median Home Price
2026 estimate
Avg. Insurance Cost
Home insurance annually
Cost of Living Index
100 = national average
Effective Tax Burden
Income + property tax combined
Pennsylvania taxes income at up to <strong>3.07%</strong>, while Tennessee has no state income tax. On property taxes, Pennsylvania charges 1.65% annually vs 0.71% in Tennessee. On a $305,000 home in Pennsylvania, that's $5,033/year in property taxes vs $2,450/year on a median-priced home in Tennessee. Overall, Tennessee has the lower combined tax burden.
The median home price in Pennsylvania is $305,000 compared to $345,000 in Tennessee — a difference of $40,000 (13%). Pennsylvania offers more affordable homeownership, with lower down payments and monthly mortgage payments. Factor in property tax rates: annual taxes on a median home are $5,033 in Pennsylvania vs $2,450 in Tennessee.
Pennsylvania's cost of living index is 100 and Tennessee's is 93 (national average = 100).Tennessee is approximately 7% cheaper overall. Home insurance also varies: Pennsylvania averages $1,440/year vs $1,560/year in Tennessee. Over 10 years, the cost of living difference could amount to tens of thousands of dollars in savings for residents of Tennessee.
👴 Retirees
→ Tennessee
Tennessee has no state income tax, making Social Security and retirement income go further.
👨👩👧 Families
→ Pennsylvania
Pennsylvania offers more affordable housing, which is critical for families needing space.
💼 High Earners
→ Tennessee
Tennessee has a lower top income tax rate, keeping more of high salaries in your pocket.
💻 Remote Workers
→ Tennessee
Tennessee's lower cost of living (index: 93) lets remote workers maximize purchasing power without sacrificing location.
Tennessee has a lower cost of living index (93 vs 100). Tennessee is approximately 7% cheaper overall.
Pennsylvania has a 3.07% top income tax rate and 1.65% property tax rate. Tennessee has a No income tax top income tax rate and 0.71% property tax rate. Tennessee has the lower combined burden.
Median home price in Pennsylvania is $305,000 vs $345,000 in Tennessee — a 13% difference of $40,000.
Tennessee is often better for retirees since it has no state income tax, meaning Social Security and retirement distributions aren't taxed at the state level.
Pennsylvania's effective property tax rate is 1.65% vs 0.71% in Tennessee. Tennessee has the lower rate.
Pennsylvania's cost-of-living index is 100 (US = 100) vs 93 for Tennessee — a gap of 7 index points.
Small-business friendliness depends on income tax (3.07% vs No income tax), corporate tax, sales tax, and licensing burden. Use the breakdown table on this page; for personalized analysis, consult a CPA.
Data is sourced from the U.S. Census Bureau (ACS), Tax Foundation, BLS OEWS wage tables, Zillow ZHVI, and Freddie Mac PMMS. Each value is timestamped and refreshed via our hourly ETL.
Live series (mortgage rates) refresh hourly. State-level tax tables refresh on each Tax Foundation release. Page caches revalidate every 24 hours via Next.js ISR.
No. This page provides an educational side-by-side using public data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for material decisions.
State income tax shown is the top marginal rate from the Tax Foundation[1] and state DOR publications[3]. Effective rate on median income differs; the "effective tax burden" metric in the comparison table approximates income tax as (top marginal / 2) + property tax rate.
Property tax rate is the effective rate (taxes paid as % of owner-occupied home value)[1]. Actual millage rates vary by county and city; these are statewide averages.
Median home price is the Zillow Home Value Index (ZHVI) statewide typical home value[2].
Cost of Living Index is the BEA Regional Price Parity[4] normalized so 100 = national average.
Homeowners insurance averages are NAIC HO-3 annual premiums[5].
Macro figures (unemployment, real median household income) come from FRED[6] and the Census ACS[7].
"Who wins by group" (retirees, families, high earners, remote workers) is a simplified decision framework; personal circumstances vary.
Last reviewed is the maximum retrievedAt timestamp across the datasets this page consumes.
State data sourced from Tax Foundation[1], U.S. Census Bureau[7], Zillow Research[2], and state revenue agencies[3]. Last reviewed .