Moving to Tennessee: What You Need to Know
Tennessee is one of the most popular domestic migration destinations, driven by no state income tax, low property taxes, and Nashville's explosive growth as a cultural and economic hub. Nashville has attracted major companies including Amazon (5,000-job operations hub), Oracle, and AllianceBernstein, while its music, food, and entertainment scenes draw both tourists and transplants. Chattanooga offers world-class outdoor recreation and the fastest internet in America (EPB Fiber). The state gained over 300,000 new residents between 2020 and 2025, with most settling in the Nashville metro and surrounding suburbs.
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Cost of Living in Tennessee
Median Home Price
$340,000
Median Monthly Rent
$1,350/mo
Avg Local Move
$880
Avg Long-Distance Move
$3,800
Taxes in Tennessee
| Tax Type | Rate |
|---|---|
| State Income Tax | None |
| Effective Property Tax | 0.64% |
| State Sales Tax | 7% + local up to 2.75% |
Job Market & Economy
Tennessee Climate & Weather
Mild winters (30s–50s°F) and hot, humid summers (90s°F). Eastern Tennessee near the Smokies is cooler. The state gets moderate snow in the mountains and rare snow in Nashville and Memphis. Spring storms and occasional tornadoes.
Best Cities to Move to in Tennessee
Pros and Cons of Living in Tennessee
Pros
- +No state income tax
- +Very low property taxes at 0.64%
- +Nashville is one of the fastest-growing and most exciting cities in America
- +Rich culture and music heritage across the state
Cons
- -Very high combined sales tax (9.75% in Nashville)
- -Nashville housing costs have risen dramatically
- -Hot, humid summers
- -Tornado and severe storm risk in spring
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Frequently Asked Questions
How much does it cost to move to Tennessee?
A local move within Tennessee averages $800–$1,300. Moving from neighboring states costs $1,000–$2,500. Cross-country moves to Tennessee typically run $3,500–$7,000. Nashville is a high-demand destination -- mover availability can be tight in summer months.
Is Nashville still a good place to move to?
Nashville remains one of the most dynamic cities in America, but costs have risen significantly. Median home prices in Davidson County are around $420,000, and popular suburbs like Franklin and Brentwood exceed $600,000. However, areas like Murfreesboro, Mount Juliet, and Hendersonville offer more affordable options (median $350,000–$400,000) within a 30–45 minute commute. The job market is excellent, with healthcare (HCA, Vanderbilt), tech, and entertainment driving growth.
What about Tennessee's sales tax?
Tennessee's state sales tax is 7%, and most areas add 2–2.75% in local taxes, making the effective rate 9.25–9.75% -- among the highest in the nation. Groceries are taxed at a reduced rate of 4%. This high sales tax is Tennessee's primary revenue source in lieu of income tax. For high earners, the absence of income tax more than offsets the sales tax, but for lower-income households, the sales tax is regressive.
Is Chattanooga worth considering?
Chattanooga is an underrated gem with stunning scenery (Lookout Mountain, Tennessee River), the fastest consumer internet in America via EPB Fiber (10 Gbps), a growing outdoor recreation economy, and more affordable housing than Nashville (median around $300,000). The city has invested heavily in its riverfront, downtown, and innovation district. It's smaller (about 185,000) but punches above its weight for livability.
What are Tennessee taxes like overall?
Tennessee has no state income tax (eliminated the Hall Tax on investment income in 2021). Property taxes are very low at 0.64% average. The main tax is sales tax at 9.25–9.75% combined rate. There is no estate or inheritance tax. For a household earning $150,000, the income tax savings compared to a state like California ($14,000+) or New York ($10,000+) are substantial, making Tennessee a top destination for tax-motivated relocations.