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Cost of Living in the Memphis Area
Home prices, property taxes, and the everyday math — why the Memphis metro stretches your dollar further than most.
One of the best parts of moving to Memphis is the math. Compared with most major U.S. metros, the cost of living here is well below average — and housing is the biggest reason why. Here's an honest local rundown of what it costs to live in the Memphis area in 2026.
Housing is the headline
This is where the metro really wins. Per Zillow's spring 2026 data, typical values run roughly in the mid-$460,000s in Germantown and right around $500,000 in Collierville — the premium suburbs — while Bartlett sits in the low-$300,000s and the Arlington area in the $370,000s. Memphis proper is far more affordable, with a median closer to $150,000. For many people relocating from the coasts or larger metros, the same budget buys dramatically more house and land here. See the latest market update for the full picture, and model a payment with the mortgage calculator.
No state income tax
Tennessee has no state income tax on wages — the old Hall tax on investment income was fully phased out in 2021. For a relocating household, that's a quiet but significant raise compared with states that tax income, and it offsets some of the higher-rate mortgage environment.
Property taxes: city plus county
Here's the one to understand. Property taxes fund a lot locally, and if your home is inside an incorporated city like Germantown, Collierville, Bartlett, or Arlington, you'll pay both a city and a Shelby County tax. Homes in unincorporated areas (parts of Eads and the county fringe) generally pay only the county portion. Effective rates in the metro tend to land in the low-to-mid 1% range of value, but they vary by jurisdiction, so I'll pull the actual figures for any specific home before you buy.
Everyday costs
Beyond housing and taxes, the day-to-day — groceries, utilities, gas, dining out — generally runs at or below national averages across the Memphis area, which is a big part of why paychecks stretch further here. Your exact numbers depend on lifestyle and where you land, but the overall picture is consistent: this is an affordable place to live well.
The bottom line for movers
Lower home prices, no state income tax, and reasonable everyday costs add up to real breathing room — the kind that lets families buy more home, save more, or both. If you tell me where you're moving from, I can give you a candid sense of how your current costs will translate here.
FAQ
Cost-of-living questions, answered
Is the Memphis area cheaper than the national average?
Yes - the Memphis metro's overall cost of living generally runs below the U.S. average, driven mostly by affordable housing. Combined with no state income tax, a relocating household's budget typically goes noticeably further here than in most large metros.
Does Tennessee have a state income tax?
No. Tennessee does not tax wage income, and the former Hall tax on interest and dividends was fully repealed as of 2021. That's an ongoing benefit for anyone moving here from an income-tax state.
How much are property taxes in the Memphis suburbs?
Homes inside incorporated cities like Germantown, Collierville, Bartlett, and Arlington pay both a city and a Shelby County property tax; unincorporated areas generally pay only the county portion. Effective rates commonly fall in the low-to-mid 1% of value, but vary by jurisdiction - I'll confirm the exact figure for any specific home.
What's the median home price in Germantown or Collierville?
Per Zillow's spring 2026 data, typical values are roughly in the mid-$460,000s in Germantown and around $500,000 in Collierville, with Bartlett in the low-$300,000s and the Arlington area in the $370,000s. Prices move, so I'll share current numbers for your target neighborhood.
Work With Me Directly
Matt Mitchell, REALTOR®
I'm a REALTOR® and part of a third-generation Memphis-area real estate family. I confirm the exact school zoning for every home my clients tour — no guessing, no surprises. I'm the one who answers the phone.
Doing the Math on a Move?
Let me help you pencil out the real numbers.
Tell me your budget and where you're coming from, and I'll show you what it actually buys here - neighborhood by neighborhood. Call or text (901) 701-8738.