A+
11%
Overall NAT. AVG.
11%
Goods & Services NAT. AVG.
18%
Housing NAT. AVG.
Search Homes for Sale
Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Knoxville Tennessee National
Cost of living8989100
Goods & Services8994100
Groceries9998100
Health care8888100
Housing8280100
Transportation8989100
Utilities9493100

An Overview of Cost of Living in Knoxville, TN

Knowing the cost of living in Knoxville allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Knoxville stands at 89, marking it 11% lower than the national average.

Everyday necessities such as clothing, personal hygiene products and recreational activities collectively contribute to the overall cost of living. The favorable news is that in Knoxville, these essential goods and services are priced 11.3% below the national average. This translates to the ability to procure essential items and indulge in leisure activities without depleting one's financial resources excessively. With the resulting savings, individuals have the opportunity to allocate additional funds towards their savings or other financial objectives.

What Do Locals Say About the Cost of Living in Knoxville?

Nobody knows their city better than the people who actually live there. So, we asked 20 local residents how they would rate the cost of living in Knoxville and this is how they responded. 45% of people said that the cost of living was affordable, with prices decreasing, while 55% of people said that the cost of living was very expensive and prices continue to rise.

Is Knoxville Affordable?

Is Knoxville an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Knoxville is 22.7% lower than the national average, while the average monthly rent prices are 7% lower than average. The affordability of any location can also be influenced by median income levels. Knoxville has a median household income of $41,598, which is 24.8% lower than the national average.

What Factors can Influence the Cost of Living in Knoxville?

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Knoxville, the groceries index is 0.9% lower than the national average.

Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Knoxville, the transportation index stands at 10.7% lower than the national average.

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

Where is the Data From?

The Knoxville cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

New Real Estate Listings in Knoxville Area
Search Homes for Sale in Knoxville, TN

Cost Of Living Quick Facts

  • The cost of living in Knoxville is 1% lower than the Tennessee average
  • The cost of living in Knoxville is 11% lower than the national average
  • Knoxville housing is 18% lower than the national average
  • Tennessee general sales tax is 37% higher than the national average
  • Tennessee state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Knoxville

See all the best places to live around Knoxville

Compare Knoxville, TN Cost of Living

      vs
      How would you rate the cost of living in Knoxville?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Knoxville?
      Write a review to give others more information about this area.
      See all Knoxville poll results

      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$57,566$4,797$1,343$1,727
      Renters$30,285$2,524$707$909
      A good way to judge both the affordability of the housing and the cost of living in Knoxville is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Knoxville has a median income of about $57,566 for people who own homes. Based on that number, a maximum of $1,343 should be spent on expenses related to housing. Renters have a slightly different median income, which is $30,285. Based on this average, renters should spend no more than $707 on all rental costs if they want to maintain a non-impoverished standard of living.

      Tennessee Sales Tax

      State General Sales Tax With Max Surtax
      Tennessee 7% 9.75%

      Tennessee Income Tax

      State Income Tax (Low) Income Tax (High)
      Tennessee 0% 0%

      Goods & Services

      Item Knoxville National avg. Difference
      Haircut $17.07$24.2629.7%
      Beauty Salon $42.00$45.567.8%
      Toothpaste $3.69$3.700.4%
      Shampoo $1.23$1.283.9%
      Movie $12.31$12.131.5%
      Bowling $21.60$18.0020.0%

      Groceries

      Item Knoxville National avg. Difference
      Ground Beef $5.73$5.841.8%
      Fried Chicken $1.42$1.579.5%
      Milk $4.67$4.670.0%
      Potatoes $5.03$4.932.0%
      Pizza $11.42$12.095.5%
      Beer $10.06$10.413.3%

      Health Care

      Item Knoxville National avg. Difference
      Optometrist $92.00$125.6826.8%
      Doctor $112.00$135.7817.5%
      Dentist $92.27$113.2918.6%
      Ibuprofen $10.49$10.651.6%
      Lipitor $517.33$468.6010.4%

      Housing

      Item Knoxville National avg. Difference
      Home Price $142,700.00$184,700.0022.7%
      Avg. Mortgage Payment $1,886.05$2,346.6919.6%
      Apartment Rent $883.00$949.007.0%

      Transportation

      Item Knoxville National avg. Difference
      Gasoline $3.11$3.4610.3%
      Tire Balancing $52.80$59.9211.9%

      Utilities

      Item Knoxville National avg. Difference
      All Electricity $173.24$193.9910.7%
      Phone $192.18$192.250.0%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Plainview, TN2,1108514.9%
      Mascot, TN2,6818514.8%
      Eagleton Village, TN5,8098712.5%
      Blaine, TN1,9878812.2%
      Alcoa, TN9,8098811.8%
      Knoxville, TN187,4878911.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Frisco, TX188,38714039.8%
      Cape Coral, FL189,63311211.9%
      Worcester, MA185,18611414.1%
      Shreveport, LA189,890937.1%
      Mobile, AL189,994909.6%
      Knoxville, TN187,4878911.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.