Memphis, TN Cost of Living (2026)

Memphis has a cost of living index of 80, about 20% below the national average. The housing index is 55. A one-bedroom apartment in Memphis rents for around $750 to $1,000 per month, and median home prices are among the lowest of any large US city, often ranging from $130,000 to $180,000. The median household income is approximately $42,000, which reflects the significant economic challenges the city faces, including a high poverty rate and a workforce concentrated in lower-wage logistics and service sectors.

A $100,000 salary in Memphis is worth approximately $125,000 relative to the national average. That is one of the largest real income advantages available in any US city. Workers who earn salaries tied to national labor markets, particularly in remote work, technology, or finance, gain substantial purchasing power here that would be difficult to match in most other cities.

Tennessee has no state income tax on wages. There is no Memphis city income tax on wages either. The sales tax rate, however, is high: combined state and local sales tax in Shelby County runs around 9.75%. Property taxes in Memphis are moderate in dollar terms, given low home values, though effective rates as a percentage of assessed value run around 1.5 to 1.8%.

Memphis's affordability comes with context. The city has high crime rates relative to national averages, and neighborhood quality varies significantly across relatively short distances. The metro area's suburban communities, particularly Germantown, Collierville, and Cordova in Shelby County, offer better school systems and lower crime rates at higher housing costs than the city core, though still well below national averages. Workers evaluating Memphis should think carefully about which part of the metro they would actually live in, rather than treating the city as a uniform option.