Living in Memphis in 2025 presents a unique financial picture. With a Cost of Living Index of 84 (where 100 is the national average), it is considered more affordable than the typical US city. Memphis offers exceptionally affordable living with Tennessee's 0% income tax. Budget stretches further in the birthplace of rock and roll. This guide breaks down the real costs of housing, food, and transportation to help you decide if Memphis is right for your budget.
Cost of Living in Memphis, TN (2025 Edition)
Music City Affordability with No State Income Tax
Data Verified: Jan 2026 • IRS • BLS • Zillow
Interactive Lifestyle Calculator
Adjust the numbers below to match your actual situation in Memphis.
Lifestyle & Salary AdjusterDefaults
$
Estimated Monthly Net$5,200
Tax Rate
17% (Fed + Memphis State)
TightBalancedWealthy
Thriving (Score: 100)
ExcellentYou have plenty of room for savings and fun!
Monthly Costs for Memphis
$
$
$
$
Needs Ratio
30%
Basics vs Net Income.
Goal: <50%
Leftover / Mo
$3,475
For Savings, Debts, Fun.
Try to invest this!
What do these numbers mean?
- Needs Ratio: Percentage of your net pay going to essentials. Lower is better.
- Leftover: Your "Freedom Money". This is what you have for lifestyle, travel, and building wealth.
Want to see how other salaries compare?Scroll Down for Benchmarks & City Comparisons
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See Detailed Salary Breakdowns for Memphis
🏛️ The Tax Bite
Taxes play a huge role in your take-home pay. One of the massive perks of Memphis is the 0% State Income Tax. Fortunately, there is no verified local city income tax levied directly on employees in Memphis, simplifying your paycheck calculations slightly.
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Expense Breakdown (Monthly)
Median Rent (1bd)
$1,050
Groceries
$290
Utilities
$145
Transport
$90
🏠 Housing Reality
Housing is rightfully the biggest concern for newcomers. The median rent for a 1-bedroom apartment in Memphis currently hovers around $1,050/month. For families or those needing more space, a 3-bedroom unit jumps to approximately $1,600.
To put this in perspective, you would need a net monthly income of roughly $3,150 to adhere to the standard "30% rule" for housing affordability.
🛒 Daily Expenses & Transport
Beyond rent, daily expenses in Memphis add up. Expect to budget around $290 monthly for groceries per person, and $145 for basic utilities (electricity, heating, cooling, garbage).
Transportation costs, estimated at $90, can vary significantly depending on whether you rely on public transit or own a vehicle. Transit costs are relatively moderate compared to other major metros.
💼 Local Economy & Job Market
The Memphis Job Market in 2025: Memphis offers a compelling value proposition for job seekers. The balance between reasonable living costs and available opportunities makes it an attractive destination for both young professionals and families looking to maximize their savings.
The absence of state income tax is a significant draw for high earners, effectively giving you an immediate raise compared to living in states like California or New York.
📦 Relocation Tips
Planning Your Move to Memphis:
• Housing Search: Start looking at least 2-3 months before your move. You should have reasonable options across different neighborhoods within your budget.
• Budgeting: Our data suggests you need a gross salary of approximately $38,000 or higher to live comfortably in Memphis while still saving 20% of your income.
• Neighborhoods: Research different areas carefully. Rent prices can vary by 20-40% between neighborhoods just 15 minutes apart.
• Timing: The rental market is relatively stable year-round.
• Housing Search: Start looking at least 2-3 months before your move. You should have reasonable options across different neighborhoods within your budget.
• Budgeting: Our data suggests you need a gross salary of approximately $38,000 or higher to live comfortably in Memphis while still saving 20% of your income.
• Neighborhoods: Research different areas carefully. Rent prices can vary by 20-40% between neighborhoods just 15 minutes apart.
• Timing: The rental market is relatively stable year-round.
💰 Salary Benchmarks
What Salary Do You Need in Memphis?
Based on our 2025 calculations using the 50/30/20 budgeting rule:
• Survival Mode (~60% to needs): Minimum $30,000 gross salary
• Comfortable Living (50% to needs): Recommended $38,000 gross salary
• Thriving (under 40% to needs): Aim for $45,000+ gross salary
These figures assume a single person renting a 1-bedroom apartment. Couples and families should adjust accordingly based on their specific circumstances.
Based on our 2025 calculations using the 50/30/20 budgeting rule:
• Survival Mode (~60% to needs): Minimum $30,000 gross salary
• Comfortable Living (50% to needs): Recommended $38,000 gross salary
• Thriving (under 40% to needs): Aim for $45,000+ gross salary
These figures assume a single person renting a 1-bedroom apartment. Couples and families should adjust accordingly based on their specific circumstances.
Compare with Other Cities
Frequently Asked Questions
Is Memphis expensive to live in?
Compared to many major metros, Memphis is relatively affordable with a Cost of Living index of 84.Housing is the primary driver of these costs.
What is a good salary in Memphis?
To live comfortably in a 1-bedroom apartment (following the 50/30/20 rule), a single person should aim for a gross salary of at least $38000. Families or those wanting to save aggressively may need significantly more.