Reasons People Are Leaving Tennessee in 2026

People leaving Tennessee in 2026 most often point to the same few reasons: home prices that have climbed much faster than incomes, one of the highest sales tax rates in the country, uneven schools and rural healthcare, and job markets that thin out quickly outside Nashville. What the headlines often miss is that Tennessee as a whole is still gaining residents. The latest Census Bureau estimates show about 42,400 more people moved to Tennessee from other states than moved away in the year ending July 1, 2025, and most of the departures are concentrated in Memphis and the rest of West Tennessee.

This guide, updated for 2026, walks through the real numbers behind both trends, the most common reasons people move out, and what to compare before you decide. Spyder Moving and Storage, which runs a Memphis office at 3290 New Getwell Rd, helps households on both sides of that decision, whether they are leaving the state or moving within it.

How many people are leaving Tennessee in 2026?

Fewer than the question suggests. According to the University of Tennessee’s Boyd Center, which analyzes Census Bureau estimates for the state, Tennessee gained a net 42,389 residents from other states between July 2024 and July 2025, the fourth-highest net domestic gain in the country after North Carolina, Texas, and South Carolina. The state’s population reached 7,315,076, an increase of 63,785 in one year.

The trend is slowing, though. Net domestic migration peaked in 2022 and has declined for three straight years, and international migration fell from nearly 48,000 in 2024 to about 18,000 in 2025.

The departures are regional. In 2025, 87 of Tennessee’s 95 counties gained more domestic movers than they lost, and the few counties that lost more movers than they gained were mainly in the western third of the state. Shelby County had the largest net domestic loss in Tennessee, at 11,670 people. In Memphis, limited jobs top the list of reasons people are leaving Memphis, along with crime, taxes, and weather.

The table below shows how Tennessee compares with the national average on the numbers that drive most relocation decisions.

Source: U.S. Census Bureau QuickFacts (Vintage 2025 population estimates and American Community Survey 5-year estimates, 2020–2024).

Why are people moving out of Tennessee?

No single reason explains it. Most households that leave weigh several of the factors below at once, and the mix is different for a young professional in Nashville than for a retired couple in a rural county.

Housing costs have risen faster than incomes

Tennessee is still cheaper than the national average on paper. The state’s median home value of $286,700 and median rent of $1,189 are both below the U.S. figures. But prices have moved fast: the Federal Housing Finance Agency’s house price index for Tennessee rose about 71% between the second quarter of 2020 and the second quarter of 2026. Incomes have not kept pace, and the state’s median household income of $69,595 is about $11,000 below the national median.

The pressure is highest in and around Nashville, where the median home value is $413,600 and median rent is $1,586. Price growth has cooled to about 2.6% over the latest year, but for many buyers and renters, housing has stopped being the bargain that brought them to Tennessee. If you are weighing whether to stay, this look at how the Memphis housing market is changing breaks down prices, inventory, and renting versus buying. When it comes time to move, a team of trusted residential movers can handle the logistics while you focus on finding a home that fits your budget.

Fewer high-paying jobs outside Nashville

Tennessee’s economy is strong overall, but specialized jobs in technology, finance, and corporate headquarters are concentrated in the Nashville area. Outside the big metros, career options can be limited for professionals and recent graduates, and manufacturing, logistics, and agriculture remain the main employers in many counties.

That gap pushes some workers to look at other states, or at least at other Tennessee cities. If a job offer is taking you out of West Tennessee, Spyder’s Memphis movers can plan the move around your start date, whether you are going across the state or across the country.

Sales tax and property tax

Tennessee has no state income tax on wages, and the Hall tax on interest and dividends was fully repealed for tax years beginning January 1, 2021. The state makes up for it with sales tax. The state rate is 7%, and counties and cities can add up to 2.75% more, so most purchases are taxed at a combined 9.25% to 9.75%. Groceries are taxed at a reduced 4% state rate, plus local tax. The Tax Foundation puts Tennessee’s average combined rate at 9.61%, one of the highest in the country, which hits lower-income households hardest.

Property taxes are set locally. Residential property is assessed at 25% of its appraised value, and the county (and city, if you live inside one) applies its own rate, so bills vary a lot from place to place. Memphis homeowners, for example, pay both a city of Memphis and a Shelby County property tax.

For business owners, rising operating costs can make other states look more predictable. When a company decides to move, hiring experienced commercial movers helps reduce downtime and keeps equipment, records, and inventory organized while the business settles into its new location.

School quality varies by district

Education is one of the main things families think about when deciding where to live. In Tennessee, school quality can vary a lot from one district to another, and even between neighboring suburbs. Some districts post strong results, while others struggle with funding, test scores, and limited programs for students.

Because of this, some parents look at states or districts with stronger public schools. When families decide to relocate, professional packing services can take the packing off your plate and give you more time to research new schools. For the other side of that decision, here is why many parents still see Tennessee as a family-friendly state.

Crime and safety concerns

In some parts of Tennessee, especially certain neighborhoods in the largest cities, residents worry about crime. Conditions are not the same everywhere, but concerns about local crime can change how people feel about where they live, even if they have not experienced a crime themselves. News reports and incidents nearby are often enough to start a family looking at other neighborhoods, other cities, or other states.

If you want to stay in the state, our guide to the safest places to live in Tennessee is a better starting point than leaving altogether.

Healthcare access in rural areas

Access to healthcare is a growing concern, especially in rural Tennessee. The Cecil G. Sheps Center at the University of North Carolina lists 14 rural hospitals in Tennessee that have closed or stopped inpatient care since 2012. In those communities, residents may need to drive long distances for emergency care, specialists, or routine tests.

Coverage is also an issue. Tennessee is one of the states that has not adopted the Affordable Care Act’s Medicaid expansion, and 11.6% of residents under 65 have no health insurance, compared with 9.6% nationally. For older adults and families who need regular care, those gaps can be reason enough to move closer to a major medical center, in Tennessee or elsewhere.

Heat, storms, and tornadoes

Tennessee summers are hot and humid, and spring and fall bring severe thunderstorms, flash flooding, and tornado warnings, especially in West and Middle Tennessee. For some households, the weather is the deciding factor. Retirees and people with health conditions in particular often look for places with milder summers or fewer severe storms.

Traffic and growth around the big cities

Statewide, the average commute of 25.7 minutes is slightly shorter than the national average, but that number hides the growth corridors. Around Nashville, rapid growth has crowded the interstates and main roads into the city, especially at rush hour. Older roads and bridges that need repairs can slow things down further. When people decide the commute is no longer worth it, hiring professional Tennessee movers takes care of the move itself, so you can focus on settling into a new routine.

Fewer cultural options in small towns

Tennessee is known for its music history and strong cultural roots, but outside Nashville, Memphis, Knoxville, and Chattanooga, entertainment options can be limited. Smaller towns may not have many theaters, museums, galleries, or major events. Young professionals in particular may move to larger cities where there is more to do after work and on weekends. When planning that kind of move, experienced long distance movers can help from the first box to the last.

Social and political climate

Politics and social issues also influence where people choose to live. In Tennessee, debates around healthcare, education, and personal freedoms lead some residents to think carefully about where they want to settle long-term. When people feel that state laws or local decisions do not match their views, they may start looking at other states. For others, the same climate is a reason to move to Tennessee. Either way, feeling at home in the social and political environment is part of daily life.

Family ties and retirement plans

Some Tennessee residents simply move to be closer to relatives in other states. Being near family helps with childcare and emergencies and makes it easier to spend time together.

Retirement plans play a similar role. No state income tax makes Tennessee attractive to many retirees, but others prefer places with milder weather, larger senior communities, or a major hospital close by. For people at that stage of life, those priorities can outweigh the tax savings.

Better investment opportunities elsewhere

Real estate investors follow population growth, and in 2025 North Carolina, Texas, and South Carolina all gained more residents from other states than Tennessee did. The Texas economic snapshot from the Governor’s office shows why Texas in particular keeps attracting attention. When more people move into an area, demand for homes and rentals usually rises, and investors look for places where new businesses are opening and infrastructure is improving. As Tennessee’s domestic migration slows, some investors see stronger long-term returns in faster-growing markets.

Why are so many people still moving to Tennessee?

For every household that leaves, more arrive, mostly for the same reasons that made Tennessee popular in the first place:

• No state income tax on wages, which matters most to people coming from high-tax states
• Home values below the national median, even after the run-up since 2020
• Job growth in Middle Tennessee, where Davidson County added more residents than any other county in 2025, followed by Rutherford and Wilson
• Location and lifestyle: a central spot in the eastern U.S., four seasons, lakes, mountains, and two major music cities

In 2025, 81 of Tennessee’s 95 counties gained population. Our breakdown of the pros and cons of living in Tennessee and our guide to the best places to live in Tennessee can help you compare cities if you would rather move within the state.

Should you leave Tennessee or move within the state?

Before you decide, compare the move on your own numbers, not on headlines:

• After-tax income: a raise in a state with an income tax can disappear quickly, so compare take-home pay, not salary.
• Housing: compare median home values and rents for the specific cities you are considering.
• Healthcare: check how far the nearest hospital and specialists are from each address.
• Schools: look up results for the exact district, not just the state.
• Alternatives in Tennessee: a move from Shelby County to a growing Middle Tennessee county may solve the problem without leaving the state.

If you are comparing destinations, our look at Tennessee vs. Texas is a good example of how the trade-offs stack up. For moves out of state, Spyder handles interstate moving with its own crews and trucks, and short-term storage helps if your new home is not ready yet.

Whether you are one of the people leaving Tennessee in 2026 or moving to a new city inside the state, Spyder Moving and Storage can plan the move from start to finish. Request a free estimate or call our Memphis office at 901-329-9064 to get started.