The Pros and Cons of Living in Tennessee

Tennessee is home to about 7.3 million people, with two large metros at opposite ends of the state, Nashville and Memphis, and the Great Smoky Mountains on its eastern border. Most people who move here come for the low taxes and lower cost of living, and most complaints are about humid summers, sales tax, traffic and limited public transit. Our crews at Spyder Moving and Storage TN move families in and out of the state from our Memphis office, and this guide, updated for 2026, weighs the real advantages against the drawbacks.

What are the pros and cons of living in Tennessee?

The short answer: Tennessee is a good fit if you want to keep more of your paycheck and you don’t mind driving everywhere or a hot, sticky July. The table below sums up the main trade-offs, with each point explained further down.

Is Tennessee an affordable place to live?

Yes, for most people moving from the Northeast, the Midwest or the West Coast. The Missouri Economic Research and Information Center (MERIC) puts Tennessee’s cost of living index at 89.7 for the second quarter of 2026, about 10% below the national average and 10th lowest among the states. Housing is the biggest saving at an index of 80.0, while groceries (96.3) and transportation (93.0) are only slightly below average. For comparison, California sits at 140.3 and New York at 132.6 on the same index. That is why so many buyers who look at moving to Tennessee find they can afford more house here than back home.

Keep in mind that the state average hides big local differences. Williamson County south of Nashville is far pricier than West Tennessee towns, while the Memphis suburbs and small towns tend to stay closer to the state’s low average. Our Mississippi vs Tennessee cost of living comparison shows how the state stacks up against its southern neighbor, and the full Tennessee movers and locations page lists the cities Spyder serves.

Taxes in Tennessee: what you pay and what you don’t

Taxes are the main reason people choose the Volunteer State, but the savings come with a catch at the checkout counter:

• No tax on wages. Tennessee does not tax wages or salaries, and a 2014 constitutional amendment bars the legislature from adding a payroll or earned-income tax.
• No tax on investment income. The old Hall income tax on interest and dividends was repealed for tax years starting January 1, 2021.
• High sales tax. The state rate is 7% on most goods and 4% on food, plus a local rate of up to 2.75%. In Davidson County, voters added a half-cent transit surcharge in 2024, so most purchases in Nashville now carry 9.75%.
• Low property tax. The Tax Foundation puts Tennessee’s effective property tax rate at 0.52% of home value, well below the national norm, although rates in Shelby County and the City of Memphis are higher than in most counties.

For families moving from Michigan, Illinois or Ohio, the switch from an income tax to a sales tax state usually means more take-home pay, and our guide for moving from Michigan to Tennessee walks through what that switch looks like in practice.

Jobs and the Tennessee economy

Tennessee’s labor market has stayed tight. The state Department of Labor and Workforce Development reported an unemployment rate of 3.4% in August 2026, below the 4.1% national rate. Health care, logistics, manufacturing and music are the big sectors: FedEx is headquartered in Memphis, Nissan builds cars in Smyrna, Asurion is based in Nashville, and hospital systems such as Vanderbilt University Medical Center and St. Jude Children’s Research Hospital are among the largest employers in their regions. If a job offer is what’s pulling you here, our guide on moving to Tennessee for work helps you weigh salary against local costs.

What is daily life like in Tennessee?

Daily life here revolves around music, food and the outdoors. Nashville has the Grand Ole Opry, the Ryman Auditorium and CMA Fest every June, while Memphis has Beale Street, Graceland and Sun Studio, where Elvis Presley and Johnny Cash cut their early records. Barbecue in Memphis and hot chicken in Nashville are local institutions, and every town has its own fall festival or Friday night football crowd. If you’re settling in the Memphis area, Spyder’s Memphis movers handle both local and long-distance moves from our New Getwell Road office.

• Schools and college: Public schools are run by local districts, and quality varies a lot from one district to the next. Graduating seniors can use Tennessee Promise, a last-dollar scholarship that covers tuition and mandatory fees at the state’s community colleges and colleges of applied technology. Our school enrollment tips for families new to Tennessee cover documents and deadlines.
• Music: Memphis and Nashville shaped blues, rock and roll, soul and country, and live music is easy to find any night of the week.
• History: Tennessee has Andrew Jackson’s Hermitage near Nashville, Andrew Johnson’s home in Greeneville, the National Civil Rights Museum at the Lorraine Motel in Memphis and many Civil War sites. The state’s nickname, the Volunteer State, dates back to the War of 1812 and the Mexican-American War, when thousands of Tennesseans signed up to fight.

How good is the outdoor life in Tennessee?

If you love the outdoors, this is one of the strongest pros. Great Smoky Mountains National Park straddles the Tennessee–North Carolina line and is free to enter, although a parking tag is required for stops longer than 15 minutes. Its highest peak, Kuwohi (named Clingmans Dome until 2024), is the highest point in the park, and fall color season draws some of the biggest crowds of the year. Closer to the middle of the state you’ll find lakes on the Tennessee and Cumberland rivers, a long list of state parks and caves such as the Lost Sea near Sweetwater.

For a family in West Tennessee, weekends often mean Shelby Farms Park in Memphis or a drive to a state park. Before you pick a town, check what’s close by: a 20-minute drive to a lake or trailhead makes a big difference to how much you’ll actually get outside. The official Great Smoky Mountains park site lists current road closures, parking tag rules and visitor center hours.

What are the downsides of moving to Tennessee?

No state is perfect, and these are the cons people mention most often before and after they move here:

• Heat and humidity: Summer highs in the 90s are common in Memphis and Nashville, and the humidity makes it feel hotter. Winters are mostly mild, but ice storms can shut roads for a day or two.
• Severe weather: Tennessee sits in a region where tornadoes are common, especially in spring, so a safe room or interior shelter plan matters.
• Traffic and transit: Nashville’s growth has outpaced its roads. Davidson County voters approved the “Choose How You Move” plan in 2024 to expand WeGo bus service, sidewalks and signals, but for now most residents still drive, and the same is true in Memphis.
• Sales tax: With no income tax, everyday spending is taxed harder, so households that spend most of what they earn save less than they expect.
• Crime in some neighborhoods: Parts of Memphis and Nashville have high violent crime rates, while many suburbs are much quieter. Look up neighborhood-level data and visit at different times of day before you sign.

Some people decide the trade-offs aren’t for them. Our article on the reasons people are leaving Tennessee covers the most common ones, and if you’re weighing a bigger metro outside the state, this guide to relocating from Memphis to Atlanta walks through that route.

Living in Memphis: pros and cons

Memphis is the most affordable big city in the state, with a strong logistics job market around FedEx and the airport, world-class children’s care at St. Jude and Le Bonheur, and deep music and food culture. The downsides are crime in parts of the city, higher property tax rates than most of Tennessee and heavy reliance on cars. Many families split the difference by living in suburbs such as Germantown, Collierville, Bartlett or Lakeland, which run their own school districts and still keep downtown Memphis within a short drive.

How to plan your move to Tennessee

Once you’ve decided, a little planning saves a lot of stress. Start with a written list of everything that has to happen, from school records and utility transfers to registering your car, and put dates next to each item.

1. Get estimates early. Book a moving date six to eight weeks ahead, and even earlier for May through August, when demand peaks. A free moving estimate helps you set a realistic budget.
2. Decide what help you need. If you hire Memphis movers and packers, ask for packing, storage or heavy item handling at the same time so everything is on one quote.
3. Pick the town before the house. If you’re looking east of Memphis, our Lakeland TN movers know the area well; for other cities, check the Tennessee locations we serve.
4. Plan for summer heat on moving day. Schedule loading for the morning and keep electronics, medicine and pets in an air-conditioned car.

Is Tennessee the right state for you?

If you value low taxes on income, lower housing costs, music and the mountains, and you can live with humid summers, a high sales tax and a car-first lifestyle, living in Tennessee is a strong choice. Visit the town you’re considering in summer, check the school district and drive the commute at rush hour before you commit.

When you’re ready, Spyder Moving and Storage can handle your move to Tennessee from start to finish, with our own crews and trucks working out of the Memphis office at 3290 New Getwell Rd (901-329-9064). Contact our team or request a free estimate to get started.