Cost of Living: California vs Tennessee 2025

Thinking about moving from California to Tennessee? You’re not alone. Every year, thousands of families trade the West Coast lifestyle for Tennessee’s affordability, community, and opportunity. One of the biggest reasons? The cost of living.

Let’s break down how California and Tennessee stack up in 2025.

🏡 Housing Costs

Housing is the biggest driver of the cost-of-living gap.

• California: Median home price in early 2025 is hovering around $785,000 (with much higher prices in coastal metros like LA, San Diego, and the Bay Area).

• Tennessee: The statewide median sits closer to $385,000–$410,000. In Middle Tennessee, popular areas like Franklin and Mount Juliet are higher but still far below California standards.

👉 Translation: The same budget that buys a modest California home can often buy a spacious property (sometimes with land) in Tennessee.

💰 Taxes

• California: State income tax ranges from 1% to 13.3%, the highest in the nation. Sales tax averages around 7.25%–10.25% depending on county.

• Tennessee: No state income tax on wages. Sales tax averages 7% statewide + local rate (around 9.25% in most areas). Property taxes are higher than California, but overall the savings from no state income tax are significant.

👉 Many Californians find themselves saving thousands annually after relocating.

🛒 Everyday Expenses

• Groceries: Roughly 15–20% lower in Tennessee.

• Gas: Californians often pay $1.00–$1.50 more per gallon than Tennesseans.

• Utilities: Tennessee homes may have slightly higher utility bills due to seasonal heating/cooling, but overall costs still come in below California averages.

  
  

🚗 Transportation

• California: Gas prices and car insurance are among the highest in the country. Commutes can also eat away at both time and money.

• Tennessee: Gas and insurance are lower, and while Nashville traffic can get busy, it’s nowhere near LA freeway gridlock.

  
  

🏥 Healthcare

Healthcare costs are fairly comparable, with Tennessee sometimes running slightly lower. Availability of major healthcare systems in Nashville, Memphis, and Knoxville helps keep quality care accessible.

🌦️ Quality of Life Trade-Offs

While cost savings are clear, it’s worth noting lifestyle differences:

• Weather: California’s dry, sunny climate vs. Tennessee’s four full seasons (with hot, humid summers).

• Community: Tennessee is known for hospitality and community-oriented living.

• Space: More home and land for the money.

  
  

📊 Quick Snapshot: California vs Tennessee (2025)

Category	California	Tennessee	Winner
Housing (median)	$785,000	$395,000	TN
State Income Tax	Up to 13.3%	0%	TN
Gas (avg/gal)	$5.00+	$3.50–$3.70	TN
Groceries	High	15–20% lower	TN
Property Taxes	Lower	Higher	CA (slight edge)
Utilities	Moderate	Slightly higher	Tie

✅ Final Thoughts

The numbers make it clear: Tennessee offers a far lower cost of living compared to California. For many families, the move means more financial freedom, more space, and a lifestyle that balances affordability with community charm.

If you’re considering making the move, you’ll want a realtor who understands both sides of the equation. That’s where we come in.

📲 Thinking of relocating? At The Harper Home Company, we specialize in helping Californians transition smoothly into Tennessee life. From virtual consultations to guided relocation tours, we’ll help you find the right home in the right community.