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Georgia vs Tennessee

Tennessee is 4.423 points cheaper than Georgia (91.870 vs 96.293), with the biggest difference in utilities (20.677 points) rather than rent, and Tennessee does not tax wages.

Updated

Measure Georgia Tennessee First − second
All-items price level 96.293 91.870 +4.423 points
Rent price level 88.694 79.070 +9.624 points
Home value $303,300±$1,171 $286,700±$1,492 +$16,600
Two-bedroom gross rent $1,326±$11 $1,143±$10 +$183
Household income $77,353±$407 $69,595±$429 +$7,758
Real estate taxes paid $2,341±$12 $1,442±$8 +$899

$4,000 of monthly spending in Georgia scales to $3,816 in Tennessee at the 2024 all-items price ratio.

BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap

Georgia vs Tennessee: power bills and paychecks

Utilities are the surprise. Tennessee's utilities parity is 72.137, the third-lowest in the country, against Georgia's 92.814. Rents differ by 9.624 points (88.694 against 79.070), goods by 2.682 and other services by 2.201. On rent alone, Tennessee saves $183 a month at the median.

The paycheck difference is structural. Georgia's flat 4.99% income tax for 2026 supplied 47.3% of its state collections, $1,436 per resident; Tennessee does not tax wages, and its state government relies on general sales for 57.5% of collections, $2,010 per resident. Tennessee's 7% state sales rate plus a local rate compares with Georgia's 4% statewide rate plus county taxes. Total state collections were $3,040 per resident in Georgia and $3,496 in Tennessee: the two raise comparable sums in very different ways.

Owners pay noticeably less in Tennessee: a median real estate tax of $1,442 against $2,341, on median home values of $286,700 and $303,300. Owners with a mortgage report median monthly costs of $1,566 and $1,783.

Incomes run the other way. Georgia's median household income is $77,353, $7,758 above Tennessee's $69,595, but real per capita personal income, adjusted for prices, is higher in Tennessee: $58,582 (rank 25) against $52,952 (rank 42). Lower prices outweigh the lower nominal income for the average Tennessee resident.

An Atlanta-area move and a Nashville-area move should still be priced by actual addresses and the two actual job offers.

Price levels by category

MeasureGeorgiaTennesseeGap
All items96.29391.870+4.423
Goods98.92996.247+2.682
Housing (rents)88.69479.070+9.624
Utilities92.81472.137+20.677
Other services97.34395.142+2.201
Real income per person (2017 $)$52,952$58,582−$5,630

How BEA builds category parities and real income

Two state tax mixes, FY2025

Georgia: $34.36 billion, $3,040 per resident. Tennessee: $25.57 billion, $3,496 per resident.

TaxGA shareTN shareGA per residentTN per resident
Individual income47.3%0.0%$1,436$0
General sales27.2%57.5%$826$2,010
Property2.6%not levied$78—
Motor fuel6.5%5.0%$197$176
Other selective sales4.6%16.8%$139$589
Corporate income9.5%10.1%$288$354
Licenses1.9%8.9%$57$311
Severancenot levied0.0%—$0
Other taxes0.6%1.6%$19$57

What these collections do and do not show

Taxes on wages and purchases

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