City pair
Austin vs Nashville: cost of living compared
Neither Texas nor Tennessee taxes wages, so the bigger differences are housing and sales tax. Austin's median home value and rent are higher, and so are its median household income and average wage. Nashville's general sales tax rate is higher. Every number below links to its official source.
Last verified: October 16, 2026. City figures are for the City of Austin and Nashville-Davidson (balance). Wage and unemployment figures cover each metro area.
Side by side
| Measure | Austin, TX | Nashville, TN |
|---|---|---|
| Combined sales tax rate (general) | 8.25% Texas Comptroller city rates | 9.75% TN Dept. of Revenue Notice 24-11 |
| State sales tax | 6.25% Texas Comptroller | 7% TN Dept. of Revenue |
| State income tax on wages | None Texas Constitution Art. 8, Sec. 24-a | None (Hall tax on interest and dividends repealed for 2021 on) TN Dept. of Revenue |
| Median home value (owner-occupied), 2020-2024 | $555,300 Census QuickFacts | $413,600 Census QuickFacts |
| Median monthly owner costs with a mortgage, 2020-2024 | $2,679 Census QuickFacts | $1,898 Census QuickFacts |
| Median gross rent, 2020-2024 | $1,729 Census QuickFacts | $1,586 Census QuickFacts |
| Median household income (2024 dollars), 2020-2024 | $93,658 Census QuickFacts | $77,371 Census QuickFacts |
| Homeownership rate, 2020-2024 | 43.4% Census QuickFacts | 52.4% Census QuickFacts |
| Mean annual wage, all jobs, metro area (May 2025) | $74,580 BLS OEWS | $66,390 BLS OEWS |
| Unemployment rate, metro area (Aug 2026, preliminary, not seasonally adjusted) | 3.9% BLS LAUS | 3.1% BLS LAUS |
What the numbers mean
Taxes
Texas charges 6.25% state sales tax, and Austin adds 1% for the city and 1% for Capital Metro, the transit authority, for 8.25% total. Tennessee charges 7%. Davidson County's local rate is 2.25%, and a 0.5% transit surcharge that voters approved started February 1, 2025, bringing the local rate to 2.75% and the general total to 9.75%. Groceries are taxed at different rates in Tennessee, so they aren't included here.
Texas has no state income tax; its constitution prohibits one. Tennessee has no tax on wages, and its Hall tax on interest and dividends was repealed for tax years starting on or after January 1, 2021.
Texas has no state property tax; local taxing units set property tax rates (Texas Comptroller). Local property tax rates and home and auto insurance costs aren't shown yet because we haven't checked them against an official source.
Housing
Census figures are American Community Survey 5-year estimates (2020-2024). They describe homes people already own and rents they already pay, not current listing prices.
Jobs and pay
BLS wage figures are the mean annual wage across all occupations in the Austin-Round Rock-San Marcos and Nashville-Davidson-Murfreesboro-Franklin metro areas.
Sources
- Texas Comptroller: Sales and use tax
- Texas Comptroller: City sales and use tax rates (Austin, Travis Co: city 1% + Austin MTA 1%, total 8.25%)
- Texas Comptroller: Property tax assistance
- Texas Constitution, Article 8, Sec. 24-a
- Tennessee Department of Revenue: Sales and use tax
- Tennessee Department of Revenue: Notice 24-11, Davidson County transit surcharge (PDF)
- Tennessee Department of Revenue: Hall income tax
- U.S. Census Bureau QuickFacts: Austin city, Texas
- U.S. Census Bureau QuickFacts: Nashville-Davidson metropolitan government (balance), Tennessee
- U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics (series OEUM001242000000000000004, OEUM003498000000000000004)
- U.S. Bureau of Labor Statistics: Local Area Unemployment Statistics (series LAUMT481242000000003, LAUMT473498000000003)
Not financial advice. Rates change; check the source before you decide.