Atlanta vs Memphis: cost of living compared
Memphis is 28% cheaper than Atlanta overall. Memphis (TN) has no state income tax; GA tops out around 5.49%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Atlanta's overall cost of living is notably higher than the national average, while Memphis offers a significantly more affordable environment. The most substantial difference between the two metros lies in housing expenses, which heavily influence the overall cost comparison. Other categories also contribute to Memphis being a more budget-friendly option, making it a distinct contrast to Atlanta's higher price points across many aspects of daily life.
Housing
Both buying a home and renting an apartment are considerably more expensive in Atlanta compared to Memphis. The median home price in Atlanta is substantially higher, and a one-bedroom rental commands a much greater monthly cost. While specific property taxes and insurance vary, the initial investment and ongoing housing payments represent a major financial divergence between these two Southern cities.
Taxes and everyday costs
Memphis residents benefit from no state income tax, unlike Georgia, where a portion of earnings is collected. Daily expenses like food, healthcare, and utilities are also more affordable in Memphis. Transportation costs are noticeably higher in Atlanta, reflecting its larger, more spread-out nature, which can impact daily commuting and overall spending on getting around.
Lifestyle trade-offs
Atlanta is a larger, more densely populated metropolitan area with a faster pace, offering extensive urban amenities and a humid subtropical climate. Memphis, while also a major city, generally feels less congested, with a slightly slower pace and a similar humid subtropical climate. Both cities experience warm summers and mild winters, but Atlanta's scale means more extensive traffic and longer average commutes.
Bottom line
For households prioritizing affordability, Memphis presents a compelling advantage, primarily driven by its significantly lower housing costs and the absence of state income tax. While Atlanta offers a broader array of urban experiences, the financial commitment for housing and daily expenses is substantially greater. A move between these metros would mean a noticeable shift in a household's budget, with Memphis offering more financial breathing room.
| Measure | Atlanta, GA | Memphis, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 108 | 78 |
| Housing index | 105 | 54 |
| Transportation index | 116 | 88 |
| Food index | 98 | 85 |
| Healthcare index | 102 | 88 |
| Utilities index | 98 | 92 |
| Misc index | 98 | 78 |
| Median home price | $378,000 | $178,000 |
| Median 1-bedroom rent | $1,550/mo | $900/mo |
| Average commute | 33 min | 25 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Memphis home with the True Cost Calculator.