Dallas vs Memphis: cost of living compared

Memphis is 26% cheaper than Dallas overall. Neither TX nor TN has a state income tax.

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

Moving between Dallas and Memphis presents a substantial difference in overall living expenses. Memphis stands out as significantly more affordable across the board, with its cost of living index being noticeably lower than Dallas. This considerable gap is primarily driven by housing costs, which are much higher in Dallas and contribute most to its elevated overall expense compared to the national average.

Housing

Housing in Memphis is considerably more accessible, whether buying or renting, with median home prices and typical one-bedroom rents being substantially lower than in Dallas. While both metros offer a range of housing types, Dallas often features newer, more expansive suburban developments. Property ownership costs beyond the mortgage, such as property taxes, can also be a factor, with Texas generally having higher rates than Tennessee.

Taxes and everyday costs

Both states share the advantage of having no state income tax, which simplifies budgeting. However, daily expenses like transportation, food, healthcare, and utilities are all more affordable in Memphis. This means that routine spending on essentials and miscellaneous items will result in noticeable savings for residents in Memphis compared to their counterparts in Dallas, where these costs are closer to the national average.

Lifestyle trade-offs

Both cities experience hot, humid summers and mild winters, though Dallas is generally more sprawling with a faster pace. Getting around in both metros largely relies on personal vehicles, though Dallas has a more developed public transit system. Memphis offers a more relaxed pace and a closer connection to the Mississippi River. Both regions are susceptible to severe weather, including tornadoes.

Bottom line

For households considering a move, the financial implications are clear: Memphis offers a much more budget-friendly environment across nearly all categories, especially housing. While both metros provide a similar climate and car-dependent lifestyle, the everyday costs, from groceries to transportation, are consistently lower in Memphis. This translates to significant potential savings for residents there compared to Dallas.

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.

More comparisons

• Memphis vs Dallas cost of living
• New York vs Memphis cost of living
• Los Angeles vs Memphis cost of living
• Chicago vs Memphis cost of living
• Houston vs Memphis cost of living
• Washington vs Memphis cost of living
• Miami vs Memphis cost of living