Kansas City vs Memphis: cost of living compared
Memphis is 11% cheaper than Kansas City overall. Memphis (TN) has no state income tax; MO tops out around 4.95%.
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
Overall, the cost of living is noticeably lower in Memphis compared to Kansas City. This difference is primarily driven by housing expenses, which present a much bigger gap between the two metros than other categories. While other costs like food, healthcare, and miscellaneous goods and services also lean towards Memphis being more affordable, housing stands out as the most significant factor in the overall budget comparison.
Housing
Housing costs are considerably more affordable in Memphis, whether you are looking to buy a home or rent an apartment. Median home prices are substantially lower in Memphis, and typical one-bedroom rents also follow this trend. While property taxes and insurance can vary, the initial purchase price and monthly rent represent a significant saving in Memphis, making it a more accessible market for many.
Taxes and everyday costs
Daily expenses also show Memphis as generally more economical. Food, healthcare, and utilities are all somewhat cheaper in Memphis. A major difference impacting everyday finances is the state income tax; Missouri has a state income tax, while Tennessee does not, which can significantly affect take-home pay. Transportation costs, however, are roughly similar between the two cities for typical commutes.
Lifestyle trade-offs
Kansas City experiences four distinct seasons, including colder winters and warmer summers, and is known for its Midwestern character and broad avenues. Memphis has a humid subtropical climate with hot, humid summers and mild winters, and is situated along a major river. Both metros offer diverse cultural amenities and generally rely on personal vehicles for getting around, with similar average commute times, but their overall feel and pace differ.
Bottom line
For those prioritizing a lower cost of living, Memphis generally offers a more budget-friendly environment, largely due to its significantly more affordable housing market and the absence of a state income tax. While Kansas City provides a distinct Midwestern experience, the cumulative savings on housing, everyday goods, and taxes in Memphis could translate into substantial financial benefits for a household considering a move between these two cities.
| Measure | Kansas City, MO | Memphis, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 88 | 78 |
| Housing index | 68 | 54 |
| Transportation index | 89 | 88 |
| Food index | 90 | 85 |
| Healthcare index | 92 | 88 |
| Utilities index | 95 | 92 |
| Misc index | 85 | 78 |
| Median home price | $238,000 | $178,000 |
| Median 1-bedroom rent | $1,050/mo | $900/mo |
| Average commute | 25 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.