Los Angeles vs Memphis: cost of living compared

Memphis is 55% cheaper than Los Angeles overall. Memphis (TN) has no state income tax; CA tops out around 9.3%.

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 from Memphis to Los Angeles means a significantly higher overall cost of living. Los Angeles is considerably more expensive across nearly all categories. The most substantial difference is seen in housing costs, which are dramatically higher in Los Angeles. Other expenses like transportation, food, and utilities also contribute to the much greater financial outlay required for daily life in the California metro compared to the Tennessee city.

Housing

Both buying and renting are substantially more expensive in Los Angeles compared to Memphis. The median home price in Los Angeles is dramatically higher, and typical one-bedroom rents show a similar, very large gap. Housing stock in Los Angeles can range from dense urban apartments to sprawling homes, often with higher property taxes and insurance. Memphis generally offers more affordable housing, often with larger lots and lower associated ownership costs.

Taxes and everyday costs

A key difference is state income tax; Tennessee does not have one, while California has a significant top marginal rate. Daily expenses like transportation, food, and healthcare are all noticeably higher in Los Angeles. Utilities, including electricity and water, also cost more in Los Angeles. Commute times are generally longer in Los Angeles, impacting both time and transportation costs, while Memphis offers a shorter average commute.

Lifestyle trade-offs

Los Angeles offers a Mediterranean climate with warm, dry summers and mild, wet winters, contrasting with Memphis's humid subtropical climate featuring hot summers and mild winters. Getting around Los Angeles often involves extensive driving and can include significant traffic, though public transit options exist. Memphis typically has a less dense, more car-dependent character. The pace of life can feel faster in Los Angeles, while Memphis often presents a more relaxed atmosphere.

Bottom line

For households considering a move between these two metros, the financial impact is substantial. A household budget will stretch much further in Memphis, primarily due to dramatically lower housing costs and the absence of state income tax. While Los Angeles offers a different climate and urban experience, it comes with a significantly higher price tag across nearly all categories of expenditure, demanding a much larger income to maintain a similar lifestyle.

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.

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