Louisville vs Memphis: cost of living compared
Memphis is 5% cheaper than Louisville overall. Memphis (TN) has no state income tax; KY tops out around 4.5%.
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
Memphis generally offers a lower overall cost of living compared to Louisville. This difference is primarily driven by significantly more affordable housing in Memphis. While some other categories like utilities are roughly similar, and healthcare costs are comparable, the housing expense creates the most substantial gap between the two metros, making Memphis a more budget-friendly option for many households.
Housing
Housing costs are noticeably lower in Memphis for both buying and renting. Median home prices are considerably less, and typical one-bedroom rents also show a clear advantage for Memphis. Both cities feature a mix of housing styles, from historic properties to newer constructions. Property taxes and insurance costs can vary, but the initial purchase price and monthly rent are more favorable in Memphis.
Taxes and everyday costs
Daily expenses show some variation. Memphis benefits from not having a state income tax, which can lead to more take-home pay compared to Louisville's state income tax. Food costs are slightly less in Memphis, while transportation expenses are a bit higher there. Healthcare and utility costs are quite similar between the two metros, meaning day-to-day spending on essentials outside of housing and income tax is broadly comparable.
Lifestyle trade-offs
Both cities offer a humid subtropical climate with warm summers and mild winters, though Memphis can experience slightly more extreme heat. Getting around by car is common in both, with similar average commute times. Each city has a distinct cultural identity, with Louisville known for its riverfront and Memphis for its musical heritage. Both are major regional centers with a range of amenities and activities.
Bottom line
For those prioritizing a lower cost of living, Memphis presents a compelling advantage, largely due to its significantly more affordable housing market and the absence of a state income tax. While some other daily expenses are similar or slightly higher, the savings on housing and income tax in Memphis could lead to a more favorable household budget compared to Louisville, making it an attractive option for many movers.
| Measure | Louisville, KY | Memphis, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 82 | 78 |
| Housing index | 63 | 54 |
| Transportation index | 85 | 88 |
| Food index | 88 | 85 |
| Healthcare index | 88 | 88 |
| Utilities index | 92 | 92 |
| Misc index | 80 | 78 |
| Median home price | $218,000 | $178,000 |
| Median 1-bedroom rent | $975/mo | $900/mo |
| Average commute | 24 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.