Memphis vs New York: cost of living compared

New York is 140% more expensive than Memphis overall. Memphis (TN) has no state income tax; NY tops out around 6.5%.

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

Moving between Memphis and New York represents a substantial shift in living expenses. New York's overall cost of living is dramatically higher than Memphis's, driven primarily by housing costs. While nearly every spending category is more expensive in New York, the difference in housing creates the most significant gap. Memphis offers a much more affordable environment across the board, making it a stark contrast to the high expenses found in New York.

Housing

Housing costs present a massive disparity between these two metros. Both median home prices and typical one-bedroom rents are vastly higher in New York. Memphis offers a housing market where homeownership is considerably more attainable, with a greater prevalence of single-family homes. In New York, multi-unit dwellings are common, and the associated property taxes and insurance, while not detailed, contribute to a much higher total cost of housing.

Taxes and everyday costs

Daily expenses are consistently lower in Memphis. Transportation costs are noticeably less, and residents can expect to pay less for groceries, healthcare, and utilities compared to New York. A significant financial difference is the absence of state income tax in Tennessee, which contrasts with New York's state income tax, meaning a larger portion of earnings is retained in Memphis, further impacting daily spending power.

Lifestyle trade-offs

Beyond costs, lifestyle differences are pronounced. Memphis, located in the South, experiences a humid subtropical climate with warm summers. Commute times are generally shorter, and the city offers a more relaxed pace. New York, a major global hub, has a denser, faster-paced urban environment with extensive public transit options and a longer average commute. Its climate features distinct seasons, including colder winters.

Bottom line

A move from Memphis to New York would necessitate a substantially larger budget for nearly all expenses, especially housing, which is a primary driver of the overall cost difference. Conversely, relocating to Memphis would free up significant financial resources due to its much lower cost of living across all categories, including the absence of state income tax. This makes Memphis a far more budget-friendly option for households.

Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific New York home with the True Cost Calculator.

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