Memphis vs Sacramento: cost of living compared
Sacramento is 64% more expensive than Memphis 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
Comparing Memphis and Sacramento reveals a substantial difference in overall cost of living. Memphis stands out as significantly more affordable across the board, with its expenses well below the national average. Sacramento, conversely, presents a considerably higher cost of living, driven primarily by its housing market, which is a major factor in the overall expenditure gap between the two metros. Most other categories also show Sacramento as more expensive.
Housing
Housing costs represent the largest divergence. Both buying a home and renting a one-bedroom apartment are noticeably more expensive in Sacramento. Memphis offers a much lower median home price and more affordable rental options. While specific property taxes and insurance vary, the initial investment in housing is dramatically different, with Sacramento's housing market requiring a much larger financial commitment for both ownership and tenancy.
Taxes and everyday costs
Daily expenses for transportation, food, healthcare, and utilities are all higher in Sacramento. Commute times are roughly similar, though Sacramento's average is slightly longer. A key financial distinction is the presence of state income tax in California, which adds to the overall tax burden for Sacramento residents, while Tennessee does not levy a broad state income tax. This impacts disposable income and everyday spending power.
Lifestyle trade-offs
Beyond costs, the metros offer distinct environments. Memphis, situated in the South, experiences a humid subtropical climate with hot summers and mild winters, and is known for its riverfront character. Sacramento, in California's Central Valley, has a Mediterranean climate with hot, dry summers and mild, wet winters. Sacramento's transportation infrastructure supports a slightly longer average commute, and both cities offer urban amenities with varying degrees of density and pace.
Bottom line
Moving between Memphis and Sacramento signifies a profound shift in household budgeting. Memphis consistently offers a much lower cost of living across nearly all categories, making it a more budget-friendly option. Sacramento, while offering a different regional experience, demands a substantially larger financial outlay, particularly for housing and state income taxes. A household's financial capacity will be a primary determinant in choosing between these two distinct metropolitan areas.
| Measure | Memphis, TN | Sacramento, CA |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 128 |
| Housing index | 54 | 132 |
| Transportation index | 88 | 110 |
| Food index | 85 | 108 |
| Healthcare index | 88 | 108 |
| Utilities index | 92 | 125 |
| Misc index | 78 | 105 |
| Median home price | $178,000 | $498,000 |
| Median 1-bedroom rent | $900/mo | $1,750/mo |
| Average commute | 25 min | 30 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Sacramento home with the True Cost Calculator.