Chattanooga vs Memphis for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Your move simulator
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Estimated annual swing
−$2,052/yr
Favoring Memphis for this income & household (illustrative).
With the extra $171/mo, you could pay down a $15,000 card balance in ~88 months and still keep ~$21/mo for dining out.
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High-yield savings
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Even $171/mo extra earns meaningfully at 4–5% APY vs near-zero in checking.
Home + auto bundle
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Moving to Memphis resets your insurance profile. Bundling home + auto often saves 15–25%.
Supplemental health
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Health coverage varies by state. Review Medigap plans available in your new zip before moving.
Full retirement cost breakdown
| Metric | Chattanooga Tennessee | Memphis Tennessee | Your impact |
|---|---|---|---|
| 1BR rent / month | $1,250 | $1,100Better | $1,800/yr saves in Memphis |
| Median home price | $275K | $200KBetter | — |
| State income tax | NoneBetter | None | — |
| Sales tax (combined) | 9.5%Better | 9.8% | — |
| Monthly utilities | $165Better | $170 | — |
| Groceries index (US = 100) | 94Better | 94 | — |
| Est. healthcare / month | $430 | $415Better | $180/yr saves in Memphis |
| Walk score (0–100) | 28 / 100 | 31 / 100Better | — |
| Overall COL index (100 = US avg) | 86 | 83Better | — |
Complete the Picture
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Mortgages
See what you can afford in Memphis
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Home & Auto Insurance
Bundle before you move — save 15–25%
New state means new rates. Lock in Memphis homeowners + auto quotes before your move date.
Moving Rewards Card
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Average family spends $6,200 on a move. These cards pay 2–4% back + 0% intro APR on purchases.
Frequently asked questions
Which city is better for retirement — Chattanooga or Memphis?
Based on home prices, taxes on retirement income, walkability, and overall cost of living, Memphis scores better for retirees. Median home prices are $275K in Chattanooga vs $200K in Memphis. Memphis is approximately 3% cheaper overall. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in Chattanooga or Memphis?
Neither Chattanooga nor Memphis has a state income tax, which is excellent for retirees relying on Social Security, pensions, or 401(k) withdrawals. Your retirement income is only subject to federal taxes.
What is the estimated monthly healthcare cost in Chattanooga vs Memphis?
Based on national average retiree healthcare spending (~$500/month) scaled by each city's cost-of-living index, estimated monthly healthcare costs are approximately $430 in Chattanooga and $415 in Memphis. That's a difference of ~$15/month, or ~$180/year. Actual costs vary based on your Medicare plan, supplements, and health needs.
Can I afford to retire in Chattanooga on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in Chattanooga, rent alone would consume approximately 30% of your budget (1BR rent ~$1,250/mo) and healthcare another ~10%. That leaves roughly 60% (~$2,500/mo) for groceries, transportation, and other expenses. This is tight — a studio apartment or lower-cost neighborhood would help.
Which city is more walkable for retirees?
Memphis has a higher walk score (31 vs 28 out of 100). Walkability is increasingly important for retirees who want to reduce car dependence — a score above 70 means most daily errands can be done on foot. Memphis offers more independence without a car, which also reduces transportation costs.
$50K/year in Chattanooga has the same purchasing power as $48K/year in Memphis
Healthcare estimates based on national avg retiree spending (~$500/mo) scaled by COL index · State income tax rates from Tax Foundation · Data: Zillow, BLS, Numbeo · Q1 2026