Cost of Living: Knoxville vs Tempe (2026)
Knoxville has a 16% lower overall cost of living than Tempe as of Q1 2026. A one-bedroom apartment runs $1,300/mo in Knoxville vs $1,600/mo in Tempe — a 19% difference. Knoxville has no state income tax, giving residents more take-home pay than those in Tempe (2.5% rate).
- Knoxville is 16% cheaper overall (COL index: 87 vs 103)
- 1BR rent: $1,300/mo in Knoxville vs $1,600/mo — 19% savings
- Knoxville has 0% state income tax — saves ~$3,300+/yr at a $75K salary
- Higher median household income: Tempe ($68,000/yr vs $53,000/yr)
- Median home price: $290,000 in Knoxville vs $430,000 — 33% difference
| Category | Knoxville Tennessee | Tempe Arizona |
|---|---|---|
| 🏠 HousingQ1 2026 | ||
| Studio rent/mo | $1,050Best | $1,250 |
| 1BR rent/mo | $1,300Best | $1,600 |
| 2BR rent/mo | $1,700Best | $2,100 |
| Median home price | $290KBest | $430K |
| 🛒 Food & GroceriesQ1 2026 | ||
| Groceries index (100 = US avg) | 95Best | 100 |
| Budget meal (1 person) | $12Best | $14 |
| Mid-range dinner (2) | $50Best | $58 |
| 🚌 TransportationQ1 2026 | ||
| Monthly transit pass/mo | $45Best | $55 |
| Gas price/gal | $3.05Best | $3.20 |
| Car insurance/mo | $148Best | $158 |
| ⚡ UtilitiesQ1 2026 | ||
| Monthly utilities bundle/mo | $168Best | $210 |
| Internet/mo | $60Best | $62 |
| 💰 Income & TaxesQ1 2026 | ||
| Median household income/yr | $53K | $68KBest |
| State income tax% | 0.0%Best | 2.5% |
| Sales tax (combined)% | 9.5% | 8.6%Best |
| 🎬 LeisureQ1 2026 | ||
| Movie ticket | $14.00Best | $15.00 |
| Gym membership/mo | $35Best | $40 |
| Beer at restaurant | $5.50Best | $6.50 |
| 📊 OverviewQ1 2026 | ||
| Overall COL index (100 = US avg) | 87Best | 103 |
| Walk score / 100 | 26 | 46Best |
Frequently asked questions
Is Knoxville cheaper than Tempe?
Yes. Knoxville is 16% cheaper than Tempe based on overall cost of living indices (87 vs 103, where 100 = US average).
What is the average rent in Knoxville vs Tempe?
As of Q1 2026, the median 1-bedroom rent in Knoxville is $1,300/month and in Tempe is $1,600/month. Knoxville is cheaper by 19%.
How much do I need to earn in Tempe to match a $75,000 salary in Knoxville?
To maintain a similar lifestyle, you would need approximately $88,793/year in Tempe to match a $75,000 salary in Knoxville. This estimate is based on overall cost of living indices and does not account for individual spending patterns.
Which city has lower taxes — Knoxville or Tempe?
Knoxville has the lower state income tax rate at 0% vs 2.5%. Knoxville has no state income tax at all, which can save thousands of dollars per year depending on your income. Note that sales tax and local taxes also vary — see the full breakdown in the table above.
Is it worth moving from Knoxville to Tempe?
It depends on your priorities. Knoxville offers lower overall costs and tax advantages, but both cities have different job markets, weather, and lifestyle trade-offs. Use the comparison table above to evaluate rent, groceries, transportation, and income potential side by side based on your specific budget.
Data sourced from Zillow, BLS, Numbeo, Tax Foundation, and US Census ACS · Updated Q1 2026 · For general guidance only
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