Memphis vs Chattanooga 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
New state — compare rates before you sign
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 | Memphis Tennessee | Chattanooga Tennessee | Your impact |
|---|---|---|---|
| 1BR rent / month | $1,100Better | $1,250 | $1,800/yr saves in Memphis |
| Median home price | $200KBetter | $275K | — |
| State income tax | NoneBetter | None | — |
| Sales tax (combined) | 9.8% | 9.5%Better | — |
| Monthly utilities | $170 | $165Better | — |
| Groceries index (US = 100) | 94Better | 94 | — |
| Est. healthcare / month | $415Better | $430 | $180/yr saves in Memphis |
| Walk score (0–100) | 31 / 100Better | 28 / 100 | — |
| Overall COL index (100 = US avg) | 83Better | 86 | — |
Complete the Picture
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Mortgages
See what you can afford in Chattanooga
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Home & Auto Insurance
Bundle before you move — save 15–25%
New state means new rates. Lock in Chattanooga 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 — Memphis or Chattanooga?
Based on home prices, taxes on retirement income, walkability, and overall cost of living, Memphis scores better for retirees. Median home prices are $200K in Memphis vs $275K in Chattanooga. Memphis is approximately 3% cheaper overall. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in Memphis or Chattanooga?
Neither Memphis nor Chattanooga 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 Memphis vs Chattanooga?
Based on national average retiree healthcare spending (~$500/month) scaled by each city's cost-of-living index, estimated monthly healthcare costs are approximately $415 in Memphis and $430 in Chattanooga. 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 Memphis on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in Memphis, rent alone would consume approximately 26% of your budget (1BR rent ~$1,100/mo) and healthcare another ~10%. That leaves roughly 64% (~$2,667/mo) for groceries, transportation, and other expenses. This is generally considered manageable.
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 Memphis has the same purchasing power as $52K/year in Chattanooga
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