State Comparison

Tennessee vs Virginia

Side-by-side comparison of 16 financial metrics including taxes, housing costs, cost of living, wages, and insurance — powered by verified government data.

Overall Score

7
Tennessee
TN
vs
of 16 metrics
9
Virginia
VA

Cost of Living

Cost of Living Index
TN: 89.7
VA: 103.7
TN

Housing

Median Home Price
TN: $310,000
VA: $380,000
TN
Median 2BR Rent
TN: $1,060/mo
VA: $1,425/mo
TN
Closing Costs
TN: 2.60%
VA: 2.70%
TN
Transfer Tax Rate
TN: 0.37%
VA: 0.25%
VA

Taxes

Property Tax Rate
TN: 0.71%
VA: 0.82%
TN
Top Income Tax Rate
TN: None
VA: 5.75%
TN
Sales Tax Rate
TN: 7.00%
VA: 5.30%
VA
Capital Gains Tax Rate
TN: None
VA: 5.75%
TN

Income & Employment

Median Household Income
TN: $56,071
VA: $80,615
VA
Minimum Wage
TN: $7.25/hr
VA: $12.00/hr
VA
Max Unemployment Benefit
TN: $275/wk
VA: $378/wk
VA

Business

LLC Filing Fee
TN: $300
VA: $100
VA
LLC Annual Fee
TN: $300
VA: $50
VA

Insurance & Living

Avg Car Insurance
TN: $1,640/yr
VA: $1,430/yr
VA
Avg Home Insurance
TN: $2,240/yr
VA: $1,550/yr
VA

Key Takeaways

  • 1

    Virginia leads in 9 of 16 financial metrics, making it the more favorable state overall.

  • 2

    Housing: Median home prices are $310,000 in Tennessee vs $380,000 in Virginia — a $70,000 difference.

  • 3

    Taxes: Tennessee has no income tax while Virginia has a 5.75% top rate. Property tax rates are 0.71% vs 0.82%.

  • 4

    Cost of Living: Tennessee's index is 89.7 and Virginia's is 103.7 (national average = 100).

Frequently Asked Questions

Is Tennessee or Virginia more affordable?

Tennessee has a lower cost of living index (89.7) compared to Virginia (103.7), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.

Which state has lower taxes — Tennessee or Virginia?

Overall, Tennessee has a lower combined tax burden. Tennessee has no income tax, 7% sales tax, and 0.71% property tax. Virginia has a 5.75% top income tax, 5.3% sales tax, and 0.82% property tax.

What are housing costs in Tennessee vs Virginia?

The median home price in Tennessee is $310,000 compared to $380,000 in Virginia. For renters, a 2-bedroom apartment averages $1,060/month in Tennessee vs $1,425/month in Virginia.

Which state is better for starting a business — Tennessee or Virginia?

LLC filing costs are $300 in Tennessee vs $100 in Virginia, with annual fees of $300 and $50 respectively. Tennessee's lack of income tax compared to Virginia's 5.75% rate may also factor into your decision.

Should I move from Tennessee to Virginia?

It depends on your priorities. Virginia wins in 9 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.

Comparing Tennessee and Virginia

When deciding between living in Tennessee or Virginia, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators sourced from the U.S. Census Bureau, Tax Foundation, HUD Fair Market Rent data, and Bureau of Labor Statistics to give you a comprehensive overview.

Tennessee (TN) has a median household income of $56,071 with a cost of living index of 89.7. Virginia (VA) has a median household income of $80,615 with a cost of living index of 103.7.

These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free Tennessee calculator or Virginia calculator to model your specific financial scenario.

Data sources: Census Bureau ACS, Tax Foundation, HUD FMR, BLS. Last verified January 2026. Calculators provide estimates only — consult a qualified professional for financial advice.