Two no-income-tax states with different scale: Texas wins on job-market breadth; Tennessee wins for many movers on milder geography and lower property-tax pressure.
Texas is the cleaner answer for affordability; Tennessee has the stronger state-level momentum signal.
- Texas is the lower-cost buying market in this comparison.
- Texas is the lower-cost rental market.
- Tennessee has the stronger current market-momentum signal.
- Tennessee median homes are about 18% higher than the other side in the cities we track.
- Tennessee median rents are about 5% higher.
Texas TX
Tennessee TN
Texas vs Tennessee cost and tax comparison
| Metric | Texas | Tennessee |
|---|---|---|
| Median home value | $313,683 | $371,202 |
| Median rent | $1,596/mo | $1,674/mo |
| Est. property tax on median home | $5,458/yr | $2,042/yr |
| Effective property tax rate | 1.74% | 0.55% |
| Top income tax rate | 0% | 0% |
| State sales tax | 6.25% | 7.00% |
| 1-year home value change | -2.0% | -0.0% |
| Population CAGR 2020-2024 | +1.3%/yr | +1.6%/yr |
| Median market momentum | 57 / 100 | 69 / 100 |
| Price-to-rent ratio | 16.4 | 18.5 |
| Cities tracked | 131 | 29 |
Green highlights the stronger side for that row: lower for costs/taxes, higher for growth/momentum/coverage.
Which state fits which move?
How to read the tradeoff
Texas and Tennessee are not just tax and cost alternatives. The more useful question is what you are buying: cheaper monthly carrying cost, stronger job-market access, a specific metro, or a retirement/tax setup that works long term.
On the housing side, Texas has the lower median tracked home value and Texas has the lower median tracked rent. On taxes, Texas has a 1.74% effective property-tax rate and Tennessee has a 0.55% rate; the annual bill also depends on the home price you choose.
The state-level answer should narrow the search, not end it. Use the city shortlists below to compare actual places inside Texas and Tennessee.
Best cities to compare next
High-momentum Texas cities
High-momentum Tennessee cities
More affordable Texas picks
More affordable Tennessee picks
Texas vs Tennessee FAQ
Is Texas or Tennessee cheaper?
Texas is cheaper for buyers in the tracked-city median, and Texas is cheaper for renters. Housing is the biggest difference on this page, so start there before comparing lifestyle or taxes.
Which has lower property taxes, Texas or Tennessee?
Tennessee has the lower statewide effective property-tax rate in this comparison: Texas is 1.74% and Tennessee is 0.55%. Actual bills vary by county and municipality.
Which is better for renters, Texas or Tennessee?
Texas has the lower median tracked rent. If you are testing a move before buying, compare the specific cities below because state averages can hide big metro differences.
Which state has stronger housing momentum?
Tennessee has the stronger median market-momentum signal on this page. Momentum combines recent home-value direction, rent direction, population growth, and distance from peak.
What should I compare after the state-level numbers?
Pick two or three cities in each state and compare home value, rent, property tax, commute, and lifestyle. State averages are useful for screening, but the final moving decision is city-specific.
Related tools and guides
Estimate annual tax by home price and state.Compare cities side by side
Use the city shortlists above for the real final decision.Texas tax guide
No state income tax. But property tax effective ~1.74% — among the highest. Sales 6.25% base (local pushes to 8.25%).Tennessee tax guide
No state income tax (eliminated Hall tax). High sales tax (7% base, 9.55% avg with local). Low property. SS + retirement untaxed.Is Texas a good place to live?
State-level pros, cons, and moving context.Is Tennessee a good place to live?
State-level pros, cons, and moving context.
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