Median rent is 33% lower in Knoxville ($1,116/mo vs $1,655/mo). Buying is cheaper in Knoxville, where the median home runs $214,000 versus $512,700. Households earn more in Austin ($91,461 vs $50,994 a year). Taken together, Knoxville is the more affordable choice with a cost index of 96.1 against 98.8 — about 3% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Austin, TX.
Quick verdict
Knoxville is 3% cheaper overall
Cost index: 96.1 in Knoxville vs 98.8 in Austin (US average = 100)
City A
Austin, TX
City B
Knoxville, TN
How much would you need to earn in Knoxville, TN to maintain your standard of living from Austin, TX?
Equivalent salary in Knoxville, TN
$72,977
You could earn $2,023 less (3% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each city's metro area. A rough estimate of overall purchasing power, not tax or take-home pay.
Metric
Austin
Texas
Knoxville
Tennessee
👥Population
💰Median Household Income
Annual
🏠Median Gross Rent
Per month
🏡Median Home Value
📊Cost of Living Index
US avg = 100
🔑1BR Fair Market Rent
HUD FMR
🔑2BR Fair Market Rent
HUD FMR
🔑3BR Fair Market Rent
HUD FMR
🌬️Air Quality Index
Lower = cleaner
🏛️Top State Income Tax
Top marginal rate
🧾State Sales Tax
Statewide base rate
🎂Median Age
Years
✓ = better value · Sources: US Census ACS, BEA RPP, HUD FMR, EPA AirNow, Tax Foundation
Renters will find significantly cheaper housing in Knoxville — median rent of $1,116/mo versus $1,655/mo in Austin, a 33% difference. Home buyers face a steeper market in Austin: the median home is $512,700 versus $214,000 in Knoxville — 58% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Both Texas and Tennessee have no state income tax — a notable advantage for workers in both cities. Sales tax is 6.25% in Texas and 7.00% in Tennessee; Austin has the lower rate (local add-ons may apply in both).
Austin
Income tax: None
Sales tax: 6.25%
Knoxville
Income tax: None
Sales tax: 7.00%
Austin has cleaner air on average: 47.0 AQI (Good) compared to 59.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Austin if you prioritize higher median household income ($91,461/yr).
Pick Knoxville if you prioritize cheaper rent ($1,116/mo median).
Pick Austin if you prioritize cleaner air quality (avg AQI 47.0).
Is Austin cheaper than Knoxville?
Knoxville is cheaper overall, with a cost of living index of 96.1 versus 98.8 (US average = 100). That means prices run about 3% lower in Knoxville.
How much is rent in Austin vs Knoxville?
Median rent is $1,655/mo in Austin, TX and $1,116/mo in Knoxville, TN. Knoxville, TN has the lower rent by about 33%.
Which has higher salaries — Austin or Knoxville?
Median household income is $91,461 in Austin, TX and $50,994 in Knoxville, TN. Austin, TX has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Austin, TX has better air quality on average: 47.0 AQI versus 59.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Austin or Knoxville?
Both Texas and Tennessee have no state income tax.
What salary do I need in Knoxville to match my Austin income?
To maintain the same purchasing power, a salary of $100,000 in Austin, TX is equivalent to roughly $97,303 in Knoxville, TN (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2024 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology