Cost of Living in Chattanooga, TN-GA

How far does a $70,000 salary go in Chattanooga? Estimated income taxes on that gross salary total approximately $7,241 per year — TN-GA levies no state income tax, so that figure covers federal tax only. Subtract rent for a 2-bedroom apartment ($1,390/month based on HUD Fair Market Rents for the Chattanooga metro area) and the estimated annual take-home is $46,079, or roughly $3,840 per month for everything else: food, transportation, savings, and discretionary spending.

The Chattanooga metro has a cost of living index of 78.3 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 22% below the national average, Chattanooga is a genuinely affordable metro where everyday expenses stretch further than in most cities.

At a $70,000 salary, the estimated 2-bedroom rent in Chattanooga represents approximately 24% of gross income. That falls comfortably below the 30% rent-burden guideline, a healthy position for building savings. TN-GA's zero income tax helps offset the rent burden compared to otherwise similar cities that also levy state income tax.