Tennessee Salaries 2025
No income tax with Nashville's explosive growth
Median Household Income
Tennessee Salary Overview 2025
Tennessee has become one of America's hottest states—no income tax, Nashville's explosive growth, and the nation's healthcare management capital. The state's median household income of $60,000 is below the national average, but zero state income tax and moderate costs (90 index) create exceptional value.
Nashville is America's "It City"—healthcare giants (HCA, Community Health), tech growth, music industry, and corporate relocations (Oracle, Amazon operations). Memphis remains logistics capital (FedEx HQ) with healthcare and manufacturing. Chattanooga and Knoxville add regional opportunity.
Tennessee's combination of no income tax, growing economy, and cultural appeal has driven population surge. Housing costs have risen significantly, particularly in Nashville, but remain below coastal metros. For comprehensive salary data, see salary trends 2025.
Salaries by Tennessee Region
Nashville Metro – America's "It City"
Median Household Income: $70,000
Nashville is Tennessee's economic engine with extraordinary growth. HCA Healthcare (Fortune 60) and numerous health systems make it the healthcare management capital. Oracle is building major campus. Amazon, Lyft, and tech companies expand operations. Software engineers $90,000-$145,000, healthcare management $75,000-$150,000, music industry varies wildly.
Housing has risen dramatically ($450,000 median) but remains below Austin, Denver, or coastal metros. Hot neighborhoods command premiums.
Memphis – Logistics Capital
Median Household Income: $52,000
FedEx headquarters makes Memphis the logistics capital. St. Jude Children's Research Hospital adds healthcare prestige. AutoZone HQ and manufacturing. More affordable ($220,000 median) with lower growth trajectory than Nashville.
Knoxville
Median Household Income: $55,000
University of Tennessee and Oak Ridge National Laboratory anchor the region. Growing tech presence. Affordable ($330,000 median) with Smoky Mountains access.
Chattanooga
Median Household Income: $55,000
Municipal gigabit internet attracted tech companies. Volkswagen manufacturing. Outdoor lifestyle with scenic location. Growing but still affordable ($340,000 median).
| Region | Median Income | Median Home | Key Industries |
|---|---|---|---|
| Nashville | $70,000 | $450,000 | Healthcare, Tech, Music |
| Memphis | $52,000 | $220,000 | FedEx, Logistics, Healthcare |
| Knoxville | $55,000 | $330,000 | Education, Oak Ridge |
| Chattanooga | $55,000 | $340,000 | Tech, VW, Outdoor |
Top Paying Industries in Tennessee
Healthcare Management (Nashville)
Nashville is the healthcare management capital of America. HCA Healthcare (largest for-profit hospital operator), Community Health Systems, LifePoint, and dozens of companies are headquartered here. Executives $150,000-$500,000+, management $80,000-$180,000, analysts $60,000-$100,000. Unmatched concentration for healthcare careers.
Technology
Oracle is building major Nashville campus. Amazon, Lyft, and tech companies expanding. Chattanooga's gigabit internet created tech scene. Software engineers $85,000-$150,000, product managers $95,000-$160,000.
Logistics (Memphis)
FedEx headquarters makes Memphis the logistics nerve center. UPS, Amazon, and distribution centers add employment. Logistics managers $60,000-$110,000, analysts $50,000-$80,000, pilots $80,000-$250,000.
Music & Entertainment (Nashville)
Nashville is Music City—country music, but increasingly all genres. Income varies dramatically: session musicians $30,000-$100,000+, label executives $80,000-$300,000+, touring artists from poverty to millions. Related tech (streaming, rights management) growing.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Healthcare Management | $60,000 | $100,000 | $180,000+ |
| Software Engineering | $75,000 | $110,000 | $155,000+ |
| Logistics (FedEx) | $45,000 | $70,000 | $110,000+ |
| Healthcare (Physicians) | $260,000 | $350,000 | $450,000+ |
Tennessee Tax Advantage
Income Tax: 0% – Tennessee has no personal income tax on wages.
| Salary | TN Tax | GA Tax | NC Tax | Annual Savings vs NC |
|---|---|---|---|---|
| $75,000 | $0 | ~$4,100 | $3,375 | $3,375 |
| $100,000 | $0 | ~$5,500 | $4,500 | $4,500 |
| $150,000 | $0 | ~$8,300 | $6,750 | $6,750 |
Sales Tax: 7% state + local = 9.25-9.75% total—among nation's highest. Groceries taxed at reduced rate.
Property Tax: Average 0.66%—among nation's lowest.
Highest Paying Jobs in Tennessee 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians/Surgeons | $300,000 | $450,000+ |
| Healthcare Executives | $180,000 | $350,000+ |
| IT Directors | $145,000 | $195,000+ |
| Software Architects | $140,000 | $185,000+ |
| FedEx Pilots | $200,000 | $350,000+ |
Frequently Asked Questions
Is Nashville still affordable?
Less than before. Rapid growth has pushed housing to $450,000+ median. Still 30-40% below Austin/Denver and half of coastal metros. High earners find excellent value; middle income increasingly squeezed. Suburbs offer better value.
Nashville vs. Austin comparison?
Both "it cities" with no income tax. Nashville has healthcare dominance; Austin has tech. Nashville is smaller, more manageable. Austin's housing is higher. Nashville's music scene is unique. Both excellent for career growth.
How important is healthcare to Nashville?
Dominant. Healthcare management is Nashville's defining industry—more healthcare company HQs than anywhere else. If you want healthcare management career, Nashville is the place. The industry influences real estate, restaurants, and culture.