Nashville, TN (WOKI / WVLT) – A new study suggests a single adult in Tennessee must earn nearly $90,000 annually before taxes to live comfortably in 2026.
According to research released by financial technology company SmartAsset, the estimated salary needed to maintain a comfortable lifestyle in Tennessee is $89,898 per year, ranking the Volunteer State 37th among all states in the amount of income required.
The study used living wage data and applied the widely used 50/30/20 budgeting rule, which recommends spending:
- 50% of income on necessities such as housing, food, transportation and utilities
- 30% on discretionary expenses and entertainment
- 20% on savings, retirement and emergency funds
Tennessee Among Few States Seeing a Decline
While the cost of living continues to challenge households across much of the country, Tennessee was one of only six states where the estimated income needed to live comfortably actually declined compared to 2025.
According to the study, Tennessee recorded a 1.7% decrease, the largest reduction among all states included in the report.
Despite that decline, nearly $90,000 remains well above the earnings of many Tennessee residents, highlighting the ongoing gap between wages and the income level financial experts consider necessary for long-term financial stability.
How Tennessee Compares
SmartAsset’s analysis places Tennessee in the lower half of states for income required to achieve a comfortable lifestyle.
The report reflects Tennessee’s generally lower housing and living expenses compared to many states in the Northeast and on the West Coast, where required incomes often exceed six figures.
However, economists note that affordability can vary significantly depending on location, with residents in rapidly growing metropolitan areas such as Nashville, Knoxville and Chattanooga often facing higher housing and transportation costs than those in rural communities.
What It Means for Middle-Class Families
The findings come months after another SmartAsset study examined what qualifies as middle class in Tennessee.
That report estimated a middle-class household income range between $47,998 and $143,994. The study also found Tennessee’s median household income is approximately $71,997.
The latest report suggests that earning a “comfortable” income often requires making significantly more than the state’s median household income, particularly for individuals attempting to balance daily expenses while also saving for retirement and emergencies.
Financial Planning Remains Key
The SmartAsset analysis emphasizes that comfortable living is not measured solely by covering basic expenses. The study’s methodology includes room for discretionary spending and long-term savings goals, which financial planners often consider essential to maintaining financial security.
As inflation, housing costs and household expenses continue to impact family budgets, the report highlights the financial challenges many Tennesseans face in reaching what experts define as a comfortable standard of living.
For a single adult in Tennessee, that benchmark now stands at just under $90,000 per year before taxes, according to the latest SmartAsset estimates.
