- Only 2% difference — these cities cost almost the same
- Neither state has income tax — both are tax-friendly
- Nashville's property tax (0.71%) is way lower than Texas (1.8%)
- Dallas edges out on rent; Nashville wins on property taxes and utilities
Dallas and Nashville have been trading spots on "fastest growing cities" lists for years. Both benefit from business-friendly states, no state income tax, and an influx of corporate relocations. But which one is actually cheaper to live in? The answer: they're remarkably close, but Dallas has a slight edge.
Overall: Nearly Identical
Dallas has an overall cost-of-living index of 101.0 — essentially the national average. Nashville is at 103.0. That's just a 2% difference. On a $75,000 salary, the gap works out to about $75/month. Not nothing, but not a dealbreaker.
Housing: Dallas Is Slightly Cheaper
Dallas's housing index (92.0) is actually below the national average, while Nashville's (102.0) sits just above it. Here's the rent breakdown:
- Studio: $950/mo in Dallas vs $1,050/mo in Nashville (+$100)
- 1-bedroom: $1,100/mo vs $1,200/mo (+$100)
- 2-bedroom: $1,400/mo vs $1,450/mo (+$50)
- 3-bedroom: $1,900/mo vs $1,950/mo (+$50)
The differences are small — $50–$100/month. Dallas's DFW metro is simply so sprawling that there's more housing supply, keeping prices in check. Nashville's more compact footprint means slightly higher demand per square mile.
Groceries and Transportation
Groceries: Dallas 98.0, Nashville 95.0 — Nashville is 3% cheaper on food. Practically, this means maybe $20/month difference.
Transportation: Dallas 95.0, Nashville 94.0 — virtually identical. Both are car-centric cities with similar gas prices. DART (Dallas) has more rail coverage than Nashville's bus system, but neither city is a public transit powerhouse.
Utilities and Healthcare
Utilities are close: Dallas 103.0, Nashville 95.0. Nashville wins here — Tennessee's electricity is cheap thanks to TVA hydroelectric power. Dallas's hot summers and higher electric rates add up.
Healthcare: Dallas 102.0, Nashville 98.0. Interestingly, Nashville — the "Healthcare Capital of the World" (HCA, Community Health Systems, and dozens of health companies are headquartered there) — has slightly below-average healthcare costs. Competition works.
Taxes: Both Win
Neither Texas nor Tennessee has a state income tax. This is a huge draw for both cities and a major reason for their explosive growth. The tax picture is similar:
- Sales tax: Texas 6.25% + local (~8.25% total in Dallas) vs Tennessee 7% + local (~9.25% in Nashville — one of the highest in the country)
- Property tax: Texas averages 1.8%, Tennessee about 0.71%. This is a major difference. On a $350,000 home: $6,300/year in Dallas vs $2,485/year in Nashville.
Nashville's massive property tax advantage saves homeowners thousands per year, which partially offsets its higher sales tax. Compare your take-home pay in both states at TaxTakeHome.com.
What Sets Them Apart
Dallas wins on: job diversity (tech, finance, healthcare, energy), larger metro with more suburbs to choose from, cheaper housing, international airport hub (DFW), more diverse population
Nashville wins on: lower property taxes, cheaper utilities, unique culture and music scene, smaller city feel, proximity to nature (Smoky Mountains 3 hours away), lower sales tax... wait, no — Nashville has higher sales tax. But Nashville wins on entertainment and "cool factor."
The Bottom Line
These cities are so close in cost that the decision should come down to career opportunities, lifestyle preferences, and whether you're renting or buying. Renters will find Dallas marginally cheaper. Homeowners should seriously consider Nashville's massive property tax savings.
Run your personalized Dallas vs Nashville comparison on MoveNumbers, or explore all cities to find your best match.
Data from BLS, HUD Fair Market Rents 2024–2025, Census Bureau, and state tax authorities.