Gallatin, TN vs. Lebanon, TN: Cost of Living Comparison (2025)
When it comes to cost of living, which Middle Tennessee city wins out in 2025 – Gallatin or Lebanon? This article provides a detailed cost of living comparison to help families relocating, professionals choosing between job offers, or anyone comparing the real-life monthly expenses of living in Gallatin vs Lebanon.
1. Housing Costs
Housing is often the biggest factor in cost of living. Here’s how typical rent and mortgage costs compare between Gallatin and Lebanon:
| Housing Type | Gallatin | Lebanon |
|---|---|---|
| 2BR Apartment (Monthly Rent) | $1,450 | $1,550 |
| 3BR House (Median Price) | $375,000 | $410,000 |
🏆 Winner: Gallatin. Housing costs, both for renting and buying, tend to be about 5-10% lower in Gallatin compared to Lebanon.
2. Utilities and Energy Costs
Utility bills are another major monthly expense. In Gallatin and Lebanon, expect to pay around:
- Electricity: $120-150/month
- Water/Sewer/Trash: $70-90/month
- Internet: $60-80/month
Both cities experience hot summers and mild winters, so heating and cooling costs are fairly similar. There are no major differences in utility rates or energy efficiency programs between the two.
🏆 Winner: Tie. Utility costs are nearly identical in Gallatin and Lebanon.
3. Groceries and Daily Expenses
For a family of four, expect to spend around $800-1000 per month on groceries in either Gallatin or Lebanon. Both cities have a mix of major supermarkets, local grocery stores, and farmers markets with comparable prices.
Eating out is also similarly priced, with a meal at a casual restaurant averaging $12-15 per person in both cities. Daily goods and services like haircuts, dry cleaning, and car maintenance also cost about the same.
🏆 Winner: Tie. The cost of food, daily goods, and services is nearly the same in Gallatin and Lebanon.
4. Taxes and Fees
Both Gallatin and Lebanon have a property tax rate around 0.75%. However, Gallatin’s slightly lower home values give it an edge. For a $350,000 home, annual property taxes would be about $2,625 in Gallatin vs $2,875 in Lebanon.
Neither city has income taxes beyond what the state of Tennessee collects. Sales tax is 9.75% in both Gallatin and Lebanon. Vehicle registration fees and other local taxes are also very similar.
🏆 Winner: Gallatin. With lower home values, Gallatin residents pay slightly less in property taxes each year. Other taxes and fees are equal between the two cities.
5. Cost Summary
| Expense Category | Gallatin | Lebanon |
|---|---|---|
| Housing (3BR Home) | $1,875 | $2,050 |
| Utilities | $270 | $270 |
| Groceries | $900 | $900 |
| Transportation | $300 | $300 |
| Taxes | $220 | $240 |
| Misc Expenses | $500 | $500 |
| Estimated Monthly Total | $4,065 | $4,260 |
Figures above are estimates for a family of four and reflect gross monthly expenses (pre-tax income). For a personalized budget, try our Sample Monthly Budgets for Gallatin in 2025.
6. Lifestyle Fit
While Gallatin is slightly more affordable overall, both cities offer a similar suburban lifestyle and amenities. Some other factors to consider:
- Gallatin is located directly on the shores of Old Hickory Lake, offering more waterfront recreation.
- Lebanon has quicker access to I-40 and Nashville, with a typical commute of 30-35 minutes vs 40-45 minutes from Gallatin.
- Summers are hot and humid in both cities, with average July highs around 90°F.
7. Frequently Asked Questions
Q: Is Gallatin more affordable than Lebanon?
A: Yes, the cost of living in Gallatin is about 5% lower than Lebanon, mainly due to cheaper housing.
Q: Which city has lower rent?
A: Rent prices are around 5-10% lower in Gallatin compared to Lebanon for a similar apartment or home.
Q: Where is it cheaper to buy a home?
A: The median home price in Gallatin is about $35,000 less than in Lebanon, so buying is more affordable in Gallatin.
8. Conclusion
While the cost of living difference between Gallatin and Lebanon isn’t huge, Gallatin does come out ahead by about 5% overall. This is mostly due to lower housing costs, both for renting and buying.
For a family looking to stretch their budget, Gallatin may be the better choice. But for those prioritizing a shorter commute to Nashville, Lebanon’s quick highway access could be worth the slightly higher living costs.
Ultimately, both cities provide an affordable suburban lifestyle just outside of Nashville. For more details on Gallatin’s living costs, see our full Cost of Living in Gallatin: Your Monthly Budget Guide for 2025.