Lebanon, TN vs. Gallatin, TN: Cost of Living Comparison (2025)
Which city gives you more for your money – Lebanon or Gallatin, Tennessee? This article provides a detailed cost of living comparison to help families relocating, professionals choosing between job offers, or anyone debating between Lebanon vs Gallatin in 2025 decide which city best fits their lifestyle and budget.
1. Housing Costs
Housing is often the biggest factor in cost of living. Here’s how typical rent and home prices compare between Lebanon and Gallatin:
| Housing Type | Lebanon | Gallatin |
|---|---|---|
| 2BR Apartment Rent | $1,250 | $1,400 |
| 3BR House Mortgage | $1,600 | $1,750 |
| Median Home Price | $325,000 | $360,000 |
🏆 Winner: Lebanon. A household moving from Gallatin to Lebanon might save $150-200 per month on housing alone based on these averages.
2. Utilities and Energy Costs
Utility bills are another important monthly expense. Lebanon and Gallatin have fairly similar climates, so heating and cooling needs are comparable. Expect to budget around $200-250 per month for electricity, gas, water, and sewer in a typical home in either city.
Both cities offer “time of use” electricity plans that provide cheaper rates for off-peak hours, which can help reduce bills.
🏆 Winner: Tie. Utility costs are very close between Lebanon and Gallatin.
3. Groceries and Daily Expenses
For a family of four, plan on spending around $800-1000 per month on groceries in either Lebanon or Gallatin. Restaurant prices are reasonable in both cities, with a meal out for two averaging $40-50 at a mid-range spot.
Gas prices tend to be slightly lower in Lebanon by about $0.10 per gallon. For other daily goods and services like haircuts, gym memberships, and basic healthcare, costs are nearly identical.
🏆 Winner: Slight edge to Lebanon due to typically lower gas prices, but overall it’s very close.
4. Taxes and Fees
Neither Lebanon nor Gallatin charges a local income tax, so you’ll just owe state and federal taxes on your earnings. Sales tax is 9.75% in both cities.
Property taxes are a bit higher in Gallatin at 0.85% vs 0.65% in Lebanon for a similarly valued home. So for a $350,000 house, annual property taxes would be about $3,000 in Gallatin compared to $2,300 in Lebanon.
🏆 Winner: Lebanon has a slight advantage with lower property tax rates.
5. Cost of Living Summary
| Category | Lebanon | Gallatin |
|---|---|---|
| Housing | $1,600 | $1,750 |
| Utilities | $225 | $225 |
| Groceries | $900 | $900 |
| Transportation | $300 | $325 |
| Taxes | $190 | $250 |
| Misc | $400 | $400 |
| Estimated Monthly Total | $3,615 | $3,850 |
All income figures are expressed in gross monthly income (pre-tax). Based on these estimates, living in Lebanon will cost about $235 less per month compared to Gallatin, or a savings of over $2,800 per year.
6. Lifestyle Fit
While Lebanon comes out ahead on overall affordability, Gallatin has some perks that could make it a better fit for certain lifestyles:
- Gallatin is a bit more walkable and has more public transit options to get around without a car.
- Gallatin is slightly closer to Nashville, so commute times are shorter for those working in the city.
- Lebanon’s historic downtown is larger and offers more local shops and restaurants in a concentrated area.
Both cities are growing quickly and offer a mix of newer and older neighborhoods, with Lebanon tending to have slightly more space and lower density. Summers are about 2°F cooler on average in Gallatin due to the higher elevation.
7. Frequently Asked Questions
Q: Is Lebanon more affordable than Gallatin?
A: Yes, the cost of living in Lebanon is estimated to be about 6% lower than Gallatin based on 2025 prices, mainly due to cheaper housing and lower taxes.
Q: Which city has lower rent prices?
A: Typical rent for a 2-bedroom apartment is around $150 less per month in Lebanon compared to Gallatin.
Q: Where is it cheaper to buy a home?
A: The median home price in Lebanon is about $35,000 lower than in Gallatin, and property tax rates are also more favorable in Lebanon.
8. Conclusion
While both Lebanon and Gallatin provide a high quality of life in the Nashville area, Lebanon comes out ahead in this cost of living comparison. It’s an especially attractive option for those looking to buy a home, with lower prices and property taxes.
However, Gallatin could still be the better choice for some depending on lifestyle priorities like walkability, access to transit, and proximity to the city. Budgeting is a personal process, so consider your own needs and preferences when deciding.
For more insights, check out our guides on budgeting to live in Lebanon or the overall cost of living in Lebanon to help inform your decision. Best of luck with your move to Tennessee!