Transposable elements (TEs) make up a significant portion of eukaryotic genomes and are important drivers of genome evolution. However, the extent to which TEs affect phenotypic variation on a genome-wide scale in comparison with other types of variants is still unclear. We characterised TE insertion polymorphisms and their effects on gene expression in 124 wholegenome sequences from a single population of Capsella grandiflora, and contrasted this with the effects of rare single nucleotide polymorphisms (SNPs). The frequency of insertions was negatively correlated with distance to genes, as well as density of conserved non-coding elements, suggesting that the negative effects of TEs on gene regulation are important in limiting their abundance. Rare TE variants strongly influence gene expression variation, predominantly through downregulation. In contrast, rare SNPs contribute equally to up-and down-regulation, but have a weaker effect than TEs. Taken together, these results imply that TEs are a significant contributor to gene expression variation and are more likely than rare SNPs to cause extreme changes in gene expression.