Quick Facts
167K+
Tennesseans employed in advanced manufacturing
1,000+
Foreign-based establishments in Tennessee
160K+
Tennesseans employed by foreign-based companies
$50B+
Capital investment by foreign-based companies in Tennessee
8,300+
Tennesseans employed by Canadian-owned businesses
70+
Canadian-owned companies in Tennessee
Tune In to Success
Tennessee is consistently ranked as one of the top states for doing business in the United States, factoring in indicators such as cost of living, workforce demographics, location and more. No need to take us at our word, though— the facts speak volumes.
Economic Indicators
| Metric | Estimate | Change From 1 Year Ago |
|---|---|---|
| Non-Farm Employment (April 2023) | 3,308,400 | +86,600 |
| Private Sector Employment (April 2023) | 2,862,200 | +72,400 |
| Unemployment Rate (April 2023) | 3.3% | - |
| Labor Force (April 2023) | 3,347,540 | -36,959 |
| Personal Income (2022 Q4) | $422.5 Billion | +28.4 Billion |
| Personal Income Per Capita (2022 Q4) | $59,611 | +$3,298 |
| Real GDP (2022)* | $367.7 Billion | $15.3 Billion |
| Exports (2022) | $38,220,805,196 | +9.9% |
| New Business Entity Filings (Q1 2023, Running 12-Month Total) | 76,767 | -0.3% |
| Population (2022) | 7,051,339 | +82,988 |
| Population with High School Degree or Higher, ages 25-64 (2021) | 3,232,540 | +47,940 |
| Population with Bachelor’s Degree or Higher, ages 25-64 (2021) | 1,096,908 | +40,905 |
*Millions of chained 2012 dollars
Sources: U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; U.S. Census Bureau; Tennessee Secretary of State
Geography
| Metric | Tennessee | USA |
|---|---|---|
| Land Area in Square Miles, 2010 | 41,235 | 3,531,905 |
| Capital | Nashville | |
| Bordering States | AL, AR, GA, KY, MS, MO, NC, VA | |
| Time Zones | Central and Eastern |
Source: US Census Bureau
Demographics
| Metric | Tennessee | USA |
|---|---|---|
| Population, 2022 | 7,054,875 | 334,161,482 |
| Population, 2017 | 6,714,748 | 325,122,128 |
| Population, percent change, 2017 to 2022 | 5.07% | 2.78% |
| Population by Age, 2022 | ||
| Under 19 years old | 1,723,096 | 82,341,470 |
| 20-64 years old | 4,105,996 | 194,172,552 |
| 65 years and older | 1,225,783 | 57,647,460 |
| Median Age, 2022 | 39.1 | 38.9 |
| Civilian Veterans Age 18 Years and Older, 2021 | 394,604 | 16,501,502 |
| Mean Travel Time to Work (Minutes), Workers Age 16 and Older, 2021 | 25.2 | 25.6 |
| Population with High School Degree or Higher, Ages 25-64, 2019 | 3,232,540 | 154,507,650 |
| Percentage of Population with High School Degree or Higher, Ages 25-64, 2021 | 90.04% | 89.69% |
| Population with Bachelor's Degree or Higher, Ages 25-64, 2021 | 1,096,908 | 60,390,550 |
| Percentage of Population with Bachelor's Degree or Higher, Ages 25-64, 2021 | 30.55% | 35.06% |
Source: Lightcast, U.S. Census Bureau
Housing and Income
| Tennessee | USA | |
|---|---|---|
| Households, 2021 | 2,770,395 | 127,544,730 |
| Average Household Size, 2021 | 2.46 | 2.54 |
| Median Home Value, Owner-Occupied Units, 2021 | $235,200 | $281,400 |
| Median Gross Rent, 2021 | $981 | $1,191 |
| Building Permits, 2021 | 57,484 | 1,736,982 |
| Median Household Income, 2021 | $62,166 | $70,784 |
| Persons Below Poverty Level, Percent, 2021 | 12.2% | 11.2% |
Source: U.S. Census Bureau
Major Manufacturers in Tennessee
| Manufacturer | Tennessee Locations |
|---|---|
| American Water Heater Company | Ashland City, Johnson City |
| Arconic US LLC | Alcoa |
| Bridgestone Americas Inc. | La Vergne, Morrison, Nashville |
| Carrier Corporation | Collierville |
| Clayton Homes | Statewide |
| Consolidated Nuclear Security LLC | Oak Ridge |
| Cummins Filtration Inc. | Cookeville |
| Delta Faucet Company of Tennessee | Jackson |
| Denso Manufacturing Tennessee, Inc. | Athens, Maryville |
| Eastman Chemical Company | Kingsport |
| Electrolux Home Products Inc | Springfield |
| Frito-Lay, Inc. | Fayetteville, Pulaski |
| General Motors LLC | Spring Hill |
| Green Mountain Coffee Roasters Inc | Knoxville |
| Hankook Tire Manufacturing Tennessee | Clarksville |
| International Paper Company | Statewide |
| Kasai North America, Inc. | Manchester |
| Koch Foods | Chattanooga, Morristown |
| La-Z-Boy Manufacturing Inc. | Dayton |
| Mars, Incorporated | Chattanooga, Cleveland |
| McKee Foods Corporation | Collegedale |
| MTD Consumer Group Inc | Martin |
| Nissan North America, Inc. | Dechard, Smryna |
| Philips North America LLC | Nashville |
| Pilgrim's Pride Corporation | Chattanooga |
| Pillsbury Co | Murfreesboro |
| Pringles Manufacturing Company | Jackson |
| Schneider Electric USA Inc. | Smyrna |
| SL Tennessee | Clinton |
| Smith & Nephew, Inc. | Memphis |
| Smyrna Ready Mix | Nashville |
| State Industries Inc. | Ashland City |
| SumiRiko Tennessee, Inc. | Midway, Tazewell |
| ThyssenKrupp Elevator Manufacturing, Inc. | Memphis, Middleton |
| Trane U.S, Inc. | Clarksville, Nashville |
| Tyson Foods, Inc. | Goodletsville, Humboldt, Shelbyville, Union City |
| Volkswagen Group of America Chattanooga Operations LLC | Chattanooga |
| Westrock Services | Statewide |
| Whirlpool Corporation | Cleveland |
The concentration of Tennesseans working in the manufacturing sector is 1.35 times the national average.
Tax Rates in Tennessee
| Type of Tax | Rate |
|---|---|
| Excise (state) | 6.5% on the net earnings of the company derived from doing business in Tennessee |
| Franchise (state) | 0.25% of the greater of net worth or real and tangible property in Tennessee (minimum $100) |
| Property (local) | The 2021 property tax rates in Tennessee range from $1.0322 to $6.163049 per $100 of assessed value<br> Assessment Percentages:<ul><li>Residential Property: 25%</li><li>Farm Property: 25%</li><li>Commercial and Industrial Property: 40%</li><li>Public Utility Property: 55%</li><li>Business Personal Property: 30% </li></ul> |
| Sales (state) | The sales tax rate on food is 4%. All other tangible personal property, unless specifically exempted, is 7% |
| Sales (local) | Ranges from 1.50% to 2.75% |
| Unemployment Insurance (state) | The first $7,000 in wages paid to each employee are subject to this tax. The new employer premium rate for most industries, including manufacturing sector 31-33 and mining is 2.7%. The rate is higher for construction (6.0%). Minimum and maximum experience rates are 0.01% and 10.0%, respectively. |
Tennessee has the second-lowest state and local tax burden per capita, and no income tax on wages.
Cost of Living Index, 2023
| Urban Area | Composite Index (100%) | Grocery Items (15.73%) | Housing (28.10%) | Utilities (9.06%) | Transportation (8.53%) | Health Care (4.83%) | Misc. Goods and Services (33.75%) |
|---|---|---|---|---|---|---|---|
| Chattanooga | 90.7 | 97.1 | 87.9 | 92.5 | 88.1 | 92.0 | 90.3 |
| Cookeville | 88.8 | 96.2 | 75.2 | 87.8 | 89.8 | 83.8 | 97.7 |
| Jackson-Madison County | 86.1 | 96.5 | 70.6 | 85.6 | 89.1 | 86.5 | 93.7 |
| Knoxville | 86.7 | 99.1 | 74.5 | 93.5 | 89.3 | 87.8 | 88.7 |
| Memphis | 89.8 | 100.2 | 80.8 | 89.7 | 88.2 | 86.5 | 93.9 |
| Morristown | 85.3 | 95.2 | 67.4 | 98.8 | 82.0 | 88.3 | 93.2 |
| Maury County | 95.9 | 97.0 | 96.3 | 90.5 | 91.3 | 89.3 | 98.9 |
| Nashville-Murfreesboro | 98.8 | 100.1 | 106.5 | 102.1 | 91.8 | 90.8 | 94.4 |
C2ER’s Cost of Living Index ranked Tennessee eighth for lowest cost of living in the nation for the year 2023.
Sources: C2ER Cost of Living Index
Looking for more information?
Explore our County Profile Tool to view and download comprehensive data by Tennessee county or region.