Jamie Stitt
Assistant Commissioner, Business and Workforce Development
Tennessee Department of Economic and Community Development
312 Rosa L. Parks Ave., Nashville, TN 37243Common Search Terms
We are What we Make.
THE VERY BEST, MADE BY THE VERY BEST.
Tennessee is more than panoramic views and high-powered entertainment. In bustling cities and charming towns spread across three distinct regions, Tennessee offers a cost of living well below the national average. Let us surprise you.
With our ideal location and growing economy, Tennessee offers an unmatched climate for your business to flourish.
From the mountains to the Mississippi, Tennessee boasts some of the country’s lowest housing costs and a skilled and dedicated workforce focused on perfection. Our business-friendly environment and history of innovation brings many of the world’s greatest brands to the Volunteer State.
Get to know us. We think you’ll like us.
Economic Indicators
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| Metric | Estimate | Change From 1 Year Ago |
|---|---|---|
| Non-Farm Employment (November 2025) | 3,414,000 | +31,300 |
| Private Sector Employment (November 2025) | 2,851,053 | -2,505 |
| Unemployment Rate (November 2025) | 3.6% | -2.7% |
| Labor Force (November 2025) | 3,518,300 | +81,341 |
| Personal Income (2025 Q3) | $508.7 Billion | +25.6 Billion |
| Personal Income Per Capita (2025 Q3) | $69,757 | +$2,998 |
| Real GDP (2024)* | $440.2 Billion | -$11.9 Billion |
| Exports (2025) | $37,735,458,014 | -4.2% |
| New Business Entity Filings (Q3 2024, Running 12-Month Total) | 73,945 | -4.2% |
| Population (2024) | 7,227,750 | +101,261 |
| Population with High School Degree or Higher, ages 25-64 (2024) | 3,404,020 | +52,016 |
| Population with Bachelor’s Degree or Higher, ages 25-64 (2024) | 1,276,288 | +37,308 |
*Millions of chained 2017 dollars
Sources: U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; U.S. Census Bureau; Tennessee Secretary of State
Geography
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| 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
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| Metric | Tennessee | USA |
|---|---|---|
| Population, 2024 | 7,227,750 | 340,110,990 |
| Population, 2021 | 6,975,218 | 331,893,745 |
| Population, percent change, 2021 to 2024 | 3.6% | 2.5% |
| Population by Age, 2024 | ||
| Under 19 years old | 1,751,013 | 81,967,716 |
| 20-64 years old | 4,202,758 | 196,897,991 |
| 65 years and older | 1,273,979 | 61,245,283 |
| Median Age, 2024 | 39.1 | 39.2 |
| Civilian Veterans Age 18 Years and Older, 2024 | 400,477 | 15,701,246 |
| Mean Travel Time to Work (Minutes), Workers Age 16 and Older, 2024 | 26.5 | 27.2 |
| Population with High School Degree or Higher, Ages 25-64, 2024 | 3,404,020 | 157,986,726 |
| Percentage of Population with High School Degree or Higher, Ages 25-64, 2024 | 91.4% | 90.5% |
| Population with Bachelor's Degree or Higher, Ages 25-64, 2024 | 1,276,288 | 67,518,946 |
| Percentage of Population with Bachelor's Degree or Higher, Ages 25-64, 2024 | 34.3% | 38.7% |
Source: Lightcast, U.S. Census Bureau
HOUSING AND INCOME
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| Tennessee | USA | |
|---|---|---|
| Households, 2024 | 2,928,765 | 132,737,146 |
| Average Household Size, 2024 | 2.42 | 2.50 |
| Median Home Value, Owner-Occupied Units, 2024 | $332,600 | $360,600 |
| Median Gross Rent, 2024 | $1,284 | $1,487 |
| Building Permits, 2024 | 44,863 | 1,478,000 |
| Median Household Income, 2024 | $71,997 | $81,604 |
| Persons Below Poverty Level, Percent, 2024 | 13.5% | 12.1% |
Source: U.S. Census Bureau
MAJOR MANUFACTURERS IN TENNESSEE
(in alphabetical order)
The concentration of Tennesseans working in the manufacturing sector is 1.35 times the national average.
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| 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 |
TAX RATES IN TENNESSEE
Tennessee has the second-lowest state and local tax burden per capita, and no income tax on wages.
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| 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 2024 property tax rates in Tennessee range from $0.8345 to $6.5854 per $100 of assessed value Assessment Percentages:
|
| 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. |
COST OF LIVING INDEX, 2025
C2ER’s Cost of Living Index ranked Tennessee tied for eighth for lowest cost of living in the nation for the year 2025.
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| Urban Area | Composite Index (100%) | Grocery Items (15.00%) | Housing (29.53%) | Utilities (8.45%) | Transportation (8.71%) | Health Care (4.80%) | Misc. Goods and Services (33.51%) |
|---|---|---|---|---|---|---|---|
| Chattanooga | 87.6 | 96.9 | 77.0 | 88.9 | 89.4 | 86.9 | 92.0 |
| Cookeville | 87.4 | 95.7 | 74.9 | 83.8 | 88.4 | 74.9 | 97.0 |
| Jackson-Madison County | 90.3 | 95.2 | 75.7 | 87.8 | 91.7 | 93.6 | 100.8 |
| Knoxville | 86.0 | 98.2 | 76.8 | 87.8 | 87.5 | 75.9 | 89.3 |
| Memphis | 89.2 | 98.7 | 83.5 | 84.7 | 87.1 | 79.4 | 93.1 |
| Morristown | 88.6 | 93.9 | 78.4 | 95.0 | 83.5 | 92.6 | 94.5 |
| Maury County | 93.2 | 96.0 | 90.7 | 79.9 | 91.1 | 96.2 | 97.7 |
| Nashville-Murfreesboro | 98.5 | 99.9 | 102.1 | 97.2 | 90.5 | 91.4 | 98.0 |
Sources: C2ER Cost of Living Index
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