Jamie Stitt

Assistant Commissioner, Business and Workforce Development

Tennessee Department of Economic and Community Development
312 Rosa L. Parks Ave., Nashville, TN 37243
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Tennessee Quick Facts

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.

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Economic Indicators

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MetricEstimateChange From 1 Year Ago
Non-Farm Employment (November 2021)3,108,900+87,800
Private Sector Employment (Novemer 2021)2,675,000+83,100
Unemployment Rate (November 2021)4.0%-1.6%
Labor Force (November 2021)3,311,732-3,147
Personal Income (2021 Q3)$373.8 Billion+23.1 Billion
Personal Income Per Capita (2021 Q3)$53,790+$2,928
Real GDP (2020)*$316.3 Billion-$12.7 Billion
Exports (2020)$28,133,577,337-9.5%
New Business Entity Filings (Q3 2021, Running 12-Month Total)72,196+12.6%
Population (2021)6,951,871+65,307
Population with High School Degree or Higher, ages 25-64 (2019)3,186,789+18,877
Population with Bachelor’s Degree or Higher, ages 25-64 (2019)1,085,458+64,066

*Millions of chained 2012 dollars

Sources: Tennessee Department of Labor and Workforce Development; U.S. Bureau of Economic Analysis; U.S. Census Bureau; International Trade Administration, U.S. Department of Commerce; Tennessee Secretary of State

Geography

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MetricTennesseeUSA
Land Area in Square Miles, 201041,2353,531,905
CapitalNashville
Bordering StatesAL, AR, GA, KY, MS, MO, NC, VA
Time Zones Central and Eastern

Source: US Census Bureau

DEMOGRAPHICS

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MetricTennesseeUSA
Population, 20216,951,871331,820,028
Population, 20166,651,277323,071,755
Population, percent change, 2016 to 20214.5%2.7%
Population by Age, 2021
Under 19 years old1,688,43681,369,663
20-64 years old4,046,392193,012,059
65 years and older1,217,04357,438,305
Median Age, 201939.038.5
Civilian Veterans Age 18 Years and Older, 2019422,16117,418,351
Mean Travel Time to Work (Minutes), Workers Age 16 and Older, 201925.927.6
Population with High School Degree or Higher, Ages 25-64, 20193,186,789152,920,772
Percentage of Population with High School Degree or Higher, Ages 25-64, 201989.6%89.5%
Population with Bachelor's Degree or Higher, Ages 25-64, 20191,085,45859,049,288
Percentage of Population with Bachelor's Degree or Higher, Ages 25-64, 201930.5%34.6%

Source: US Census Bureau and EMSI

HOUSING AND INCOME

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TennesseeUSA
Households, 20192,654,737122,802,852
Average Household Size, 20192.512.61
Median Home Value, Owner-Occupied Units, 2019$191,900$240,500
Median Gross Rent, 2019$904$1,097
Building Permits, 202049,1351,451,579
Median Household Income, 2019$56,071$65,712
Persons Below Poverty Level, Percent, 201913.9%12.3%

Source: US 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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ManufacturerTennessee Locations
A.O. Smith CorporationAshland City, Cookeville, Franklin, Johnson City, Knoxville, Lebanon, Nashville
Adient US LLCAthens, Columbia, Lexington, Murfreesboro, Pulaski
Arconic, Inc.Alcoa, Morristown
Babcock & Wilcox (Y-12)Kingsport, Oak Ridge
Bridgestone Americas Inc.Clarksville, La Vergne, Morrison, Nashville
Clayton HomesStatewide
Cummins Inc.Memphis
Denso Manufacturing Tennessee, Inc.Athens, Maryville
Eastman Chemical CompanyJohnson City, Kingsport
Electrolux Home Products North AmericaMemphis, Springfield
Frito-Lay, Inc.Statewide
General Motors LLCSpring Hill
International Paper CompanyMemphis
JTEKT Automotive TennesseeVonore, Morristown, Memphis
Marelli North America, IncLewisburg, Pulaski, Shelbyville, Smyrna
Mars, IncorporatedChattanooga, Cleveland, Franklin, Lebanon, Thompson Station
McKee Foods CorporationCollegedale
Nissan North America, Inc.Smyrna, Franklin, Decherd
SmileDirectClubAntioch, Nashville
Smith & Nephew, Inc.Memphis
ThyssenKrupp Elevator Manufacturing, Inc.Chattanooga, Memphis, Middleton
Trane U.S, Inc.Clarksville, Knoxville, Chattanooga, La Vergne, Kingsport
Tyson Foods, Inc.Shelbyville, Goodlettsville, Union City
Volkswagen Group of America Chattanooga Operations LLCChattanooga
Whirlpool CorporationCleveland, Knoxville

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 TaxRate
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
Assessment Percentages:
  • Residential Property: 25%
  • Farm Property: 25%
  • Commercial and Industrial Property: 40%
  • Public Utility Property: 55%
  • Business Personal Property: 30%
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, Q3 2021

Calculate Your Cost of Living

Wall Street Cheat Sheet named Tennessee as the state with the second lowest cost of living in the nation.

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Urban AreaComposite Index (100%)Grocery Items (17.26%)Housing (30.90%)Utilities (10.21%)Transportation (7.54%)Health Care (4.42%)Misc. Goods and Services (29.67%)
Chattanooga91.998.787.788.692.097.792.6
Cookeville91.798.173.795.190.991.1102.9
Jackson-Madison County86.395.973.696.688.983.389.4
Kingsport90.897.282.287.784.792.397.2
Knoxville84.189.070.997.584.291.887.9
Memphis85.691.675.587.987.083.790.4
Morristown89.699.566.1102.384.995.0101.5
Columbia-Maury County94.193.491.590.991.596.897.6
Nashville-Murfreesboro96.197.693.393.899.392.397.9

Sources: C2ER Cost of Living Index

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