Jamie Stitt

Assistant Commissioner, Business and Workforce Development

Tennessee Department of Economic and Community Development
312 Rosa L. Parks Ave., Nashville, TN 37243
Do Business in Tennessee
I am a:

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.

filter background

Economic Indicators

scroll
MetricEstimateChange From 1 Year Ago
Non-Farm Employment (January 2021)3,028,400-122,800
Private Sector Employment (January 2021)2,602,300-108,300
Unemployment Rate (January 2021)5.1%+1.4%
Labor Force (January 2021)3,316,943-21,503
Personal Income (2020 Q3)$349.9 Billion+16.5 Billion
Personal Income Per Capita (2020 Q3)$50,732+$1,971
Real GDP (2019)$330.8 Billion+$7.2 Billion
Exports (2020)$28,133,577,337-9.5%
New Business Entity Filings (2019 Q4)38,858+8.0%
Population (2020)6,891,870+62,696
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

*Inflation-Adjusted to 2018 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

scroll
MetricTennesseeUSA
Land Area in Square Miles, 201841,2353,531,905
CapitalNashville
Bordering StatesAL, AR, GA, KY, MS, MO, NC, VA
Time Zones Central and Eastern

Source: US Census Bureau

DEMOGRAPHICS

scroll
MetricTennesseeUSA
Population, 20196,829,174328,239,523
Population, 20146,541,223318,301,008
Population, percent change, 2014 to 20194.4%3.1%
Population by Age, 2019
Under 18 years old1,510,75272,967,785
18-64 years old4,179,457201,197,710
65 years and older1,138,96554,074,028
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 of Higher, Ages 25-64, 201930.5%34.6%

Source: US Census Bureau

HOUSING AND INCOME

scroll
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 percentage of Tennesseans working in the manufacturing sector is 1.38 times the national average.

scroll
ManufacturerTennessee Locations
Babcock & Wilcox (Y-12)Kingsport, Oak Ridge
BridgestoneStatewide
Calsonic Kansei NALewisburg, Shelbyville, Smyrna
Clayton Manufactured HomesStatewide
DensoAthens, Maryville
Eastman Chemical Co.Johnson City, Kingsport
ElectroluxMemphis, Springfield
General MotorsSpring Hill
International Paper CompanyStatewide
McKee Foods CorporationCollegedale
NissanSmyrna, Franklin, Decherd
Smith & Nephew Inc.Memphis
Trane CompanyChattanooga, Clarksville, Knoxville, Memphis, Nashville
Tyson FarmsShelbyville, Goodlettsville, Union City
VolkswagenChattanooga, Lenoir City
WhirlpoolCleveland, Knoxville, La Vergne

TAX RATES IN TENNESSEE

Tennessee has the second-lowest state and local tax burden per capita, and no income tax on wages.

scroll
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 2020 property tax rates in Tennessee range from $1.0322 to $7.2459 per $100 of assessed valuennAssessment 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, 2020

Calculate Your Cost of Living

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

scroll
Urban AreaComposite Index (100%)Grocery Items (14.16%)Housing (27.87%)Utilities (9.30%)Transportation (8.87%)Health Care (4.69%)Misc. Goods and Services (35.11%)
Chattanooga93.5100.692.391.689.294.493.2
Clevelandn85.790.177.688.584.092.889.1
Jackson-Madison County83.687.567.396.088.582.090.6
Johnson City97.694.697.391.785.687.4105.0
Kingsport92.795.991.584.281.291.397.8
Knoxville83.386.068.594.386.892.188.9
Memphis84.988.774.189.285.680.991.2
Morristown87.495.870.7101.982.59693.6
Columbia-Maury County92.195.480.590.690.588.3101.2
Nashville-Murfreesboro96.6100.292.392.794.695.3100.2

Sources: C2ER Cost of Living Index

Tennessee State Flag Icon

Need more data?

Our new county profile tool allows users to view, print and download comprehensive data by county or region.

Texture Picture