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 (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
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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, 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
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| 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
(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 |
|---|---|
| A.O. Smith Corporation | Statewide |
| Adient US LLC | Athens, Columbia, Lexington, Murfreesboro, Pulaski |
| Arconic, Inc. | Alcoa, Morristown |
| Bridgestone Americas Inc. | Clarksville, La Vergne, Morrison, Nashville |
| Carrier Corporation | Collierville, Lewisburg |
| Clayton Homes | Statewide |
| Consolidated Nuclear Security, LLC | Oak Ridge |
| Delta Faucet Company of Tennessee | Jackson |
| Denso Manufacturing Tennessee, Inc. | Athens, Maryville |
| Eastman Chemical Company | Kingsport |
| Electrolux Home Products North America | Memphis, Springfield |
| Frito-Lay, Inc. | Fayetteville, Pulaski |
| General Motors LLC | Spring Hill |
| International Paper Company | Statewide |
| JTEKT Automotive Tennessee | Morristown, Vonroe |
| Kasai North America, Inc. | Manchester |
| Koch Foods | Morristown, Chattanooga |
| La-Z-Boy Manufacturing Inc. | Dayton |
| Marelli North America, Inc | Lewisburg, Pulaski, Shelbyville, Smyrna |
| Mars, Incorporated | Chattanooga, Cleveland |
| McKee Foods Corporation | Collegedale, Athens |
| MTD Products Inc | Martin |
| Nissan North America, Inc. | Dechard, Franklin, Smryna |
| Pilgrim's Pride Corporation | Chattanooga |
| Pillsbury | Murfreesboro |
| Pringles Manufacturing Company | Jackson |
| SL Tennessee | Clinton |
| Smith & Nephew, Inc. | Memphis |
| SumiRiko Tennessee, Inc. | Midway, Tazewell |
| ThyssenKrupp Elevator Manufacturing, Inc. | Memphis, Middleton |
| Trane U.S, Inc. | Statewide |
| Tyson Foods, Inc. | Goodletsville, Humboldt, Union City, Shelbyville |
| 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 2021 property tax rates in Tennessee range from $1.0322 to $6.163049 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, Q3 2021
Wall Street Cheat Sheet named Tennessee as the state with the second lowest cost of living in the nation.
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| Urban Area | Composite 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%) |
|---|---|---|---|---|---|---|---|
| Chattanooga | 91.9 | 98.7 | 87.7 | 88.6 | 92.0 | 97.7 | 92.6 |
| Cookeville | 91.7 | 98.1 | 73.7 | 95.1 | 90.9 | 91.1 | 102.9 |
| Jackson-Madison County | 86.3 | 95.9 | 73.6 | 96.6 | 88.9 | 83.3 | 89.4 |
| Kingsport | 90.8 | 97.2 | 82.2 | 87.7 | 84.7 | 92.3 | 97.2 |
| Knoxville | 84.1 | 89.0 | 70.9 | 97.5 | 84.2 | 91.8 | 87.9 |
| Memphis | 85.6 | 91.6 | 75.5 | 87.9 | 87.0 | 83.7 | 90.4 |
| Morristown | 89.6 | 99.5 | 66.1 | 102.3 | 84.9 | 95.0 | 101.5 |
| Columbia-Maury County | 94.1 | 93.4 | 91.5 | 90.9 | 91.5 | 96.8 | 97.6 |
| Nashville-Murfreesboro | 96.1 | 97.6 | 93.3 | 93.8 | 99.3 | 92.3 | 97.9 |
Sources: C2ER Cost of Living Index
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