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 (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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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, 20227,054,875334,161,482
Population, 20176,714,748325,122,128
Population, percent change, 2017 to 20225.07%2.78%
Population by Age, 2022
Under 19 years old1,723,09682,341,470
20-64 years old4,105,996194,172,552
65 years and older1,225,78357,647,460
Median Age, 202239.138.9
Civilian Veterans Age 18 Years and Older, 2021394,60416,501,502
Mean Travel Time to Work (Minutes), Workers Age 16 and Older, 202125.225.6
Population with High School Degree or Higher, Ages 25-64, 20193,232,540154,507,650
Percentage of Population with High School Degree or Higher, Ages 25-64, 202190.04%89.69%
Population with Bachelor's Degree or Higher, Ages 25-64, 20211,096,90860,390,550
Percentage of Population with Bachelor's Degree or Higher, Ages 25-64, 202130.55%35.06%

Source: Lightcast, U.S. Census Bureau

HOUSING AND INCOME

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TennesseeUSA
Households, 20212,770,395127,544,730
Average Household Size, 20212.462.54
Median Home Value, Owner-Occupied Units, 2021$235,200$281,400
Median Gross Rent, 2021$981$1,191
Building Permits, 202157,4841,736,982
Median Household Income, 2021$62,166$70,784
Persons Below Poverty Level, Percent, 202112.2%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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ManufacturerTennessee Locations
A.O. Smith CorporationStatewide
Adient US LLCAthens, Columbia, Lexington, Murfreesboro, Pulaski
Arconic, Inc.Alcoa, Morristown
Bridgestone Americas Inc.Clarksville, La Vergne, Morrison, Nashville
Carrier CorporationCollierville, Lewisburg
Clayton HomesStatewide
Consolidated Nuclear Security, LLCOak Ridge
Delta Faucet Company of TennesseeJackson
Denso Manufacturing Tennessee, Inc.Athens, Maryville
Eastman Chemical CompanyKingsport
Electrolux Home Products North AmericaMemphis, Springfield
Frito-Lay, Inc.Fayetteville, Pulaski
General Motors LLCSpring Hill
International Paper CompanyStatewide
JTEKT Automotive TennesseeMorristown, Vonroe
Kasai North America, Inc.Manchester
Koch FoodsMorristown, Chattanooga
La-Z-Boy Manufacturing Inc.Dayton
Marelli North America, IncLewisburg, Pulaski, Shelbyville, Smyrna
Mars, IncorporatedChattanooga, Cleveland
McKee Foods CorporationCollegedale, Athens
MTD Products IncMartin
Nissan North America, Inc.Dechard, Franklin, Smryna
Pilgrim's Pride CorporationChattanooga
PillsburyMurfreesboro
Pringles Manufacturing CompanyJackson
SL TennesseeClinton
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 LLCChattanooga
Westrock ServicesStatewide
Whirlpool CorporationCleveland

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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