Business Climate
Competitive Business Costs
Leaders at all levels of Tennessee government understand the necessity to generate profits and have established tax structures and incentives that enable competitive operations in a global economy.
No state personal income tax
No state property tax
Competitive corporate taxes
Business Friendliness by CNBC
By The Numbers
Competitive Rates
Tennessee, which ranks third for its overall cost of doing business, is rated highly for its competitive labor environment, generous business incentives, positive tax picture, favorable regulatory environment, reasonable utility rates, easily accessed project funding, exceptional workforce development concepts, and outstanding shovel-ready sites, ranking first in this last category. It is one of Area Development’s 2025 Top States for doing Business. Here you’ll discover:
Electricity provided by the Tennessee Valley Authority
Industrial electricity rates: 28% below the national average
Commercial electrical rates match the national average
Residential electrical rates: 15% below the national average
Workforce
- Right-to-work state
- Lower unionization rate of 4.4%. vs. 10% national rate (Source: BLS and unionstats.com 2025)
- Competitive wages
- Successful overhaul of tort and workers compensation laws. (TN ECD)
- Customized workforce training
- Extremely strong work ethics
- State funded tuition to two-year colleges for high school graduates