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.

As a result, Tennessee boasts a pro-business regulatory climate, as well as a top Aaa rating from Moody’s on its general obligation debt. 

Tennessee, which ranks third for its overall cost of doing business, and 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. Hit on all of the cylinders in this manner, and you’re bound to reduce the cost of doing business. Area Development 2023 Top States for doing Business


  • No state personal income tax
  • No state property tax
  • Competitive corporate taxes

Competitive Costs

  • Building costs 9% below the national average
  • Electricity provided by the Tennessee Valley Authority (December 2023)
    • Industrial electricity rates:   28% below the national average
    • Commercial electrical rates match the national average
    • Residential electrical rates:  15% below the national average


  • Right-to-work state
  • Lower unionization rate of 7.2%. (vs. 10.0% national rate)
  • Over 1/3 of union members are in the public sector
    (Source: BLS and 2023)
  • 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

Top State for Doing Business
Area Development 2023
Best State for Business
Chief Executive 2023
Cost of Doing Business
CNBC 2023
Best Business Climate
Business Facilities 2023