Top States for Business

5. Tennessee


The Volunteer State steps up with great infrastructure and economy, but poor health and a lack of inclusiveness hurt.

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Tennessee Score and Ranking

Category 2021 Score 2021 Rank 2019 Rank 2021 Grade
Cost of Doing Business265817A-
Life, Health & Inclusion11346--F
Business Friendliness117207B-
Access to Capital1241423B
Technology & Innovation823223C-
Cost of Living6586A-

Economic Profile

Governor: Bill Lee, Republican

Population: 6,886,834

GDP growth (Q1 2021): 7.4%

Unemployment rate (May 2021): 5%

Top corporate tax rate: 6.5%

Top individual income tax rate: None

Gasoline tax: 27.40 cents/gallon

Bond rating (Moody's/S&P): Aaa, stable/AAA, stable

Major private employers: Covenant Health, FedEx

Economic profile sources: U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federation of Tax Administrators, American Petroleum Institute (excluding 18.40 cent/gallon federal tax), Moody's Investor Service, S&P Global Market Intelligence

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