Tennessee ranks 12th in new economic outlook rankings
(The Center Square) – Tennessee ranks 12th in the new economic outlook rankings from the American Legislative Exchange Council.
The annual rankings from ALEC – an organization favoring limited government, free markets and federalism – rank states on 15 state policy categories including gross domestic product, domestic migration and non-farm payroll employment.
Tennessee also ranked 12th in the backward-looking economic performance metric.
Tennessee earned top rankings for its lack of a personal income tax, lack of estate/inheritance tax, $7.25 state minimum wage using the federal mark and for being a right-to-work state.
The ranking is one spot below the No. 11 ranking in 2023 after being 13th in 2022, 12th in 2021 and eighth in both 2019 and 2020.
Tennessee’s lowest points (zero to 50 in 15 categories) again came from its sales tax burden and debt service as a share of tax revenue. It received 45 points in sales tax burden, 39 in debt service as a share of tax revenue, 36 in recently legislated tax changes and 34 in state liability system survey.
On the other hand, Tennessee received just two points in person income tax progressivity and three in property tax burden and tax expenditure limits.
Tennessee ranked 12th in state gross domestic product, sixth in absolute domestic migration and 13th in non-farm payroll.
