Startup Costs in Tennessee
Tennessee charges no state income tax on wages or salary, which is a significant advantage for business owners. Nashville is one of the hottest markets in the country for food, fitness, and service businesses, though rapid growth has pushed commercial rents higher. Memphis and Chattanooga offer much lower costs with solid consumer markets. The state's 7% sales tax rate is among the highest.
Tennessee (TN) by the Numbers
$300
$300
None
7.00%
$7.25/hr
0.91x
0.90x
0.82x
What Tennessee's Numbers Mean for Founders
- Tennessee has no state income tax, which lowers your take-home tax burden compared to most states.
- Labor costs are 10% below the national average, a margin advantage for service and retail operations.
- Commercial rent is 18% below the national average, which gives you more square footage for your budget.
- Minimum wage is the federal floor of $7.25/hour, keeping entry-level payroll low.
Tennessee Cost Guides (10)
Bakery
How much does it cost to start a bakery in Tennessee? Expect $13,500-$221,000. Tennessee-specific co
Cleaning Business
Tennessee cleaning business startup costs: $1,300-$13,500. Complete guide to Tennessee licensing, hi
Coffee Shop
How much does it cost to start a coffee shop in Tennessee? Expect $22,000-$265,000. Tennessee-specif
Dog Grooming Business
How much does it cost to start a dog grooming business in Tennessee? Expect $4,400-$88,500. Tennesse
Food Truck
How much does it cost to start a food truck in Tennessee? Expect $25,000-$101,000. Tennessee-specifi
Gym
How much does it cost to start a gym in Tennessee? Expect $44,000-$442,000. Tennessee-specific costs
Landscaping Business
Tennessee landscaping business startup costs: $4,400-$44,000. Complete guide to Tennessee licensing,
Personal Training Studio
Tennessee personal training studio startup costs: $17,500-$88,500. Complete guide to Tennessee licen
Pressure Washing Business
How much does it cost to start a pressure washing business in Tennessee? Expect $2,700-$17,500. Tenn
Restaurant
Starting a restaurant in Tennessee costs $154,500-$663,000. Full Tennessee cost breakdown with city