Government budget and revenue in Tennessee, United States: official figures
Tennessee's state government took in $49.5 billion in fiscal year 2024, $6,833 per resident, 4th lowest of 50 states per person (all states: $9,318 per person). The total includes taxes, federal funds, charges and pension-fund investment income.
How much does the Tennessee state government spend?
The Tennessee state government spent $49.5 billion in fiscal year 2024, or $6,829 per resident, 4th lowest of 50 states (all states: $9,444). Spending was 46.4% higher than in fiscal year 2019 ($33.8 billion), before adjusting for inflation.
Source: U.S. Census Bureau · saved copyHow much debt does the Tennessee state government have?
Tennessee state government debt outstanding was $9.0 billion at the end of fiscal year 2024, $1,245 per resident, 8th lowest of 50 states (all states: $3,248). That equals 18% of one year's general revenue; in fiscal year 2019 the debt was $6.7 billion.
Source: U.S. Census Bureau · saved copyHow much federal funding does Tennessee get?
The federal government provided $20.1 billion to the Tennessee state government in fiscal year 2024, $2,766 per resident and 40.5% of its general revenue, 12th highest share of 50 states (all states: 34.2%).
Source: U.S. Census Bureau · saved copyWhat are federal funds to Tennessee spent on?
Public welfare programmes, mainly Medicaid, accounted for $12.1 billion or 60% of Tennessee's federal funds in fiscal year 2024, and education for $1.7 billion (9%).
Source: U.S. Census Bureau · saved copyWhat does the Tennessee state government spend its money on?
Direct state spending on public welfare was $2,266 per resident in fiscal year 2024, 12th lowest of 50 states (all states: $3,000); higher education took $742 per resident and highways $332.
Source: U.S. Census Bureau · saved copyHow much does Tennessee give to local governments and schools?
27.8% of Tennessee's state general spending in fiscal year 2024 ($13.8 billion) was paid to other governments, mostly local governments and school districts, 13th highest share of 50 states (all states: 27.7%).
Source: U.S. Census Bureau · saved copyHow much tax does Tennessee collect?
Tennessee collected $25.6 billion in state taxes in fiscal year 2025, $3,496 per resident, 14th lowest of 50 states (all states: $4,503). That was 5.9% more than in fiscal year 2024 ($24.2 billion); across all states collections rose 4.3%.
Source: U.S. Census Bureau · saved copyWhat taxes does Tennessee rely on?
The individual income tax raised $2.1 million (0.0% of state taxes, 7th lowest share of 50 states) in fiscal year 2025. The general sales tax raised $14.7 billion (57.5%, 5th highest share of 50 states). The largest single tax was the general sales and gross receipts tax (57.5%), followed by the corporate net income tax (10.1%).
Source: U.S. Census Bureau · saved copyDoes Tennessee have corporate, property or severance taxes?
In fiscal year 2025, in Tennessee, corporate net income tax raised $2.6 billion (10.1% of state taxes); no state property tax was collected; severance tax on oil, gas, coal and minerals raised $467,000 (0.0% of state taxes).
Source: U.S. Census Bureau · saved copyHow much money does the Tennessee state government hold in reserves?
The Tennessee state government held $74.1 billion in cash and securities at the end of fiscal year 2024, $10,218 per resident, of which $71.2 billion was in insurance trust funds such as public employee pension systems.
Source: U.S. Census Bureau · saved copyHow Tennessee compares with other states
State government revenue per person (2024)
Tennessee ranks 47 of 50, highest first. All revenue of the state government, including insurance trust income, divided by 1 July population
| Rank | Region | State government revenue per person |
|---|---|---|
| 44 | Missouri | $7,376 |
| 45 | South Dakota | $7,353 |
| 46 | New Hampshire | $7,194 |
| 47 | Tennessee | $6,833 |
| 48 | Texas | $6,646 |
| 49 | Florida | $6,107 |
| 50 | Georgia | $6,000 |
State government spending per person (2024)
Tennessee ranks 47 of 50, highest first. Total expenditure of the state government divided by 1 July population
| Rank | Region | State government spending per person |
|---|---|---|
| 44 | Missouri | $7,584 |
| 45 | Nevada | $7,536 |
| 46 | Idaho | $7,346 |
| 47 | Tennessee | $6,829 |
| 48 | Texas | $6,740 |
| 49 | Georgia | $6,310 |
| 50 | Florida | $5,583 |
State government debt per person (2024)
Tennessee ranks 43 of 50, highest first. Debt outstanding at the end of the fiscal year divided by 1 July population
| Rank | Region | State government debt per person |
|---|---|---|
| 40 | Nebraska | $1,692 |
| 41 | Utah | $1,585 |
| 42 | Georgia | $1,254 |
| 43 | Tennessee | $1,245 |
| 44 | Indiana | $1,229 |
| 45 | North Carolina | $1,188 |
| 46 | Missouri | $1,119 |
Federal funds received by the state government per person (2024)
Tennessee ranks 38 of 50, highest first. Intergovernmental revenue from the federal government
| Rank | Region | Federal funds received by the state government per person |
|---|---|---|
| 35 | North Carolina | $2,843 |
| 36 | Illinois | $2,830 |
| 37 | Washington | $2,816 |
| 38 | Tennessee | $2,766 |
| 39 | Colorado | $2,737 |
| 40 | South Carolina | $2,729 |
| 41 | Wisconsin | $2,571 |
Federal funds as a share of state general revenue (2024)
Tennessee ranks 12 of 50, highest first.
| Rank | Region | Federal funds as a share of state general revenue |
|---|---|---|
| 9 | Indiana | 41.0% |
| 10 | Oklahoma | 40.9% |
| 11 | West Virginia | 40.6% |
| 12 | Tennessee | 40.5% |
| 13 | Wyoming | 40.1% |
| 14 | New York | 39.5% |
| 15 | Ohio | 39.2% |
State tax collections per person (2025)
Tennessee ranks 37 of 50, highest first.
| Rank | Region | State tax collections per person |
|---|---|---|
| 34 | North Carolina | $3,628 |
| 35 | Nebraska | $3,614 |
| 36 | Louisiana | $3,547 |
| 37 | Tennessee | $3,496 |
| 38 | Arizona | $3,494 |
| 39 | South Carolina | $3,455 |
| 40 | Alabama | $3,403 |
Individual income tax as a share of state taxes (2025)
Tennessee ranks 44 of 50, highest first.
| Rank | Region | Individual income tax as a share of state taxes |
|---|---|---|
| 41 | North Dakota | 7.7% |
| 42 | New Hampshire | 2.7% |
| 43 | Washington | 1.4% |
| 44 | Tennessee | 0.0% |
| 45 | Texas | 0.0% |
| 46 | Florida | 0.0% |
| 47 | Nevada | 0.0% |
General sales tax as a share of state taxes (2025)
Tennessee ranks 5 of 50, highest first.
| Rank | Region | General sales tax as a share of state taxes |
|---|---|---|
| 2 | Texas | 62.8% |
| 3 | South Dakota | 61.6% |
| 4 | Washington | 59.4% |
| 5 | Tennessee | 57.5% |
| 6 | Nevada | 52.4% |
| 7 | Arizona | 50.7% |
| 8 | Mississippi | 49.4% |
State spending on public welfare per person (2024)
Tennessee ranks 39 of 50, highest first. Direct general expenditure on public welfare, mainly Medicaid
| Rank | Region | State spending on public welfare per person |
|---|---|---|
| 36 | South Carolina | $2,340 |
| 37 | Kansas | $2,309 |
| 38 | Colorado | $2,275 |
| 39 | Tennessee | $2,266 |
| 40 | South Dakota | $2,110 |
| 41 | Nevada | $2,036 |
| 42 | Utah | $1,975 |
More on Tennessee: overview · economy and jobs · health · education and schools · poverty and living standards · the United States
Sources
- U.S. Census Bureau: Annual Survey of State Government Finances: State Government Finances, U.S. and States, 2012-2024 (table GS00STATEFIN01, amounts in thousands of dollars), read 23 October 2026 · saved copy (SHA-256 72ff59b48414…)
- U.S. Census Bureau: Annual Survey of State Government Tax Collections: historical database, fiscal years to 2025 (thousands of dollars), read 23 October 2026 · saved copy (SHA-256 bdf560cd3d8f…)
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