State government

Tennessee's money: where it comes from and where it goes

In the latest recorded fiscal year (ended June 30, 2024), Tennessee took in $49.5 billion and spent $49.5 billion.

Latest recorded year: ended June 30, 2024Comes fromGoes to

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Where it comes from

State taxes49%Federal tax money41%Fees for services (college tuition, university housing and dining)5.8%Fines and other4.8%Local tax money0.2%

What stands out

28%

of Tennessee's money comes from sales tax.A typical state government gets 14%.

State taxes49%

Sales tax
28%$14.1 billion
Other taxes
14%$6.94 billion
What's in other taxesCorporation licenses; insurance premium taxes and 17 more
  • Corporation licenses$1.50 billion
  • Insurance premium taxes$1.46 billion
  • Motor fuel taxes$1.27 billion
  • Other selective sales taxes$723 million
  • Occupation and business licenses$541 million
  • Motor vehicle licenses$405 million
  • Real estate and stock transfer taxes$356 million
  • Alcoholic beverage taxes$327 million
  • Tobacco taxes$196 million
  • Hunting and fishing licenses$51.5 million
  • Driver's licenses$46.8 million
  • Other taxes not classified elsewhere$35.6 million
  • Public utility taxes$10.3 million
  • Other licenses$9.6 million
  • Public utility licenses$6.5 million
  • Alcoholic beverage licenses$1.8 million
  • Severance taxes$529 thousand
  • Amusement licenses$432 thousand
  • Estate and gift taxes$7 thousand

Amounts are by Census tax category.

Business income tax
6.2%$3.05 billion
Individual income tax
<0.1%$2.1 million

Fees for services5.8%

Fees for services
5.8%$2.86 billion
What's in fees for servicesCollege tuition; other service charges and 10 more
  • College tuition$1.38 billion
  • Other service charges$719 million
  • University housing and dining$505 million
  • Other education charges$136 million
  • Parks and recreation$67.0 million
  • Parks, land and natural resources$28.8 million
  • Hospital bills$19.2 million
  • Garbage collection$2.1 million
  • Sewer$530 thousand
  • Road charges$118 thousand
  • Tolls on roads and bridges$45 thousand
  • Housing$9 thousand

Amounts are by Census type of charge.

Federal tax money41%

Grants from Washington, paid for by the federal taxes residents also pay.

From the federal government
41%$20.1 billion

Local tax money0.2%

Money passed on by the county or other local governments.

From local governments
0.2%$117 million

Fines and other4.8%

Interest, rents and other
4.7%$2.32 billion
Fines
<0.1%$38.4 million

Where it goes

Social services33%Sent to local governments28%Schools and colleges14%Health and hospitals5.4%Roads, transit and parking5.0%All other spending14%

What stands out

28%

of Tennessee's spending goes to local governments.A typical state government spends 24%.

Spending by category100%

Social services
33%$16.5 billion
What's in social servicesOther public welfare; unemployment and social insurance offices and 1 more
  • Other public welfare$16.4 billion
  • Unemployment and social insurance offices$89.2 million
  • Veterans' services$12.2 million
Sent to local governments
28%$13.8 billion
What's in sent to local governmentsSent to local governments: elementary and secondary schools; sent to local governments: general support and 21 more
  • Sent to local governments: elementary and secondary schools$8.60 billion
  • Sent to local governments: general support$2.46 billion
  • Sent to local governments: other public welfare$904 million
  • Sent to local governments: other and not broken out$331 million
  • Sent to local governments: roads and highways$327 million
  • Sent to local governments: prisons and jails$270 million
  • Sent to school districts$266 million
  • Sent to local governments: natural resources, farming and conservation$145 million
  • Sent to local governments: public health$131 million
  • Sent to local governments: police$94.8 million
  • Sent to local governments: courts and legal services$80.5 million
  • Sent to local governments: housing and community development$51.2 million
  • Sent to local governments: hospitals$44.7 million
  • Sent to local governments: inspections and regulation$31.7 million
  • Sent to local governments: airports$23.5 million
  • Sent to local governments: parks and recreation$17.3 million
  • Sent to local governments: finance, tax collection and budgeting$5.9 million
  • Sent to local governments: other education$3.0 million
  • Sent to local governments: libraries$2.2 million
  • Sent to local governments: garbage and solid waste$956 thousand
  • Sent to local governments: probation, parole and other corrections$856 thousand
  • Sent to local governments: central staff services (personnel, purchasing, technology)$225 thousand
  • Sent to local governments: other government administration$20 thousand
Schools and colleges
14%$7.17 billion
What's in schools and collegesColleges and universities; scholarships and other education subsidies and 3 more
  • Colleges and universities$4.88 billion
  • Scholarships and other education subsidies$1.15 billion
  • Other education$547 million
  • College housing, dining and bookstores$499 million
  • Elementary and secondary schools$90.3 million
Health and hospitals
5.4%$2.69 billion
What's in health and hospitalsPublic health and hospitals
  • Public health$2.02 billion
  • Hospitals$675 million
Roads, transit and parking
5.0%$2.47 billion
What's in roads, transit and parkingRoads and highways and airports
  • Roads and highways$2.41 billion
  • Airports$60.6 million
Running the government and other costs
5.0%$2.46 billion
What's in running the government and other costsFinance, tax collection and budgeting; other and not broken out and 3 more
  • Finance, tax collection and budgeting$1.06 billion
  • Other and not broken out$918 million
  • Government buildings$323 million
  • Central staff services (personnel, purchasing, technology)$128 million
  • Other government administration$28.8 million
Police, fire, courts and jails
4.6%$2.26 billion
What's in police, fire, courts and jailsPrisons and jails; courts and legal services and 3 more
  • Prisons and jails$866 million
  • Courts and legal services$550 million
  • Police$496 million
  • Probation, parole and other corrections$177 million
  • Inspections and regulation$174 million
Environment and natural resources
1.5%$738 million
What's in environment and natural resourcesNatural resources, farming and conservation
  • Natural resources, farming and conservation$738 million
Interest on debt
1.4%$698 million
Housing and community development
0.9%$471 million
Parks, recreation and libraries
0.4%$220 million
What's in parks, recreation and librariesParks and recreation and libraries
  • Parks and recreation$207 million
  • Libraries$13.0 million
Water, sewer, trash and utilities
<0.1%$47.8 million
What's in water, sewer, trash and utilitiesGarbage and solid waste; sewer systems and 1 more
  • Garbage and solid waste$45.2 million
  • Sewer systems$1.4 million
  • Water supply$1.1 million
Sources and moreWhere these numbers come from and what they cover

State of Tennessee. U.S. Census Bureau, 2024 Annual Survey of State and Local Government Finances, individual unit file, fiscal year ended June 30, 2024.

What this covers. The money of State of Tennessee itself. Other governments that serve the same area (the city, county, school district and state) are separate and not included. Borrowing, transfers between a government's own funds, and pension trust funds are not counted as revenue.

Counties92 counties, A to Z
Cities and towns343 cities, towns and townships, A to Z
School districts14 school districts, A to Z