RESEARCH

Today, Beacon released a new City Freedom Index for the first time in five years, ranking Tennessee’s 30 largest cities based on how local policies impact Tennesseans’ everyday life, from taxes and property rights to business regulations and individual liberty.

Each year, thousands of people move to Tennessee for various reasons, with many drawn to the state’s policies. And while the state you live in has a big impact on your life, so does the city. That’s why in 2020, Beacon released its first-ever City Freedom Index to shed light on the ways taxpayers are impacted by local government policies. Five years and many changed local policies later, the time has come for an update.

La Vergne proudly remained in the top spot in the City Freedom Index, showcasing the highest free enterprise ranking and consistently strong performance across the board. Farragut was one of the most-improved in this year’s index, jumping seven places to #2 since 2020.  Gallatin, Brentwood, and Hendersonville round out the top five freest cities.

Bartlett ranked last overall, while Germantown and Collierville also struggled in the bottom five along with two of Tennessee’s major cities, Nashville and Knoxville, struggling with business regulations, high fees, and rising costs of government. Since the data for the Index was compiled, Nashville and Bartlett have already passed property tax increases for next year, while multiple other cities in Tennessee have announced that they are considering increases.

Along with Farragut, both Jackson and Oak Ridge improved by more than five spots this year, placing them at the top of the “Most Improved” list.

As a composite index, cities were not ranked based on whether they were “free” or “not free,” but on how they compared relative to each other. Furthermore, as an index ranking cities, policies controlled by counties where a city is located were excluded.

You can find a detailed explanation of the methodology and full results here.