Trucking Costs in Tennessee

Operating cost analysis for Tennessee — no income tax with massive freight markets.

Total Cost Per Mile Analysis

Tennessee's diesel tax is 27.0 cents per gallon plus 24.4 federal for 51.4 cents total. Diesel prices average $3.50-$3.80/gallon — below average. No state income tax saves $3,000-$12,000+ annually. Insurance runs $9,500-$17,000. Shop labor $80-$115/hr. An owner-operator with a paid-off truck expects $1.40-$1.78/mi. With payments: $1.65-$2.08. Dry van rates average $2.25/mi, flatbed $2.75/mi. Memphis and Nashville are top-20 US freight hubs with exceptional load availability. No toll roads on the interstate system save additional costs. Owner-operators grossing $185,000-$235,000 can net $55,000-$85,000 — tax-free at the state level. Tennessee ranks among the top 5 states for owner-operator profitability.

FAQs — Tennessee Trucking Costs

Yes — top 5. No income tax, two top-20 freight hubs (Memphis, Nashville), below-average fuel costs, no toll roads, moderate insurance, and affordable cost of living. Memphis is the world's largest cargo airport city. Owner-operators can net $55,000-$85,000 tax-free at the state level.

Tennessee's diesel tax is 27.0 cents per gallon. Combined with federal, total is 51.4 cents. Diesel prices average $3.50-$3.80/gallon — below the national average. No toll roads. The no-income-tax advantage makes Tennessee one of the most cost-effective trucking states.