Workers Comp Rates in Tennessee (TN)
The average workers' compensation rate in Tennessee is $0.98 per $100 of payroll , effective as of 2025-01-01. This is $0.21 (17.6%) below the national average of $1.19 per $100. Tennessee has a competitive insurance market where employers can purchase workers' comp from private insurers. Tennessee requires workers' compensation for employers with 5 or more employees (1 for construction/mining). The state has competitive rates below the national average.
Workers Comp Requirements in Tennessee
Workers Comp Rates by City in Tennessee
The table below shows average workers' compensation rates for 5 cities in Tennessee, sorted by rate from highest to lowest. Rates range from $0.94/$100 in Murfreesboro to $1.02/$100 in Memphis. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Memphis | $1.02 | $2,550 | +$0.04 | -$0.17 | Logistics hub |
| Nashville | $1.00 | $2,500 | +$0.02 | -$0.19 | State capital |
| Chattanooga | $0.96 | $2,400 | -$0.02 | -$0.23 | -- |
| Knoxville | $0.95 | $2,375 | -$0.03 | -$0.24 | -- |
| Murfreesboro | $0.94 | $2,350 | -$0.04 | -$0.25 | -- |
How Tennessee Compares to Other States
Below is a comparison of Tennessee with five states that have similar workers' compensation rates. This comparison helps illustrate where Tennessee stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Tennessee (TN) | $0.98 | Competitive | 5+ | 7 days | $2,450 |
| Kentucky (KY) | $0.98 | Competitive | 1+ | 7 days | $2,450 |
| New Mexico (NM) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| North Carolina (NC) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| Idaho (ID) | $0.95 | Competitive | 1+ | 5 days | $2,375 |
| South Dakota (SD) | $0.95 | Competitive | 1+ | 7 days | $2,375 |
Workers Comp Cost Examples for Tennessee
The following table shows estimated annual workers' compensation costs for various payroll sizes in Tennessee using the state average rate of $0.98 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $490 | $41 |
| $100,000 | $980 | $82 |
| $250,000 | $2,450 | $204 |
| $500,000 | $4,900 | $408 |
| $1,000,000 | $9,800 | $817 |
| $2,500,000 | $24,500 | $2,042 |
Frequently Asked Questions About Workers Comp in Tennessee
How much does workers comp cost in Tennessee?
The average workers' compensation rate in Tennessee is $0.98 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $2,450 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in Tennessee?
Yes. Tennessee requires workers' compensation for employers with 5 or more employees. The following are exempt: Agricultural workers, domestic workers, employers with fewer than 5 employees. Penalties for noncompliance include: Class A misdemeanor, up to $500 fine per day, personal liability.
Where can I buy workers comp in Tennessee?
Tennessee has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in Tennessee?
The waiting period in Tennessee is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in Tennessee is $1,108.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Tennessee, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.