July 7, 2025

Chattanooga Ranks 22nd in City Freedom Index

News Summary

Chattanooga has secured the 22nd spot in the 2025 City Freedom Index, ranking above Tennessee’s major cities like Nashville and Memphis. It stood out in individual liberty but faced challenges in free enterprise due to high property tax rates. The report released by the Beacon Center of Tennessee on July 1 notes the city’s financial strains and highlights overall governance performance, calling for reforms to enhance individual freedoms and economic development.

Chattanooga Ranks 22nd in 2025 City Freedom Index

Chattanooga has been ranked 22nd in the 2025 City Freedom Index, which evaluates the state of governance and liberty across Tennessee’s 30 most populous cities. Released by the Beacon Center of Tennessee on July 1, 2025, the index measures key areas such as free enterprise, property rights, individual liberty, and government costs.

Despite its overall position, Chattanooga excelled in the category of individual liberty, achieving the highest score compared to other major cities in the state. However, the city faced challenges in the areas of free enterprise and the cost of government, particularly due to having the third-highest property tax rates in Tennessee.

Key Findings

Chattanooga’s performance highlighted its strengths and weaknesses against its competitors in the index. While the city scored well in individual liberties, it was notably hindered by a lack of resources for free enterprise. This issue is further compounded by the presence of high property tax rates. Additionally, Chattanooga scored the second-lowest in terms of pension and other post-employment benefit liabilities, indicating potential financial strains in local governance.

In a statewide perspective, Chattanooga’s ranking puts it above Tennessee’s three largest cities, including Nashville, Knoxville, and Memphis, which struggled more significantly in the areas of free enterprise. La Vergne, on the other hand, was identified as the freest city in the state—boasting notable achievements in free enterprise. Farragut secured the second overall position in the index, recognized for having the lowest cost of government.

Top Performers and Challengers

The top five cities in the 2025 City Freedom Index were rounded out by Gallatin, Brentwood, and Hendersonville, each demonstrating effective local governance practices. In contrast, Bartlett, a suburb of Memphis, ranked last in the analysis. The bottom five cities included Nashville, Knoxville, Collierville, Germantown, and Bartlett, reflecting significant struggles with governmental regulations and costs.

Nashville, in particular, faced significant challenges in the free enterprise category due to high short-term rental regulations and excessive building permit fees. Similarly, Knoxville grappled with elevated government costs and restrictive property rights, which limited its overall freedom rank. Chattanooga’s performance, therefore, places it in a moderately favorable position compared to these larger urban areas.

Improvements and Future Directions

Among the cities showing significant improvement since the last index was published in 2020, Farragut, Jackson, and Oak Ridge each climbed more than five spots, indicating strategic advancements in local governance practices and policies. The City Freedom Index, updated every five years, assesses over 70 different local policies to paint a comprehensive picture of how governments operate in various regions of Tennessee.

This analysis emphasizes the diversity of policies and governance approaches across Tennessee, where cities like Chattanooga can excel in certain areas while facing struggles in others. The results from the 2025 City Freedom Index will provide a reference point for local leaders to consider adjustments aimed at enhancing individual freedoms and promoting economic development in the years ahead.

Deeper Dive: News & Info About This Topic

HERE Resources

La Vergne Crowned Tennessee’s Freest City
Paramount Settles Major Lawsuit with Trump
La Vergne Tops Tennessee’s City Freedom Index
Chattanooga Plans Festive Independence Day Celebrations
Chattanooga Welcomes Dr. Reginald Smith as New Urban League Leader
University of Tennessee at Chattanooga Celebrates Commencement
Major Airstrikes Target Iran’s Nuclear Facilities
Israel Launches Major Offensive Against Iran
Chattanooga TECH Academy Empowers Future Engineers
Tennessee’s Business Landscape Thrives with Fortune 500 Companies

Additional Resources

Author: STAFF HERE CHATTANOOGA WRITER

The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.

ADD MORE INFORMATION OR CONTRIBUTE TO OUR ARTICLE CLICK HERE!

STAFF HERE CHATTANOOGA WRITER

Stay Connected

More Updates

Would You Like To Add Your Business?

Submit