The economy of Tarancón has traditionally been centered around agriculture, thanks to its fertile lands and strategic location in the La Mancha region. Vineyards producing famous La Mancha wines, olive groves, and wheat fields dominate the rural landscape around the city. Today, agriculture remains an important economic driver, with products like wine, olive oil, and Manchego cheese being some of the most well-known exports from the area.
In recent years, the city has seen growth in manufacturing and logistics, with several industrial parks that host businesses in sectors such as food processing and distribution. The local economy is also supported by its growing tourism industry, as the city gains recognition for its historical charm and proximity to major Spanish cities. Event hosting is becoming a key component of the local economy, as Tarancón is increasingly seen as a destination for conferences, weddings, and cultural festivals.
Local craftsmanship, especially in ceramics and textiles, continues to be an important economic activity. Visitors to the city often seek out these unique products as souvenirs, supporting local artisans and keeping these traditional industries alive.