Being fundamentally limited to a current–voltage steepness of 60mV/dec, MOSFETs struggle to operate below 0.6 V. Further reduction in ${V}_{\text {DD}}$ and, consequently, power consumption can be achieved with novel devices, such as tunneling transistors (TFETs) that can overcome this limitation. TFETs, however, face challenges with low ON-current leading to slow performance. TFETs made from III-nitride heterostructures are quite promising in this regard. The lattice mismatch induces a piezoelectric polarization field in a nitride heterojunction that can boost the ON-current. However, it is shown here that the carrier thermalization at the heterointerface degrades the subthreshold characteristics. Therefore, a good design should minimize the number of confined quantum well (QW) states at the heterointerface so as not to degrade the subthreshold characteristics while maintaining the lattice mismatch induced polarization to boost the ON-current. We show here that an InAlN QW on an InGaN substrate alloy engineered TFET design is promising to fulfill these requirements. Proper engineering of the alloy mole fractions and the width of the well can eliminate (or at least minimize) the undesired thermalization effects and, at the same time, provide a lattice mismatch to induce a piezoelectric field for boosting the ON-current. We have used a suitable atomistic quantum transport model to simulate these devices. The model accounts for the different mechanisms that are involved, and captures realistic scattering thermalization effects. This model has been benchmarked in our earlier work with experimental measurements of nitride tunneling heterojunction diodes and is used here to optimize the alloy engineered nitride TFET.