Property Tax Guide
Property Tax in Tennessee (2026): Rates, Exemptions, and Real Numbers
Tennessee's effective property tax rate is 0.46% — one of the lowest rates in the country (#46 nationally). On the state median of $313,544, that's $1,442/year or $120/month. Rates vary sharply by county: from 0.30% in Pickett County to 0.72% in Shelby County (Memphis).
What this means for what you can afford
Tennessee's property tax adds $120/month to your housing payment on the state median home — money a lender's pre-approval number often doesn't make obvious.
New to this? Quick definitions
- Effective tax rate —
- what you actually pay in property tax as a % of your home's value each year, after any local exemptions.
- Assessed value vs. market value —
- market value is what a buyer would pay; assessed value is the number your county uses to calculate your tax bill, which may lag market value.
- Mill rate —
- another way some counties express the tax rate — dollars owed per $1,000 of assessed value. It converts to the same effective rate.
- Homestead exemption —
- a discount some states offer on the assessed value of your primary residence, which lowers your tax bill. You usually have to apply for it.
- Escrow —
- after you close, an ongoing account your lender manages that collects a slice of your property tax (and insurance) with every mortgage payment, then pays the county for you.
- Reassessment —
- when the county updates your home's assessed value — often triggered by a sale, renovation, or a routine cycle — which can raise (or lower) your tax bill.
Tennessee Property Tax Rates by County
Highest and lowest effective rates within Tennessee
Highest rate
0.72%
Shelby County (Memphis)
$2,258/yr on median-priced home
Lowest rate
0.30%
Pickett County
$941/yr on median-priced home
County rate spread
Mistakes first-time buyers make
- Assuming the seller's current tax bill is what you'll pay — reassessment at your purchase price often raises it.
- Not checking whether the county offers a homestead exemption, then forgetting to apply for it after closing.
- Missing the appeal deadline window — most counties only give you 30-90 days after your assessment notice arrives.
- Comparing homes across counties using the statewide average rate instead of each county's actual rate.
Pro tips
- Ask your agent for the exact county effective tax rate before you write an offer — not the statewide average.
- Calculate what your bill would be after reassessment at your actual purchase price, not the seller's old assessed value.
- Mark your calendar for the appeal deadline the day you get your first assessment notice — it's easy to miss.
- If Tennessee offers a homestead exemption, apply for it right after closing — it usually isn't automatic.
Property Tax Calculator — Tennessee
Pre-loaded with Tennessee's 0.46% effective rate and $313,544 median price
Rate source: Tennessee Tax Foundation data
Monthly escrow
$120/mo
Estimate based on effective rate. Actual bills vary by county and assessment.
Full Calculator →Property Tax by City in Tennessee
Annual and monthly property tax by city, based on local median prices and the statewide effective rate. “% of P&I” shows how big the tax bill is relative to the principal & interest (P&I) portion of your mortgage payment.
Estimated property tax — Tennessee cities
| City | Median Price | Annual Tax | Monthly | % of P&I |
|---|---|---|---|---|
| Nashville | $438,000 | $2,015 | $168/mo | 8% |
| Brentwood | $870,000 | $4,002 | $334/mo | 8% |
| Knoxville | $325,000 | $1,495 | $125/mo | 8% |
| Memphis | $162,000 | $745 | $62/mo | 8% |
| Chattanooga | $305,000 | $1,403 | $117/mo | 8% |
| Source: Tax Foundation Property Taxes by State 2024 — estimated at 0.46% effective rate | ||||
Tennessee Homestead Exemption
Tennessee offers a homestead exemption
Property Tax Relief for elderly (65+) and disabled homeowners with income below $31,600: state reimburses a portion of county taxes. Tax Freeze program available in many counties — freezes taxable value for qualifying seniors. Assessment ratio for residential property is 25% of appraised value.
Apply after purchase through your county assessor. Deadlines vary — check the link below.
How Tennessee Assesses Property Values
Assessment cycle: Reappraisal every 4–6 years depending on county (4-year cycle for most urban counties; 6-year for rural). Residential property assessed at 25% of appraised value.
Assessment cycle
Tennessee reassesses property on a reappraisal every 4–6 years depending on county (4-year cycle for most urban counties; 6-year for rural). residential property assessed at 25% of appraised value. schedule. Your assessed value changes on this cycle, so your tax bill can increase even if you haven't made improvements.
Assessed value vs. market value
Some states assess at a fraction of market value. Tennessee's effective rate of 0.46% is calculated on market value. If you paid $313,544, your starting assessed value is approximately that amount.
How to appeal
If your assessment is higher than comparable sales in your area, you can appeal. File with your county Board of Assessment Appeals within the deadline on your notice (typically 30-90 days). Bring 3-5 recent comparable sales ("comps") pulled from Zillow or your county recorder. The process is free.
What drives reassessment
Triggers include your purchase price being recorded at county, permitted renovation work, and periodic mass appraisals. New construction is always assessed on completion.
Property Tax's Impact on Your True Monthly Cost
On a $313,544 home in Tennessee
| Component | Monthly |
|---|---|
| Principal & Interest | $1,567 |
| Property Tax (0.46%) | $120 |
| Homeowners Insurance | $197 |
| Maintenance Reserve | $392 |
| Utilities | $210 |
| True monthly total | $2,486 |
Property tax represents 5% of the true monthly cost in Tennessee.
Where your money goes each month
Mortgage Calculator Including Property Tax — Tennessee
See your full PITI (principal, interest, taxes, insurance) payment
Mortgage Estimator
Tennessee rates pre-loaded
Monthly Payment
$2,030
estimated all-in payment (PITI)
Tax and insurance estimates use national averages. For Tennessee-specific numbers, see the full breakdown below.
Excludes HOA fees. Rates and costs are estimates; actual costs vary.
Full Calculator →How Tennessee's Property Tax Affects Affordability
$120/month in property tax reduces the home price you can afford. Use the affordability calculator to see the real impact.
Mortgage Affordability Calculator
See what home price you can actually afford after factoring in Tennessee's $120/month property tax burden.
Open Calculator →Property Tax After Refinancing in Tennessee
Refinancing changes your P&I but not your property tax. If your home was reassessed at a higher value, your tax bill increases regardless of your rate.
Mortgage Refinance Calculator
See if refinancing saves money after accounting for Tennessee's property taxes — pre-loaded with the $313,544 median home value at 6.4%.
Open Calculator →Frequently Asked Questions
- What is the property tax rate in Tennessee?
- Tennessee's effective property tax rate is 0.46%, ranking #46 nationally. The median annual property tax bill is $1,442 ($120/month). Rates range from 0.30% in Pickett County to 0.72% in Shelby County (Memphis). Source: Tax Foundation Property Taxes by State 2024.
- Does Tennessee have a homestead exemption?
- Yes — Tennessee offers a homestead exemption for primary residences. Property Tax Relief for elderly (65+) and disabled homeowners with income below $31,600: state reimburses a portion of county taxes. Tax Freeze program available in many counties — freezes taxable value for qualifying seniors. Assessment ratio for residential property is 25% of appraised value.. Apply through your county assessor's office after purchasing your home.
- How often is property reassessed in Tennessee?
- Tennessee reassesses property on a reappraisal every 4–6 years depending on county (4-year cycle for most urban counties; 6-year for rural). residential property assessed at 25% of appraised value. basis. When your property is reassessed, your tax bill changes based on the new assessed value multiplied by the applicable rate. If you believe your assessment is too high, you can appeal — most counties allow 30-90 days after receiving your assessment notice.
- How is property tax calculated in Tennessee?
- Property tax = Assessed Value × Mill Rate (some counties express the rate this way — dollars owed per $1,000 of assessed value — instead of a percentage). In Tennessee, the effective rate is 0.46% of market value, which is the simplest way to compare rates across counties. On a $313,544 home: $313,544 × 0.46% = $1,442/year. Assessments may use a fraction of market value — the effective rate accounts for this.
- Can I appeal my property tax assessment in Tennessee?
- Yes. If your assessed value is higher than comparable sales in your area, you can file an appeal with your county assessment board. Steps: (1) Get your assessment notice, (2) Research comparable recent sales, (3) File an appeal by the deadline (typically 30-90 days from assessment notice). Studies show 20-40% of appeals result in a reduction. The process is free and you represent yourself — no attorney required.
- Are property taxes included in my mortgage payment in Tennessee?
- Most lenders require an escrow account that collects $120/month ($1,442/year ÷ 12) along with your mortgage payment, then pays the county on your behalf. If your loan-to-value is below 80%, you may be able to opt out of escrow and pay taxes directly. Note: if your assessed value rises, your escrow payment adjusts and your total monthly cost increases.
- What Tennessee counties have the highest and lowest property taxes?
- Tennessee's highest effective rate is in Shelby County (Memphis) at 0.72%. The lowest is Pickett County at 0.30%. That's a 0.42% spread — on a $313,544 home, the difference is $1,317/year.
Related Calculators
Property Tax Calculator
Estimate annual and monthly property tax in Tennessee at any home price
Mortgage Calculator
Full PITI payment on $313,544 at 6.4%
Affordability Calculator
How much home can you afford with $120/mo in taxes?
Refinance Calculator
See if refinancing saves money after accounting for property taxes
Mortgage Payments by Price
Full PITI for 8 home prices in Tennessee, from $200K to $750K
What to do with this number
Now that you know Tennessee's effective rate is 0.46% — here's how to use it.
Rate feels high in your county?
Compare it to the county rate spread above, or look at nearby counties before deciding where to buy.
Want the full cost picture?
See the true cost of owning a home in Tennessee — mortgage, tax, insurance, and maintenance combined.
Assessment seems too high?
See “How to appeal” above — most appeals are free, and 20-40% result in a reduction.