Tennessee does have a property tax, but the state itself does not collect it
Tennessee has a property tax, but it works differently than in many other states. The state government does not run a statewide property tax. Instead, each county and city in Tennessee sets its own property tax rate and collects the money locally. This means what you pay depends entirely on where your property sits — a house in one county can have a very different tax bill than an identical house across the county line.
Property tax in Tennessee is based on the assessed value of real estate. The county assessor determines that value, and then the county applies its tax rate to it. Cities may add their own tax on top of the county rate. You receive one bill that combines both, but they are separate taxes collected by separate governments.
Tennessee does not tax the value of personal property — things like cars, boats, or household goods — the way some states do. You will not receive a property tax bill for those items.
Key Takeaways
- Tennessee counties and cities each set their own property tax rates, so the amount you owe depends on your location within the state.
- Property tax is calculated by multiplying your property's assessed value by the local tax rate, which is expressed as a percentage or per $100 of value.
- You receive one combined bill from your county that includes both county and city taxes if your property is within city limits.
- The county assessor reassesses property values periodically, and you can appeal an assessment you believe is incorrect.
How county and city tax rates work together
When you own property in Tennessee, you are subject to both a county tax rate and possibly a city tax rate. If your property is outside city limits, you pay only the county rate. If it is inside a city, you pay both. The county tax assessor's office sends you a single bill that shows both amounts combined.
Tax rates vary widely across the state. Some counties have rates around 0.5 percent of assessed value, while others are closer to 1 percent or higher. Cities add their own rates on top. You can find your specific county and city rates by contacting your county assessor's office or checking the county website — most post their current rates publicly.
The rate you pay does not change year to year unless the county or city votes to change it. What does change is the assessed value of your property, which the assessor reviews periodically. If your home's assessed value goes up, your tax bill goes up even if the rate stays the same.
What gets assessed and what does not
Real property — land and buildings — is what Tennessee taxes. If you own a house, a rental property, commercial building, or raw land, that property has an assessed value and is subject to tax. The assessor looks at comparable sales, the condition of the building, and the size and location of the property to determine its value.
Personal property is generally not taxed in Tennessee. Your car, truck, boat, furniture, and equipment do not show up on a property tax bill. Some counties have historically taxed business personal property like machinery or inventory, but this has been phased out in most places. Check with your county assessor if you own a business and want to know whether any of your equipment is taxed.
Agricultural land and certain other property types may may have access to for lower assessment rates. If you own a farm or forest land used for production, you may be assessed at a lower value than residential or commercial property. You will need to file for this classification with your assessor.
How the assessment process works
The county assessor's office determines the value of every property in the county. Assessors use several methods: they look at recent sales of similar properties, they may physically inspect your home, and they use computer models that factor in location, size, age, and condition. You do not have to let an assessor inside your home, but they can estimate value from the outside and from public records.
Assessments happen on a schedule set by each county. Some counties reassess every year, others every four years or on some other cycle. You will receive notice when your property is reassessed. The notice tells you the new assessed value and explains how to appeal if you disagree.
If you believe your assessment is too high, you can file an appeal with your county assessor. The process and important date vary by county, but you typically have 30 to 45 days from the notice date to file. You may need to provide evidence like a recent appraisal, comparable sales data, or documentation of property damage or defects. Some counties hold hearings; others review appeals on paper.
Homestead exemptions and other relief programs
Tennessee offers a homestead exemption for owner-occupied homes. This exemption reduces the assessed value of your primary residence, which lowers your tax bill. The exemption amount varies by county — some offer a flat dollar amount, others a percentage reduction. You must own the home and live in it as your primary residence to may have access to.
To claim the homestead exemption, you file a form with your county assessor. You typically need to do this only once, though some counties require you to renew it periodically. The form asks you to certify that you own the property and that it is your primary home. Bring proof of ownership (deed or mortgage statement) and proof of residency (utility bill or driver's license).
Tennessee also has exemptions for disabled veterans, surviving spouses of veterans, and certain other groups. may be able to access and the amount of the exemption vary. Contact your county assessor's office to learn whether you may be may be able to access for any of these programs.
When your property tax bill arrives and what to expect
Property tax bills in Tennessee are typically sent out once or twice per year, depending on the county. Most counties bill annually, usually in the fall or winter. Some split the bill into two payments. The bill shows the assessed value, the tax rate, and the amount owed. It also lists the due date and any penalties for late payment.
If you have a mortgage, your lender may require you to pay property tax through an escrow account. You include the estimated annual tax in your monthly mortgage payment, and the lender pays the bill on your behalf. If you own the property outright, you pay the tax bill directly to the county.
Property taxes are due on the date listed on your bill. If you pay late, the county adds penalties and interest. The exact penalty varies by county but is typically a percentage of the unpaid amount. If you cannot pay by the due date, contact your county assessor's office to ask about payment plans or hardship options.
Frequently Asked Questions
Can I deduct Tennessee property taxes on my federal income tax return?
Yes, if you itemize deductions on your federal return. Property taxes are deductible as state and local taxes (SALT), though there is a federal cap of $10,000 per year on the total of state, local, and property taxes combined. Consult a tax professional about your specific situation.
What happens if I do not pay my property tax bill?
The county will add penalties and interest to your bill. If the bill remains unpaid for several years, the county may place a lien on your property or sell it at a tax sale to recover the money owed. Contact your county assessor when ready if you are having trouble paying.
Do I pay property tax on a mobile home in Tennessee?
Mobile homes are taxed differently depending on whether they are on land you own or in a mobile home park. If you own the land, the mobile home and land are taxed as real property. If you rent the lot, the mobile home may be taxed as personal property or not taxed at all, depending on your county. Check with your county assessor.
How often does the county reassess property values?
The reassessment schedule varies by county. Some reassess every year, others every two, four, or six years. Your county assessor's office can tell you when your property was last assessed and when the next assessment is scheduled.
Can I appeal my property tax assessment more than once?
Yes. If your property is reassessed and you disagree with the new value, you can appeal again. Each time your property is reassessed, you have the right to file an appeal within the important date set by your county.