Gatlinburg Property Tax Rate Cut to 6.91 Cents in New Budget

Gatlinburg passed the second of three readings of its $136.4 million fiscal year 2026-2027 budget on Tuesday, Aug. 4, and approved second and final reading of a new certified property tax rate of 6.91 cents per $100 of assessed value — down from the city's previous rate of 12.57 cents. Final reading of the budget is tentatively set for 5 p.m. Tuesday, Aug. 18.

Why did Gatlinburg's property tax rate drop by nearly half?

Because 2026 was a reappraisal year in Sevier County. When assessed values rise, Tennessee cities and counties are issued a new "certified" rate designed to collect roughly the same amount of property tax revenue as the prior year. A lower rate applied to a higher assessed value is not automatically a lower bill — your bill moves with how much your appraisal changed relative to the city average.

What is in the $136.4 million Gatlinburg budget?

No increases are projected in the city's major privilege tax streams — gross receipts, hotel/motel, amusement and restaurant taxes. On the payroll side, the budget carries a 4% cost-of-living raise plus 5% pay adjustments to starting rates for various positions. Capital improvement projects total about $1.3 million: replacing the community center HVAC, riverbank stabilization at Herbert Holt Park, Mills Park wooden bridge renovations, a second phase of street light replacement, and design and construction of an archway entrance into the city.

What other projects are being funded?

Gatlinburg's share of the Douglas Lake raw water intake upgrade — a joint project with Pigeon Forge and Sevier County — is already funded, along with Gatlinburg Golf Course work: $1.25 million in hole renovations, $1.5 million of cart path paving and $575,000 in bunker renovations.

What are Smokies homes selling for right now?

Sevier County closings jumped in July. 108 homes closed, up from 76 a year earlier, and total closed volume rose 46% to $70.1 million, per Great Smoky Mountains MLS closed-sales data. The average sale price was $648,918 and price per square foot rose 4% to $349, with homes taking a bit longer to go under contract at 81 days versus 76 last July.

What this means if you own or buy here

• Gatlinburg owners: compare your new appraised value to the 6.91-cent rate before assuming your bill fell. Reappraisal winners often pay more even when the rate drops.
• Buyers: ask for the seller's current tax bill and the post-reappraisal value. Escrow estimates built on last year's numbers can be off.
• Cabin owners: July volume of $70.1 million shows demand is real at the right price, but 81 days to contract means overpricing still costs you weeks.
• Sellers: homes sitting past 121 days close near 85% of original list. Day-one pricing is the whole game here.
• Move-up sellers: the Catch 22 is you cannot commit to the next house until this one sells, and 81 days is not a schedule. The third door is a guaranteed-sale plan that locks your sale date first,* so the purchase becomes a decision instead of a gamble.

What's happening in the Smokies this week

• Great Smoky Mountain Bronco Stampede — Aug. 14-15 · LeConte Center at Pigeon Forge
• Gatlinburg budget final reading (open to the public) — Aug. 18, 5 p.m. · Gatlinburg City Hall
• Great Smoky Mountains National Park ranger programs — throughout August · park visitor centers
• Anakeesta Bear-Varian Fall Festival — begins late August · Anakeesta, downtown Gatlinburg

Late August, after schools return, is the quietest stretch on the Parkway — the easiest window to tour cabins and neighborhoods without traffic.

Sources: The Mountain Press, Aug. 6, 2026 ("Gatlinburg passes second reading of budget") and June 23, 2026 (Sevier County certified rate); Great Smoky Mountains MLS closed sales, July 2026 and the 12 months ending July 22, 2026; Freddie Mac Primary Mortgage Market Survey, Aug. 6, 2026; Pigeon Forge and Gatlinburg August 2026 event calendars.

*Tracy and seller must agree on price and possession date