Tennessee Property Tax Rates by County 2026: What Homeowners Actually Pay

If you're buying, selling, or simply owning a home in Tennessee, understanding property taxes isn't optional — it's essential. Tennessee has no state income tax (the Hall Tax on investment income was fully phased out in 2021), which means local property taxes carry a bigger share of the funding burden for schools, roads, and services. And unlike states with a single statewide rate, Tennessee's property taxes are set county by county and city by city, creating enormous variation across the state.

Tracy King, CEO of Your Home Sold Guaranteed Realty — Kings of Real Estate, puts it simply: "I've worked with buyers who saved $3,000 a year in property taxes just by choosing the right side of a county line. In Tennessee, where you buy matters as much as what you buy."

Here's the complete breakdown for 2026.

How Tennessee Property Taxes Work: The Basics

Tennessee doesn't tax the full market value of your home. The state uses an assessed value system:

• Residential property is assessed at 25% of its appraised (market) value
• Commercial/industrial property is assessed at 40%
• Farm property is assessed at 25% based on current use value (often much lower than market value)

So if your home is appraised at $400,000, the assessed value is $100,000. Your tax bill is then calculated as:

Assessed Value ÷ 100 × Tax Rate = Annual Tax

If your county rate is $2.00 per $100: $100,000 ÷ 100 × $2.00 = $2,000 per year.

This 25% assessment ratio is one reason Tennessee's effective property tax rates are lower than many states despite seemingly high per-$100 rates. The national average effective rate is about 1.1%; Tennessee's average sits around 0.56% — ranking it among the 10 lowest in the country.

Property Tax Rates Across Major Tennessee Counties (2025–2026)

Rates change periodically as counties adjust budgets, but here's what homeowners in Tennessee's most active real estate markets are paying right now. All rates are per $100 of assessed value:

Nashville Metro Area

• Davidson County (Nashville): $3.254 (county rate — includes Metro Nashville consolidated government). On a $500K home: assessed $125,000 → ~$4,068/year.
• Williamson County: $1.30 (county only). Cities add their own: Franklin $0.2960 (+FSSD $0.5873 in district), Brentwood $0.19, Nolensville $0.34, Spring Hill $0.7390, Thompson's Station $0.103.
• Rutherford County (Murfreesboro): ~$1.7896 county rate. Murfreesboro adds $0.9407 inside city for a combined ~$2.73.
• Sumner County (Hendersonville/Gallatin): ~$1.93 county rate. City rates additional within municipalities.
• Wilson County (Mt. Juliet/Lebanon): ~$2.07 county rate.

Knoxville Metro Area

• Knox County (Knoxville): ~$2.12 county rate. Inside Knoxville city limits add $0.7382 for a combined ~$2.86. On a $320K home: assessed $80,000 → ~$2,288/year (in city).
• Blount County (Maryville/Alcoa): ~$2.27 county rate. Maryville adds $0.66.
• Anderson County (Oak Ridge/Clinton): ~$2.46 county rate. Oak Ridge city adds $0.63.
• Loudon County (Loudon/Lenoir City): ~$1.54 county rate. Lenoir City adds $0.85.

Smoky Mountains / Sevier County

• Sevier County: ~$1.58 county rate. Sevierville adds ~$0.47, Pigeon Forge adds ~$0.37, Gatlinburg adds ~$0.33. Tourism revenue helps keep residential rates lower than most urban counties.

Tri-Cities

• Washington County (Johnson City): ~$1.75 county rate. Johnson City adds ~$0.62.
• Sullivan County (Kingsport/Bristol): ~$2.13 county rate. Kingsport adds ~$0.61.
• Carter County (Elizabethton): ~$2.59 county rate.

Chattanooga Area

• Hamilton County (Chattanooga): ~$2.2505 county rate. Inside Chattanooga city limits: combined ~$3.14. On a $295K home: assessed $73,750 → ~$2,316/year (in city).

Property Tax Exemptions and Relief Programs

Tennessee offers several programs that can significantly reduce your tax burden:

Tax Relief for Elderly Homeowners (Age 65+)

Tennessee provides property tax relief for homeowners age 65 and older with a total annual income at or below income limits set by the state (currently around $31,600 for a single applicant). The state reimburses the taxes paid on the first $30,000 of full market value. This won't eliminate your tax bill, but for qualifying seniors on fixed incomes, the savings are meaningful — typically $200–$600 per year depending on your county rate.

Disabled Homeowner Tax Relief

Homeowners who are totally and permanently disabled (as determined by Social Security or the VA) qualify for the same relief as the elderly program, regardless of age. The same income limits apply.

Disabled Veteran Tax Relief

Tennessee exempts the first $175,000 of market value from property taxes for veterans with a 100% permanent and total service-connected disability. At a $2.00/100 rate, that's a savings of approximately $875/year. Surviving spouses may also qualify.

Greenbelt (Agricultural/Forest Land)

Properties used for farming, forestry, or open space can be assessed based on current-use value rather than market value. A 10-acre farm near Nashville might have a market value of $2 million but an agricultural-use assessed value of $50,000. The difference in tax is dramatic. However, if you take the land out of qualifying use, you'll owe rollback taxes for the prior 3 years.

Property Tax Reappraisals: Why Your Bill Can Spike

Tennessee counties reappraise property values on a cycle — most counties do it every 4–6 years, though some urban counties move to 4-year cycles. When a reappraisal happens, your assessed value gets updated to reflect current market conditions. In a rapidly appreciating market like the Nashville metro (where home values jumped 30–50% between 2019 and 2024), a reappraisal can dramatically increase your assessed value — and your tax bill — even if the tax rate stays the same or drops slightly.

Here's what catches people: counties are required to adjust the tax rate so total revenue remains "revenue-neutral" after a reappraisal. But "revenue neutral" applies to the county as a whole, not to individual homeowners. If your home appreciated faster than the county average, your taxes will go up even with a lower rate.

Williamson County, for example, dropped its rate from $1.47 to $1.30 in the 2025 cycle — but many homeowners still saw higher bills because their home values increased by 20–30%.

How to Appeal Your Property Tax Assessment

If you believe your home has been overvalued, you have the right to appeal. Here's the process:

1. Review your assessment notice — The county assessor mails these after each reappraisal cycle. Check the appraised value, assessed value, and property details (square footage, bedroom count, lot size). Errors in property details are the most common (and easiest) basis for appeal.
2. Gather comparable sales — Pull 3–5 recently sold homes in your neighborhood that are similar in size, age, and condition. If they sold for less than your appraised value, you have a case.
3. File with the County Board of Equalization — Each county has a Board that hears appeals during a specific window (usually June–July after reappraisal notices go out). You'll present your evidence — comparable sales, photos showing condition issues, or documentation of errors.
4. State Board of Equalization appeal — If the county board rules against you, you can appeal to the state level. This is more formal but available to all property owners.

The appeal success rate varies, but homeowners with strong comparable sales data — showing their home is assessed higher than similar recently sold properties — have the best outcomes. It costs nothing to file, and many homeowners save hundreds to thousands of dollars.

Property Taxes and Your Home Purchase Budget

Smart buyers factor property taxes into their monthly housing cost calculation from day one. Here's how taxes shift your effective cost across different Tennessee markets:

• $400K home in Williamson County (unincorporated): Assessed $100K × $1.30/100 = $1,300/year ($108/month)
• $400K home in Davidson County (Nashville): Assessed $100K × $3.254/100 = $3,254/year ($271/month)
• $400K home in Knox County (Knoxville city): Assessed $100K × $2.86/100 = $2,860/year ($238/month)
• $400K home in Sevier County (Sevierville): Assessed $100K × $2.05/100 = $2,050/year ($171/month)

That's a $163/month difference between Williamson County and Davidson County on the same $400K home. Over 30 years of ownership, that's nearly $59,000 in cumulative tax savings — a number that should absolutely influence where you buy.

Work with an agent who understands these nuances. At Your Home Sold Guaranteed Realty — Kings of Real Estate, we run full cost analyses for every buyer — including property taxes, insurance, and HOA fees — so there are no surprises after closing.

Frequently Asked Questions About Tennessee Property Taxes

Does Tennessee have a state property tax?

No. Tennessee does not levy a state property tax. All property taxes are assessed and collected at the county and municipal level. Rates vary significantly — from under $1.00 per $100 in some rural counties to over $3.25 in Nashville (Davidson County).

How is property tax calculated in Tennessee?

Residential property is assessed at 25% of its appraised market value. The tax bill equals the assessed value divided by 100, multiplied by the combined county and city tax rate. For example, a $400,000 home assessed at $100,000 with a $2.00 rate pays $2,000 annually.

Which Tennessee county has the lowest property taxes?

Several rural counties have rates under $1.50 per $100. Among the Nashville metro counties, Williamson County's base rate of $1.30 is notably low, and Thompson's Station adds only $0.103 for a combined $1.403 — the lowest for a municipality in the county. Sevier County's tourism-subsidized rate also keeps residential taxes relatively low.

Can I appeal my Tennessee property tax assessment?

Yes. You can appeal to your County Board of Equalization during the review period after a reappraisal. Bring comparable sales data and documentation of any errors in your property's details. There's no cost to file. If the county board denies your appeal, you can escalate to the State Board of Equalization.

When do Tennessee counties reappraise property values?

Most Tennessee counties reappraise every 4–6 years on a schedule set by the State Board of Equalization. Urban counties like Davidson and Knox tend to reappraise more frequently. Between reappraisals, your assessed value stays the same unless you make significant improvements to the property.

*Tracy and seller must agree on price and possession date. Conditions apply.