What is Tennessee Property Tax?


Editor’s Note: For purposes of this article, we will discuss taxes on real property in Tennessee.

IRA interestProperty tax is a type of taxation that requires owners of land and buildings to pay an amount of money based on the value of their real property, or land and buildings.

Within the U.S., state property taxes vary. For instance, your property taxes in Tennessee will differ from those in a different state. Read on to learn more about Tennessee property taxes!

How Do Property Taxes in Tennessee Stack Up?

The average American household pays $2,127 on property taxes on their homes each year. The average Tennessee household will likely pay less than that.

Who Owes Property Taxes?

If you own property as an individual or a business, you are required to pay Tennessee property tax. Even if the property was given to you through an estate or you own a rental property, you will still be held accountable for paying Tennessee property taxes.

How is Tennessee State Property Tax Calculated?

Local tax assessors take the property’s assessed value, the current assessment rate, and tax exemptions or property abatements into account in order to assess the value of the property. From there, property taxes are assessed based on the following calculation:

Assessed Value / 100  × Tax Rate (per hundred of assessed value)  =  Tax Amount


Assume you have a house with an APPRAISED VALUE of $100,000. The ASSESSED VALUE is $25,000 (25% of $100,000), and the TAX RATE has been set by your county commission at $3.20 per hundred of assessed value. To figure the tax simply multiply the ASSESSED VALUE ($25,000) by the TAX RATE (3.20 per hundred dollars assessed).

  $25,000/100 = 250 x $3.20 = $800.00  or  ($25,000 x .03200 = $800.00)

What is the Tennessee Property Tax Rate?

The Tennessee State property tax rate depends on the county you live in. View the Tennessee Comptroller of the Treasury for updated property tax rate information.

What Are Tennessee Property Taxes Used For?

The money collected by Tennessee is used for multiple public services throughout the state. It could be used for:

  • First responders and other law enforcement
  • General government services
  • Municipal employee pay
  • Municipal infrastructure
  • Protective services
  • Recreational services
  • Resident services

How Do You Pay Tennessee Property Tax?

If you pay a mortgage, it’s likely you are already paying your Tennessee property taxes. This payment is made through an escrow account. A standard mortgage payment includes:

  • Homeowner’s insurance
  • Interest
  • Principal
  • Tennessee property taxes

Look at your current mortgage statement and determine if your Tennessee property taxes are paid with your monthly mortgage. It will likely be listed as a line item on the statement.

When Are Property Taxes Due?

Taxes become due and payable the first Monday of October and must be paid in full by the last day of February of the following year to avoid interest. On the first day of each month beginning March 1, interest of 1.5% (18% annually) will likely be added to your base tax amount for delinquent payments.

Where to Go for Tennessee Property Tax Help

If you’re looking for more state of Tennessee tax help, look no further than H&R Block Virtual. We’ll pair you with a tax pro with state-specific expertise. You can have your taxes done by a real tax pro without visiting an office.

Prefer a different way to file? No problem – you can find Tennessee state tax expertise with all of our ways to file taxes.

Related Topics

Related Resources

Claiming Parents as Dependents

Review the criteria that could allow you to claim your parents as dependents on your taxes with help from the tax experts at H&R Block.

Alabama Income Tax

Looking for information on Alabama state income tax? Read here to find out who pays, how to pay and more from the tax pros at H&R Block.

Preparing Your Tax Document Checklist

If you are just getting your tax documents together and figuring out what to do next, here is a handy checklist to help you keep everything organized.

Tax-Free Investments for Children

What tax-free investments are available for your children? Review investments that can provide tax-free growth with H&R Block.