{"id":53457,"date":"2020-09-02T14:22:28","date_gmt":"2020-09-02T19:22:28","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=53457"},"modified":"2021-01-13T20:33:27","modified_gmt":"2021-01-14T02:33:27","slug":"what-is-tennessee-property-tax","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/what-is-tennessee-property-tax\/","title":{"rendered":"What is Tennessee Property Tax?"},"content":{"rendered":"

Editor\u2019s Note:\u00a0<\/em><\/strong>For purposes of this article, we will discuss taxes on real property in Tennessee.<\/em><\/p>\n

\"IRAProperty 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.<\/p>\n

Within the U.S., state property taxes vary. For instance, your property taxes in Tennessee will differ from those in a different state.\u00a0Read on to learn more about Tennessee property taxes!<\/p>\n

How Do Property Taxes in Tennessee Stack Up?<\/h2>\n

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.<\/p>\n

Who Owes Property Taxes?<\/h2>\n

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.<\/p>\n

How is Tennessee State Property Tax Calculated?<\/h2>\n

Local tax assessors take the property\u2019s 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:<\/p>\n

Assessed Value \/ 100 \u00a0\u00d7 Tax Rate<\/a> (per hundred of assessed value)\u00a0\u00a0=\u00a0 Tax Amount<\/em><\/strong><\/p>\n

EXAMPLE <\/em><\/h3>\n

Assume you have a house with an\u00a0APPRAISED VALUE\u00a0<\/strong>of $100,000. The\u00a0ASSESSED VALUE\u00a0<\/strong>is $25,000 (25% of $100,000), and the\u00a0TAX RATE\u00a0<\/strong>has been set by your county commission at $3.20 per hundred of assessed value. To figure the tax simply multiply the\u00a0ASSESSED VALUE<\/u>\u00a0<\/strong>($25,000) by the\u00a0TAX RATE<\/u>\u00a0<\/strong>(3.20 per hundred dollars assessed).<\/p>\n\n\n\n
\u00a0 $25,000\/100 = 250 x $3.20 = $800.00<\/td>\n\u00a0or<\/td>\n<\/td>\n\u00a0($25,000 x .03200 = $800.00)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What is the Tennessee Property Tax Rate?<\/h2>\n

The Tennessee State property tax rate depends on the county you live in. View the Tennessee Comptroller of the Treasury<\/a> for updated property tax rate information.<\/p>\n

What Are Tennessee Property Taxes Used For?<\/h2>\n

The money collected by Tennessee is used for multiple public services throughout the state. It could be used for:<\/p>\n