Tennessee Property Tax

Effective Property Tax Rate

54.52%

Median Annual Tax

$1,400

Median Home Value

$256,800

Tennessee Property Tax Overview

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Summary of Key Statistics

Metric	Value (2023 ACS)
Median home value	$256,800
Effective property tax rate	0.55 %
Median annual property tax bill	$1,400
Rank among U.S. states & territories (by effective rate)	12th out of 52
Comparison to national average effective rate (0.97 %)	43.66 % lower

Sources: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

How the Tennessee Property Tax Rate Is Calculated

The effective property tax rate is the average amount of tax paid per $100 of assessed value. In Tennessee, the 0.55 % rate means that a homeowner typically pays $0.55 in tax for every $100 of market value.

Example Tax Bills

Assessed Home Value	Approximate Annual Tax (0.55 % rate)
$250,000	$1,363
$500,000	$2,726

These figures are derived by multiplying the home value by the effective rate (e.g., $250,000 × 0.0055 = $1,363).

Variation by County

Property tax rates in Tennessee are set at the county and municipal level. While the state‑wide effective rate averages 0.55 %, individual counties may have rates that are higher or lower depending on local budgets, school district funding, and other levy decisions. Homeowners should consult the assessor’s office in their specific county for precise rates.

Comparison to the National Landscape

National average effective property tax rate (2023 ACS): 0.97 %
Tennessee’s rate: 0.55 % – 43.66 % below the national average.

Tennessee’s position at #12 out of the 52 U.S. states and territories indicates a relatively low tax burden compared with most jurisdictions.

Implications for Specific Groups

Retirees

Retirees often consider overall tax burden when selecting a residence. The lower effective Tennessee property tax rate reduces the annual cost of homeownership relative to many other states. However, property tax is only one component of total tax exposure; retirees should also evaluate state income‑tax treatment of retirement income, sales tax, and any applicable local taxes.

Landlords

For landlords, property tax is a recurring expense that influences cash‑flow calculations. The 0.55 % effective rate generally results in lower property‑tax expenses than the national average, potentially improving net operating income (NOI) on rental properties. Landlords must still account for county‑specific variations and any additional levies (e.g., special assessments) that may apply to rental units.

Frequently Asked Questions

Question	Answer
What is the average effective Tennessee property tax rate?	Based on the most recent ACS estimates, the average effective rate is 0.55 %.
How does Tennessee’s property tax compare to the national average?	Tennessee’s effective rate is 43.66 % lower than the national average of 0.97 %, placing the state 12th lowest among all states and territories.
Do property tax rates differ across the state?	Yes. Property tax rates are set by individual counties and municipalities, so the effective rate can vary locally. Homeowners should check with their local tax assessor for precise rates.

All figures reflect data from the U.S. Census Bureau's American Community Survey (ACS) 5‑year estimates for 2023.

Neighboring States