California vs Tennessee
Property‑Tax Comparison: California vs. Tennessee
Intro
Both California and Tennessee levy property taxes that fund local services such as schools, police, and road maintenance. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), California’s effective property‑tax rate is 0.71 % while Tennessee’s is 0.55 %. The difference in rates translates into lower annual taxes for comparable home values in Tennessee.
Side‑by‑Side Metrics
| Metric | California | Tennessee |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 0.55 % |
| Median home value | $695,400 | $256,800 |
| Median annual property tax | $4,926 | $1,400 |
| Property tax on a $250,000 home | $1,771 | $1,363 |
| Property tax on a $500,000 home | $3,542 | $2,726 |
| Median household income | $96,334 | $67,097 |
Sources: Data drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Who Wins on Property Taxes?
Winner (lower tax rate): Tennessee
- Tax‑rate difference: 0.16 % (Tennessee’s rate is 23.04 % lower than California’s: 0.16 ÷ 0.71 ≈ 0.2304).
- Annual tax difference for a $250 k home: $408 less in Tennessee ($1,771 – $1,363).
- Annual tax difference for a $500 k home: $816 less in Tennessee ($3,542 – $2,726).
Because the effective tax rate is the primary driver of annual liability, Tennessee’s lower rate results in consistently smaller property‑tax bills for the same assessed value.
Which Homebuyers or Residents Benefit Most?
| Audience | Relevance of Comparison |
|---|---|
| Current homeowners in either state can gauge how much of their housing cost is attributable to property tax and anticipate changes if they relocate. | |
| Prospective homebuyers evaluating affordability will see that, for a given home price, Tennessee imposes a smaller tax burden. | |
| Retirees often rely on fixed incomes; the lower tax rate in Tennessee can reduce overall living expenses, especially if they own modest‑valued homes. | |
| Investors assessing cash‑flow properties benefit from understanding how tax rates affect net operating income across states. |
The comparison is most useful for anyone whose decision to buy, sell, or remain in a property is sensitive to annual tax costs.
Additional Resources
- Detailed information on California’s property‑tax structure: California property tax
- Detailed information on Tennessee’s property‑tax structure: Tennessee property tax
Based on the most recent ACS estimates, the figures above reflect median values and rates; actual tax bills may vary depending on local assessment practices, exemptions, and supplemental district levies.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.