Tennessee (TN) property tax rate: 0.66% | Median home: $375,000 | Median annual tax: $2,475
Tennessee is a booming Southeast state with no state income tax. The average effective property tax rate in Tennessee is 0.66%, which is below the national average of 1.1%.
On the median Tennessee home valued at $375,000, annual property taxes come to approximately $2,475 or $206/month. This is a significant part of your total housing cost and should be factored into any home purchase budget.
Pro tip: Tennessee has no state income tax on wages. Low property taxes add to overall affordability.
Tennessee has no state income tax, which means property taxes are one of the primary revenue sources for local governments. While the property tax rate may seem moderate, the lack of income tax often makes the overall tax burden competitive.
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Tennessee has an average effective property tax rate of 0.66%. On the median home value of $375,000, that equals approximately $2,475 per year or $206 per month.
Property taxes in Tennessee are calculated by multiplying your home assessed value by the local tax rate. The assessed value may differ from market value depending on your county assessment ratio. Exemptions like homestead exemptions can reduce your taxable value.
Tennessee has no state income tax on wages. Low property taxes add to overall affordability.
Tennessee property taxes are well below the national average of 1.1%. This is a genuine financial advantage for homeowners in Tennessee.
Property tax due dates vary by county in Tennessee. Most counties offer semi-annual payments. Check with your county tax assessor office for specific due dates. Late payments typically incur penalties of 1-2% per month.