What is the Property Tax Rate in Tennessee?
Based on HomeLight’s analysis of publicly available data, the average effective property tax rate for a primary residence in Tennessee is approximately 0.49% of its estimated value. This is lower than the national average of 0.90%.
For example, with a 0.49% effective tax rate, a homeowner with a $381,010 home might pay around $1,867 in annual property taxes.
An effective property tax rate represents the actual percentage of a property’s market value that a homeowner pays in taxes, considering the assessed value and any exemptions or deductions.
Note: HomeLight’s Tennessee property tax calculator provides a ballpark estimate for a primary residence using average rates. Your tax can vary based on location and the specific taxing districts (e.g., schools, fire districts, and libraries) that apply to your parcel. For a precise number, contact the assessor’s office in the county where the property is located.
Are There Property Tax Exemptions in Tennessee?
Homeowners in Tennessee may qualify for several property tax exemptions that can lower their tax bill. These are offered through the TN Tax Relief Department, depending on your location.
Tennessee offers several tax relief options for eligible individuals, such as disabled or senior citizens. However, these programs are not considered tax exemptions.
When Are Tennessee Property Taxes Due?
Property taxes in Tennessee are billed annually. Depending on the county, they are typically due on the first Monday of October and due by the end of February before being considered delinquent and subject to additional fees and penalties.
What Do Property Taxes Pay For in Tennessee?
Local property taxes in Tennessee pay for important local services, including:
- Public schools
- Police, fire, and EMS services
- Roads, streets, and traffic signals
- Parks, libraries, and community centers
- City and county government operations
- Infrastructure like water, sewer, and trash services
- Repayment of local bond projects (such as transit and school improvements)
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
What Does It Cost to Buy a Home in Tennessee?
How Much House Can You Afford?
Affordability in Tennessee depends on your income, debt, credit score, and mortgage rate. With a median household income of around $67,631 in the Volunteer State, a buyer might afford a home in the $200,000-$250,000 range using standard debt-to-income guidelines. However, with the Tennessee median home price hovering at $381,010, many buyers need dual incomes or additional savings to qualify.
Use HomeLight’s Home Affordability Calculator to estimate your budget based on your income, debts, and current rates.
What Down Payment Will You Need in Tennessee?
According to Visual Capitalist, the average down payment on a house in Tennessee is 14.6%. However, down payment amounts vary widely depending on loan type and credit score. While 20% used to be the expected standard, many buyers put down between 5% and 15%, with 3% options available for FHA and some conventional first-time buyer loans.
For a $381,010 home, here’s what your down payment could look like:
- 3% down = $11,430
- 5% down = $19,051
- 10% down = $38,101
- 15% down = $57,152
- 20% down = $76,202
Try HomeLight’s Down Payment Calculator to see how different down payments affect your monthly payment and loan size.
How Much Are Closing Costs in Tennessee?
Buyers in Tennessee can expect to pay about 2% to 5% of the purchase price in closing costs. These may include:
- Loan origination and underwriting fees
- Title insurance and escrow fees
- Appraisal and inspection costs
- Prepaid property taxes and homeowners’ insurance
- Filing and recording fees
For a $381,010 home, that means estimated closing costs of $7,620 to $19,051. Use HomeLight’s Closing Costs Calculator to get a personalized estimate based on your expected Tennessee home purchase price.
How To Find a Trusted Tennessee Real Estate Agent
An experienced Tennessee agent can help you understand local tax rates, school districts, and development trends — and guide you toward neighborhoods that fit your lifestyle and budget.
HomeLight’s free Agent Match tool uses data from over 27 million transactions and thousands of verified reviews to match you with top Tennessee agents based on proven performance. Tell us a little about your buying plans and get matched today with no obligation.
Additional resources when searching for a trusted buyer’s agent in Tennessee:
Buying and Selling? Consider “Buy Before You Sell”
If you’re buying a new home in Tennessee but need to sell your current property first, HomeLight’s Buy Before You Sell program can simplify the entire process. This modern solution helps you unlock equity from your current home so you can make a non-contingent offer on your new home — and only move once. Watch the short video below to see how it works.