Tennessee taxes property sales through its realty transfer tax, does not require an attorney at closing and requires a seller disclosure form. It allows both court and out-of-court foreclosure and lets couples opt in to community property.
Tennessee in short
Is there a real estate transfer tax in Tennessee?
Tennessee taxes both the deed and the loan: the realty transfer tax is $0.37 per $100 of purchase price and the mortgage tax is $0.115 per $100 of debt with the first $2,000 exempt. By the Department of Revenue's rules the buyer pays the first and the borrower the second.
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What closing costs does Tennessee law set?
Tennessee has no official typical closing-cost total. The buyer owes a realty transfer tax of $0.37 per $100 of price and the borrower a mortgage tax of $0.115 per $100 after the first $2,000, which is $1,480 and $365.70 on a $400,000 home with a $320,000 loan.
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How is property tax calculated in Tennessee?
Tennessee assesses homes at 25% of appraised value. In Nashville-Davidson County the 2025 rate is $2.814 per $100 of assessed value in the Urban Services District and $2.782 in the General Services District, or $2,814 a year on a $400,000 home in the USD.
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What is the deadline to appeal a property tax assessment in Tennessee?
In Nashville-Davidson County, Tennessee, the 2026 deadline for informal review with the Assessor was April 17 and for the Metropolitan Board of Equalization was June 26, and you can appeal to the State Board of Equalization generally by August 1 or within 45 days of the county board's notice, whichever is later.
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Do you need a real estate attorney to close in Tennessee?
None of the Tennessee sources read requires a lawyer at a home closing. A 2007 Attorney General opinion (07-88) says preparing deeds, deeds of trust and sale contracts is not the practice of law, though it can be law business when it takes a lawyer professional judgment.
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What must a home seller disclose in Tennessee?
Tennessee's Residential Property Disclosure Act (Tenn. Code Ann. 66-5-201 and following) covers one- to four-unit homes and prescribes a disclosure form in 66-5-210. The article does not summarize the sections on alternatives to the form, exemptions, or buyer remedies.
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How does foreclosure work in Tennessee?
Most Tennessee foreclosures happen by advertisement, without a court case, according to the Tennessee Housing Development Agency. Under Public Chapter 515, effective July 1, 2025, the sale must be advertised in a newspaper at least 2 times, starting 20 days before the sale, plus online for 20 days.
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What first-time home buyer programs does Tennessee offer?
In Tennessee, the Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan with optional Great Choice Plus down payment help of up to $15,000, or up to $25,000 for newly built homes.
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Is Tennessee a community property state?
Tennessee is not a community property state. Since July 1, 2010, spouses can choose community property treatment by placing property in a trust under the Tennessee Community Property Trust Act (T.C.A. 35-17-101 and following).
Tennessee guides
- Closing costs in Tennessee: what buyers and sellers pay
- Tennessee transfer tax and mortgage tax: rates and who pays
- Tennessee property tax: rates, calculation and tax relief
- Seller disclosure requirements in Tennessee
- Do you need a real estate attorney to close in Tennessee?
- Foreclosure process in Tennessee: notice, sale, and help
- Home prices in Tennessee and Nashville: median value and trend
- First-time home buyer programs in Tennessee and Nashville
- How to verify a real estate license in Tennessee
- Community property and buying a home in Tennessee (state-specific topic)