Tennessee · 99th largest metro area

Buying a home in Chattanooga, Tennessee

In Chattanooga, the median value of owner-occupied homes is $283,200, Hamilton County's effective property tax rate is 0.62%, a purchase mortgage carried a median $6,031 in total loan costs in 2025, and median gross rent is $1,256 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Chattanooga home costs, fact by fact

About Chattanooga

Chattanooga, Tennessee, has 191,496 residents in Census estimates. Owners occupy 52.4% of homes, and median gross rent is $1,256 per month.

Reading the Chattanooga figures

Chattanooga sits between both ends of Tennessee. Its $283,200 falls short of the state median, $341,200, and of Nashville, at $413,600. Knoxville is lower, with $239,700, and Memphis lower again, with $169,000. It shares Nashville's ownership rate, 52.4%, which is higher than in Knoxville or Memphis.

Rent of $1,256 a month trails HUD's benchmark of $1,340, and Nashville's $1,586 is higher still. In Hamilton County the 0.62% tax rate equals $1,925 a year, with the county median home valued at $312,800. Lenders' median in 2025 was $6,031, and most loans ran from $4,367 to $9,588. Choosing Chattanooga over Nashville means a lower price level without a lower owner share. The metro area ranks 99th nationally, and the city's population is 191,496, close to Knoxville's 198,722 and Clarksville's 185,690.

Calculate for Tennessee

If you buy

Tennessee state transfer tax

Realty transfer tax (recordation tax, Tenn. Code Ann. 67-4-409): $0.37 per $100 of purchase price (0.37%). Change the price: the amount is recalculated instantly.

Price$341,200
State transfer tax$1,262.44
Share of the price0.37% of the price
Who paysThe buyer

Default price: the Tennessee median value of owner-occupied homes, $341,200 (Census ACS 2025). Rule: Price divided by $100, times $0.37. The base for a typical sale is the greater of the price paid or the value of the property at transfer. The sources do not say how a fraction of $100 is handled. Who pays: The Department's manual says the grantee (buyer named on the deed) pays the realty transfer tax and the mortgagor pays the mortgage tax; the manual does not discuss private agreements, so check the purchase contract. Not included: county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Tennessee transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Tennessee state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Chattanooga

How much is property tax in Chattanooga?

Homeowners in Hamilton County pay a median $1,925 a year in property tax, 0.62% of the county median home value of $312,800 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Chattanooga?

Home-purchase mortgages in Hamilton County carried median total loan costs of $6,031 in 2025; half of the 3,908 loans fell between $4,367 and $9,588 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Chattanooga?

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.

Is it cheaper to rent or buy in Chattanooga?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Chattanooga ($283,200) equals 18.8 years of the median gross rent ($1,256 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Tennessee rules that apply in Chattanooga

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Sources

Tennessee · All states · Federal guides