Tennessee property tax: rates, calculation and tax relief

How is a Tennessee tax bill calculated?

The Comptroller lists four steps. The county assessor sets the appraised value. State law sets the assessment ratio: residential and farm property at 25%, commercial and industrial property at 40%. Assessed value is appraised value times the ratio. The county commission, or in Nashville the Metro Council, sets the tax rate. Tax is assessed value divided by 100, times the rate.

What are the rates in Nashville?

Davidson County has two main rate districts. The Urban Services District (USD) pays for services such as garbage pickup, street lights and sidewalks; the General Services District (GSD), the area beyond, does not. Small satellite cities may add their own rate.

The 2025 drop reflects the reappraisal. State law requires a “Certified Tax Rate” after each reappraisal, so that the reappraisal does not raise revenue on existing property (Assessor). Rates are not final until certified by the State Board of Equalization (Trustee).

What does it cost: a worked example

This is an example, not a quote. A home with a $400,000 appraised value in the USD:

That is about 0.70% of appraised value in both districts, a figure we computed from the rates above. Your actual bill depends on your address, your district and any satellite-city tax.

Is there a homestead exemption?

The Comptroller’s programs page lists two programs, tax relief and tax freeze, and neither is an exemption. Relief is a state reimbursement: you still receive and pay the bill.

Tax relief helps low-income homeowners who are 65 or older, disabled, or disabled veterans and their surviving spouses. For 2026 the maximum 2025 income is $38,470 (applicant, spouse, co-owners). Relief is calculated on up to $33,600 of market value for elderly and disabled owners and $175,000 for disabled veterans (Comptroller brochure).

Tax freeze locks your tax at the amount owed in the first year you qualify. Davidson County adopted it in 2007. You must be 65 by the end of the year, own and live in the home, and have income under the 2026 limit of $63,470. The Trustee says up to five acres can be frozen. The base amount changes if you improve the property or sell and buy another home (Comptroller).

In Davidson County, apply to the Trustee by April 5, 2027 for the 2026 tax year, after paying the taxes in full.

When are taxes due?

Property is assessed as of January 1. Taxes are due the first Monday of October and must be paid by the last day of February to avoid interest. From March 1, interest of 1.5% a month is added (Trustee). The Trustee mails statements the first week of October, but Tennessee law does not require mailing, and a missed bill does not excuse late payment. When a house sells, the Trustee says to check your closing statement to see who owes the tax; see Tennessee closing costs.

How do I appeal an assessment?

Davidson County’s last reappraisal was in 2025, on a four-year cycle. Appeal steps:

1. Informal review with the Assessor. For 2026 the deadline was April 17, 2026.
2. Metropolitan Board of Equalization, the first formal level. For 2026 the deadline to schedule was June 26, 2026; call 615-862-6059.
3. State Board of Equalization, generally by August 1 or within 45 days of the county board’s notice, whichever is later (Comptroller).

Informal review is optional. Deadlines move each year, so check the Assessor’s site in spring. See also the Nashville page and homeowners insurance, which lenders often collect with taxes in an escrow account.