Property taxes in Tennessee are assessed and collected by local governments. Residential and farm property is assessed at 25 percent of the appraised value. Tax rates are set by the county commissions and city governments and are expressed in terms of amounts per $100 of assessed value. You can find assessment information for each county on the Tennessee Comptroller of the Treasury website. There are tax breaks in Tennessee for certain qualifying homeowners, including persons age 65 or older, disabled persons and disabled veterans. Property tax relief in Tennessee is not an exemption but rather a payment by the state to reimburse homeowners who qualify.
Seniors and disabled homeowners
Tennessee homeowners who are 65 or older can qualify for property tax relief on up to $25,000 of the market value of their principal residence. To qualify, the total annual income of the homeowner, spouse and other owners of the property cannot be more than $26,830. The spouse’s income must be taken into consideration whether or not he or she is an owner. For these purposes, all income is taken into account, including retirement income.
Disabled homeowners who claim property tax relief must be rated as totally permanently disabled by the Social Security Administration or another qualified agency. The property tax relief is also available on up to $25,000 of market value of the principal residence, and the income requirements are the same as for seniors.
Disabled veterans
Tennessee homeowners who are veterans with a total and permanent service-connected disability can claim property tax relief on up to $175,000 of the market value of their principal residence. Determination of eligibility is based on information from the Veterans’ Administration. Surviving spouses of disabled veterans can also qualify for this property tax relief if they have not remarried.
How to claim property tax relief
To request this property tax relief you should contact your county trustee and your local city tax collecting office if you live within city limits. You can find information on county assessors and trustees office locations and contacts on the Tennessee Comptroller of the Treasury website.
Property tax freeze
Tennessee homeowners age 65 or older could also qualify for a property tax freeze on their principal residence. Under this program, property taxes are frozen at the amount of tax you owe in the year you first qualify. From then on, your property taxes will not change even if there is a rate increase. The amount of property taxes you pay would only change if you make improvements to the property that increase its value or if you sell your home and purchase another home.
This property tax freeze is at the option of the local county or municipality, so it would apply if you live in a county or municipality that has enacted this program. Each county or municipality can have their own income requirements to be eligible for the property tax freeze. You should contact your county and city tax assessors to see if the property tax freeze is in effect where you live and what you need to do to claim this property tax relief.
Sources:
Assessors and Trustees – Tennessee Comptroller of the Treasury
Assessment Information for Each County – Tennessee Comptroller of the Treasury
General Property Tax Relief Questions & Answers – Tennessee Comptroller of the Treasury
Property Tax Relief – Elderly or Disabled Homeowner – Tennessee Comptroller of the Treasury
Property Tax Relief – Disabled Veteran Homeowner – Tennessee Comptroller of the Treasury
State of Tennessee Property Tax Freeze Program – Tennessee Comptroller of the Treasury
Reference:
- The Facts on Tennessee’s Tax Climate: www.taxfoundation.org/research/topic/59.html
- Property Tax Reduction and Relief Programs: www.tennessee.gov/tacir/PDF_FILES/Taxes/property%20tax%20reduction.pdf
- Tennessee County Trustee’s Association: www.tennesseetrustee.com/
