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Key takeaways
- Tennessee’s average effective property tax rate is about 0.5%, but it ranges from about 0.43% to 0.97% across the largest counties.
- Residential property is assessed at 25% of appraised value, and there is no state property tax on homes.
- Closing taxes add about $1,615 on a $350,000 home with a $280,000 loan: $1,295 in transfer tax and $319.70 in mortgage tax.
- THDA’s Great Choice loan and Great Choice Plus help can reduce the cash needed to buy, with a 640 minimum credit score.
What this Tennessee mortgage calculator does
It is the full monthly-cost calculator, loaded with Tennessee assumptions: a 0.52% property tax rate and $3,408 a year for insurance. You get principal and interest, property tax, insurance, PMI when your down payment is under 20%, and HOA dues, plus a payoff schedule and the effect of extra payments. Every figure is editable, so it works for a Nashville suburb, a Knoxville home or a Memphis neighborhood.
How it works for Tennessee buyers
Enter the price, down payment, rate and term. Because tax rates differ by county and city, the best improvement you can make is to look up your county and city rates and the appraised value, or the last tax bill on similar homes, and enter that percentage. Copy the link to share your result.
How Tennessee property tax is calculated
The formula is appraised value × 25% × tax rate ÷ 100, where the rate is the combined county and city rate per $100 of assessed value. The 25% ratio is set by the state constitution for residential property, so the effective rate on market value is a quarter of the headline rate. Comparing headline rates between counties can mislead, so compare effective rates instead. Counties reappraise on a multi-year cycle, and after a reappraisal the rate is normally adjusted so the county does not collect extra money from rising values, but your own bill can still change.
Worked example: $350,000 home, 20% down, 6.5%
The $280,000 loan has principal and interest of $1,769.79. Property tax at 0.52% is $1,820 a year, or $151.67 a month. With $3,408 a year for insurance ($284.00 a month), the payment is $2,205.46.
Change the tax rate from 0.43% to 0.97% and the payment moves by about $158 a month. Change the insurance estimate from $2,122 to $4,220 and it moves by about $175 a month. In Tennessee, both the county and the insurance quote matter. This example uses illustrative assumptions, not a quote.
Closing taxes in Tennessee
The state charges a realty transfer tax of $0.37 per $100 of the price and a mortgage recording tax of $0.115 per $100 of the loan, with the first $2,000 of debt exempt. On the $350,000 example that is $1,295 in transfer tax and $319.70 in mortgage tax, about $1,615 in total, plus county recording fees. The buyer usually pays the transfer tax by custom, though it is negotiable, so ask for it in your offer if you want the seller to cover it.
More to know about buying in Tennessee
Compare assistance programs early
THDA’s Great Choice Home Loan, mostly FHA or USDA insured, and Great Choice Plus can change how much cash you need. Income and price limits depend on the county, and homebuyer education is required for the assistance. Run the loan types through the FHA, VA and USDA calculators, and see what you can buy with the affordability calculator.
Check the tax relief rules
Tennessee has no general homestead exemption, but relief programs exist for eligible seniors, disabled homeowners and disabled veterans. They require an application with the county trustee.
Insurance and storms
Tornadoes and severe storms drive premiums, especially in Middle and West Tennessee. Ask about wind and hail deductibles and roof age, and ask whether earthquake coverage makes sense near the New Madrid zone.
Estimate only. Tax rates, programs and insurance prices change, and this page is not tax or legal advice.
Frequently asked questions
What is the average property tax rate in Tennessee?
Statewide, the effective rate is about 0.5% of home value; the Tax Foundation figure cited for 2024 is 0.52%. By county it varies widely: among the largest counties, published estimates run from about 0.43% in Williamson County to about 0.97% in Shelby County, and some rural counties are lower still. The calculator starts at 0.52%, so replace it with your county’s rate.
How is Tennessee property tax calculated?
The county assessor sets an appraised value, residential property is assessed at 25% of that value, and the county and city tax rates, quoted per $100 of assessed value, are applied to the assessed value. For example, a $350,000 home has an assessed value of $87,500, and a combined rate of $2.50 per $100 would produce a $2,187.50 bill. There is no state property tax on homes, so the bill depends on where you live.
What closing taxes does Tennessee charge?
The state charges a realty transfer tax of $0.37 per $100 of the purchase price and a mortgage recording tax of $0.115 per $100 of the loan, with the first $2,000 of the debt exempt. The buyer usually pays the transfer tax by custom, though it can be negotiated, and the borrower pays the mortgage tax. County recording fees are extra.
Is there property tax relief in Tennessee?
Tennessee has no general homestead exemption. The state-reimbursed Tax Relief program helps eligible low-income homeowners who are 65 or older or disabled, a separate program helps qualifying disabled veterans and their surviving spouses, and some counties allow a locally adopted tax freeze for seniors. You apply through your county trustee, and income limits and amounts change each year.
Does Tennessee offer down payment assistance?
Yes. The Tennessee Housing Development Agency (THDA) runs the Great Choice Home Loan, a 30-year fixed-rate loan with a minimum credit score of 640 and income and purchase price limits that vary by county, and the Great Choice Plus program for down payment and closing cost help. Homebuyer education is required for the assistance. Amounts and options change, so confirm them at thda.org or with a THDA-approved lender.
How much is homeowners insurance in Tennessee?
Published statewide averages range from about $1,700 to over $4,200 a year depending on the source and the coverage amount. A LendingTree report cited by Tennessee agents in 2026 puts the average near $3,408, which the calculator uses as a starting point. Tornadoes and severe storms are the main risk, so get quotes for the actual address and ask about wind and hail deductibles.
Do I need earthquake insurance in Tennessee?
Standard homeowners policies exclude earthquake damage. West Tennessee is near the New Madrid seismic zone, so ask an agent whether separate earthquake coverage makes sense for the area you are buying in.