When people talk about moving to Tennessee, the first thing they mention is no state income tax. That's real and it matters. But property taxes are the tax that hits you every single year on your biggest asset — and they vary dramatically by county and get overlooked in most relocation conversations.
Here's what you actually pay.
Tennessee Property Tax Rates by County
Property taxes in Tennessee are set at the county level. The state average effective rate is approximately 0.56% — but there's meaningful variation across counties that matter to buyers:
| County | City | Effective Rate | Annual Tax on $400k | Annual Tax on $600k |
|---|---|---|---|---|
| Davidson | Nashville | ~0.57% | ~$2,280 | ~$3,420 |
| Williamson | Franklin / Brentwood | ~0.52% | ~$2,080 | ~$3,120 |
| Knox | Knoxville | ~0.44% | ~$1,760 | ~$2,640 |
| Hamilton | Chattanooga | ~0.51% | ~$2,040 | ~$3,060 |
| Shelby | Memphis | ~1.09% | ~$4,360 | ~$6,540 |
| Montgomery | Clarksville | ~0.55% | ~$2,200 | ~$3,300 |
| Hardin (suburb) | Elizabethtown area | ~0.41% | ~$1,640 | ~$2,460 |
Tennessee vs. the States Buyers Move From
| State | Avg Effective Rate | $400k Home/yr | $600k Home/yr | State Income Tax |
|---|---|---|---|---|
| Tennessee | ~0.56% | ~$2,240 | ~$3,360 | None |
| Florida | ~0.89% | ~$3,560 | ~$5,340 | None |
| Texas | ~1.60% | ~$6,400 | ~$9,600 | None |
| North Carolina | ~0.78% | ~$3,120 | ~$4,680 | 4.5% flat |
| Georgia | ~0.83% | ~$3,320 | ~$4,980 | 5.49% |
| Illinois | ~2.05% | ~$8,200 | ~$12,300 | 4.95% flat |
| New York | ~1.54% | ~$6,160 | ~$9,240 | Up to 10.9% |
| New Jersey | ~2.21% | ~$8,840 | ~$13,260 | Up to 10.75% |
| California | ~0.73% | ~$2,920 | ~$4,380 | Up to 13.3% |
The Real Tax Picture for Nashville Buyers
The number that matters isn't property tax alone — it's total state and local tax burden. Tennessee is one of only a handful of states with no income tax and below-average property taxes. The combination is genuinely rare.
A family earning $150,000 moving from Illinois to Nashville saves approximately:
- ~$7,425/year in state income tax (Illinois 4.95% flat)
- ~$5,960/year in property tax on a $400k home (Illinois ~2.05% vs. TN ~0.57%)
- ~$13,385/year in combined state tax savings
That's not nothing. Over 10 years that's $133,000 in additional household income — which is a significant portion of a home's down payment or equity.
What Tennessee Doesn't Have (That Adds Up Elsewhere)
Tennessee has no state income tax, no inheritance tax, and no estate tax. The only broad-based state taxes are sales tax (state rate 7%, one of the higher ones nationally — factor this in) and property tax. For retirees especially, Tennessee's tax environment is among the most favorable in the country.
How to Estimate Your Tax Bill Before You Buy
Tennessee property is assessed at 25% of appraised value for residential property. The tax rate is then applied to the assessed value. So on a $500,000 home in Davidson County:
- Assessed value: $500,000 × 25% = $125,000
- Davidson County rate: approximately $3.254 per $100 of assessed value
- Annual tax: $125,000 ÷ 100 × $3.254 ≈ $4,068/year (aligns with ~0.57% effective rate on full value)
Use our property tax lookup tool to see exact rates for any county in all 50 states side by side.
Frequently Asked Questions
Before you look at houses, know your neighborhood.
Get your personalized neighborhood match — crime grades, school ratings, and live prices. Free, no account needed, 2 minutes.
Find My Neighborhood →