Tennessee has some of the lowest property tax rates in the country. The average property tax rate paid in Tennessee is 0.64%, and the average homebuyer pays $1,220 for property taxes, which is significantly below the national average. Of course, every county has their own property tax rates. This review examines how middle Tennessee compares with the state average as it relates to property tax rates.
What are property taxes?
A property tax is a tax issued by the government based on the value of your home. Property taxes are typically paid twice per year, although payment methods vary. Property tax can apply to land purchases as well as home purchases. The money paid to the government in the form of property tax is used for government-funded programs, such as fire departments, public recreation, education, etc.
How is property tax generally calculated?
The amount you pay in property tax depends on your county’s specific property tax rate (see below).The formula that is generally used to calculate property tax is:
- Assessed value/100 x the property tax rate.
To calculate how much you can expect to pay in property taxes, you should use the formula above. For example, if your home’s assessed value is $350,000, then you would divide that number by 100, which leaves you with $3,500. You then multiply this number by your property tax rate. To use the average tax rate in all of Tennessee as an example, you would multiply $3,500 x .64%, which leaves you with $2,240 in property tax.
What is the property tax rate for middle Tennessee cities?
The property tax rates listed for middle Tennessee below are per $100 of assessed value. This calculation is slightly different than the example above. For example, in WIlson County, you would pay $2.5189 per every $100 of your property’s assessed value. The average property tax rate for middle Tennessee counties is as follows:
- Lebanon City – $3.7591
- Mt. Juliet City – $2.6853
- Franklin – $2.5776
- Brentwood – $2.58
- Fairview – $3.0965
- Millersville – $3.262
- Smyrna – $2.9201
- Murfreesboro – $3.5088
- Eagleville – $2.77641
To give another example of how this works, let’s use a home in Murfreesboro that has an assessed value of $75,000. Using the $3.5088 per $100 property tax rate, you would get $2,631.6 when multiplying it with the assessed value.
How does the middle TN tax rate compare with the state and national average?
The average American homeowner pays $2,471 on property taxes for their home. As mentioned, the average for Tennessee specifically is $1,220, which is significantly lower. The property tax rates in middle Tennessee are similar to the state average and significantly lower than the national average. This makes the middle Tennessee area a great place to purchase a home from a financial perspective. You can learn more about the property tax rates in your city by visiting tax-rates.org.