Does Tennessee Have a State Property Tax? What Amendment 2 Means If You're Moving Here

by Nik Shewmaker

Short answer: No. Tennessee has no statewide property tax, and as of November 3, 2026, voters wrote that into the state constitution. You'll still pay property tax to your county, and sometimes your city. Here's what changed, what didn't, and how to estimate a bill before you buy.

What did Tennessee voters just approve?

On November 3, 2026, Tennessee voters approved Amendment 2, which bars the General Assembly from imposing a state property tax. Unofficial results from the Secretary of State showed it passing about 67% to 33%.

Tennessee hasn't collected a statewide property tax since 1949. Until now, though, the legislature could have brought one back with a vote. The amendment takes that option off the table.

Does this lower my property tax bill?

No, and I'd rather you hear that from me now than be surprised at closing. Nothing about your county or city bill changes. Local governments set their own rates and still collect property taxes the same way they always have.

What the amendment gives you is certainty. If you're moving from a state where taxes stack up at several levels, you can plan around one fact: in Tennessee, property tax is local only.

How is property tax calculated in Tennessee?

The Tennessee Comptroller lays out the math in four parts:

Appraised value. Your county assessor sets it.
Assessment ratio. For a home, it's 25% of the appraised value.
Assessed value. Appraised value multiplied by 25%.
Tax rate. Set locally, stated per $100 of assessed value.

A round-number example, not a real county rate: a home appraised at $500,000 has an assessed value of $125,000. At a rate of $2.00 per $100, the yearly bill would be $2,500.

Rates differ by county and by city, and they change. Before you write an offer, look up the current rate with the county trustee or assessor where the home sits. Two homes at the same price in two different counties can carry very different tax bills.

What other taxes should newcomers plan for?

Income tax: Tennessee doesn't tax wages or salaries.
Sales tax: The state rate is 7%, and counties and cities add a local rate on top. This is where Tennessee makes up the difference, so expect it on everyday purchases.
Estate and inheritance tax: Tennessee has neither.

Is there property tax help for retirees and veterans?

Yes. The state funds a Property Tax Relief program for qualifying homeowners who are 65 or older, disabled, or disabled veterans, with income limits. Some counties and cities also offer a Property Tax Freeze for homeowners 65 and older who meet a local income limit. The freeze is a local option, so not every county has it. Your county trustee can tell you what's available and whether you qualify.

Frequently asked questions

Does Tennessee have a state property tax?

No. Property tax is collected only by counties and cities, and the state constitution now prohibits a statewide property tax.

Will Amendment 2 change what I pay on a home in Nashville, Franklin, or Hendersonville?

No. Your bill comes from your county and, in some places, your city. Those rates weren't affected.

Is Tennessee still a low-tax state for homebuyers?

It depends on how you earn and spend. You'll save on income tax and pay more in sales tax than many states charge. Run your own numbers, and talk with a tax professional about your situation.

Thinking about a move to Middle Tennessee?

My family is native to Middle Tennessee on both sides, and I've helped buyers and sellers close 235+ homes and $125M+ here since 2014. If you're comparing counties, I'll pull the current tax rate for any home you're considering so you know the real monthly cost before you fall in love with it.

Start with my Middle Tennessee relocation guide, read what buyers leaving high-tax states need to know, or see how Nashville's taxes compare for new residents.

Nik Shewmaker, REALTOR | Nashville's Nik | Real Broker
(615) 585-0022
It matters who you hire to represent you.

This article is general information, not tax or legal advice. Tax rates and program rules change. Confirm details with your county trustee, your county assessor, or a tax professional.