Tennessee Mortgage Calculator
Tennessee taxes residential property on just 25% of its market value, then applies your county’s rate to that reduced number, which is a big part of why Tennessee’s effective property tax rates rank among the lowest in the Southeast. This Tennessee mortgage calculator uses real county-level tax data instead of one flat statewide number, so your estimate reflects Nashville, Memphis, Knoxville, or wherever you’re actually buying.
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Statewide Average Spotlight
No state income taxThis is Tennessee’s statewide blended average. Your actual rate depends heavily on which of the state’s 95 counties you buy in.
Your Estimated Monthly Payment
Payment breakdown
Balance vs. interest paid over time
Enter your details above to see a plain-language read on your payment.
What If You Paid Extra Toward Principal?
Slide to test an extra monthly payment and see how many years and how much interest it saves.
What If Your Rate Changes?
| Rate scenario | Interest rate | Monthly P&I | Difference |
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Your 5-Year Equity Projection
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Why Tennessee’s 25% Assessment Ratio Matters
Tennessee doesn’t tax your home on its full market value. Instead, residential property is assessed at 25% of appraised market value, and your county’s tax rate is applied to that reduced assessed figure. A $340,000 home is assessed at $85,000, not $340,000. Combined with no state income tax, this is a major reason Tennessee’s effective property tax rates rank among the lowest in the Southeast, even in fast-growing markets like Nashville and Franklin. The spotlight panel above shows exactly what your assessed value would be at 25% of your entered home price.
Tennessee Property Tax by County: The Real Spread
| County | Effective rate | Notes |
|---|---|---|
| Sevier (Smokies) | 0.28% | Lowest in the state, large tourism tax base |
| Cumberland | 0.31% | Cumberland Plateau, affordable |
| Williamson (Franklin) | 0.40% | Highest median home values, low effective rate |
| Knox (Knoxville) | 0.43% | Below statewide average despite size |
| Rutherford (Murfreesboro) | 0.48% | Just below statewide average |
| Davidson (Nashville) | 0.60% | Consolidated city-county government |
| Hamilton (Chattanooga) | 0.62% | Along the Tennessee River |
| Shelby (Memphis) | 0.98% | Highest effective rate in the state |
Property Tax Relief for Seniors, Disabled Homeowners, and Veterans
Tennessee runs a state-reimbursed Property Tax Relief Program rather than a traditional exemption. Homeowners 65 or older, or totally and permanently disabled, with household income near the state’s annually-adjusted limit (roughly the high $30,000s for the current program year), can have the state pay the tax on a set portion of their home’s market value directly to the county. Disabled veterans with a 100% service-connected disability, and qualifying surviving spouses, get a more generous version covering the tax on the first $175,000 of market value, with no income test. Because these figures move with the Social Security cost-of-living adjustment each year, confirm the current numbers with your County Trustee’s office before counting on a specific dollar figure.
Tennessee Does Not Have a General Homestead Exemption
Unlike many states, Tennessee doesn’t offer a blanket homestead exemption available to every owner-occupant. The “homestead exemption” some people search for in Tennessee actually refers to a bankruptcy and creditor-protection statute, not a property tax reduction. If you’re not 65+, disabled, or a qualifying veteran, there isn’t a general senior-style discount waiting for you here; the Property Tax Relief Program above is the main targeted option.
Tennessee’s Real Estate Transfer Tax
Tennessee charges a state real estate transfer tax of $0.37 per $100 of the sale price, an effective rate of about 0.37%, due at closing. Depending on how the purchase contract is written, this can be paid by the buyer, the seller, or split between them, so it’s worth clarifying in your offer rather than assuming.
Reappraisal Cycles Can Cause Sudden Jumps
Tennessee counties reappraise property values on a 4, 5, or 6-year cycle rather than annually. Between reappraisals, your assessed value generally stays flat unless you make physical changes to the property. But in a reappraisal year, especially after a run of rising home prices, jumps of 20 to 40 percent in market value are common, which can meaningfully change your tax bill even if the county’s rate itself doesn’t move.
Frequently Asked Questions
Does Tennessee have a state income tax?
No. Tennessee has no state income tax, which is part of why property tax and sales tax carry more of the funding burden for schools and local government here.
How does Tennessee’s 25% assessment ratio work?
Residential property is taxed on 25% of its appraised market value, not the full price. A $300,000 home is assessed at $75,000, and the county’s rate is applied to that reduced figure.
Why do Tennessee property tax rates vary so much by county?
Each of Tennessee’s 95 counties, and cities within them, set their own rates to fund schools and local services, producing effective rates that range from under 0.3% to nearly 1% depending on the county.
Does Tennessee have a homestead exemption?
Not a general one. What’s sometimes called a Tennessee homestead exemption is actually a bankruptcy and creditor-protection statute, not a property tax discount. Property tax relief in Tennessee is targeted at seniors, disabled homeowners, and disabled veterans.
Is there property tax relief for seniors in Tennessee?
Yes. Tennessee’s state-reimbursed Property Tax Relief Program pays the tax on a set portion of home value for qualifying homeowners 65 or older or totally and permanently disabled, subject to an annually-adjusted income limit. Disabled veterans and qualifying surviving spouses get a more generous benefit with no income test.
What is Tennessee’s real estate transfer tax?
A statewide fee of $0.37 per $100 of the sale price, about 0.37%, paid by the buyer or seller depending on the purchase contract.
How accurate is this mortgage calculator with taxes and insurance?
The principal and interest math is exact. County tax figures reflect published effective rates, while insurance and PMI are market-based estimates that may vary once a lender underwrites your loan.
Should I choose a 15-year or 30-year mortgage in Tennessee?
A 15-year term carries a lower rate and less total interest but a higher payment. A 30-year term keeps payments lower and more flexible, which is why most buyers choose it.
Does this calculator include Tennessee’s transfer tax or closing costs?
No. This tool focuses on your ongoing monthly payment. The transfer tax and other closing costs are separate, one-time expenses due at signing.
References
- Tennessee Comptroller of the Treasury, Property Tax Relief Program – comptroller.tn.gov/property-assessment-services/tax-relief.html
- Consumer Financial Protection Bureau, Owning a Home resources – consumerfinance.gov/owning-a-home
- U.S. Department of Housing and Urban Development, homebuying guidance – hud.gov/topics/buying_a_home
Related State Mortgage Calculators
Comparing Tennessee against neighboring or similarly-structured markets? These calculators use the same real tax-data approach:
Related DexoCalc Tools
This Tennessee mortgage calculator sits inside a wider set of financial planning tools on DexoCalc.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed mortgage professional. County tax rates, the 25% assessment ratio, relief program figures, and transfer tax figures reflect published rates and law at time of writing and can change; confirm exact current figures with your county assessor, the TN Comptroller’s Office, and your insurance provider. Sources: TN Comptroller’s Office, CFPB.