Real Property Tax

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Real Property Tax

Reference Number: MTAS-1843
Reviewed Date: 09/18/2026

Revenue Class: Local Taxes

Fund: General

Account No.: 31111

Description: Ad valorem taxes levied within the municipality based on property appraisals.

Authorization: Article II, Section 28 of the Tennessee Constitution; T.C.A. § 67-1-701 et seq.; T.C.A. § 67-5-101 et seq.; T.C.A. § 67-5-801 et seq.

Requirements or Restrictions: Reference T.C.A.

Current Rate: Statutes provide that the following percentages of full value be used to determine assessments:

  • Public utility real property, 55 percent (see Public Utility Property Tax, Account # 31120);
  • Industrial and commercial real property, 40 percent;
  • Residential and farm real property, 25 percent.

Frequency of Payment: Annually, between the first Monday in October and before the following March 1, unless the municipality is authorized to establish other due dates.

Late Pay Penalty: See Interest on Property Taxes, MTAS-1847 (https://www.mtas.tennessee.edu/reference/interest-delinquent-property-taxes

Exemptions: All government, religious, charitable, scientific, literary and educational properties are exempt (Article II, Section 28 of the Tennessee Constitution and T.C.A. § 67-5-201 et seq.). Tax relief is offered to certain disabled and elderly home owners (Article II, Section 28 of the Tennessee Constitution and T.C.A. § 67-5-701 et seq.) and cities may provide by ordinance a tax freeze for qualified taxpayers over 65 years of age on their principal place of residence.

Collection: Property taxes are usually paid directly to the municipality. Some counties collect taxes for their municipalities, as in T.C.A. § 67-1-702 and § 67-5-1801(a). Taxes cannot be collected after ten years from April 1 of the year following the year they become delinquent. T.C.A. § 67-5-1806.

Public Chapter 913, effective January 1, 2026 allows for the acceptance of partial payment of delinquent property taxes.  Before an entity can begin to accept partial payments it must file a plan with the Tennessee Comptroller of the Treasury. The Act requires that the partial payments be applied to delinquent taxes, statutory fees and court costs on a pro-rata basis detailed in the act. The Comptroller must develop guidelines for the implementation of plans for the acceptance of partial payments

Use Restrictions: None.


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