There are few things certain in life, as the old saying goes. We can count on death…and taxes, right? Here’s another certainty for Nashville residents, at least for the foreseeable future: those taxes are gonna go up. We’ll talk about why in just a minute. First things first…
What to Expect When You’re Expecting a Nashville Tax Bill
Okay, the first thing you need to know is that your property tax is tied pretty tightly to the value of your home—but that doesn’t mean you apply the tax rate to the property value. And thank goodness! Those are numbers no one would ever want to see.
Instead, taxes are calculated like this:
- The county property assessor determines the property’s appraised value.
- The assessment ratio for the different property classes—which is established by state law—is then applied.
- The assessed value is calculated by multiplying the appraised value by the assessment ratio.
- The tax rate for the county is then multiplied by the assessed value.
And that’s a lot of math. Boooooo. But at least you get an idea of what kind of tax bill you’ll be looking at when it arrives.
Comparing Nashville’s Property Taxes to Other Cities
If you’ve lived in Nashville most of your life, the recent rise in taxes may have you grumbling. If, however, you’re moving to Nashville from other cities, the property taxes in Nashville might just be a breath of fresh air.
Generally speaking, the Nashville property tax rate is one of the more affordable in the nation—but again that all depends on your perspective. That’s because, however explosive the latest growth has been in Nashville, it’s still a city on the rise. Tourism dollars and other income sources help to temper the property tax but we’re not yet on the level of some of the wealthiest and most desirable cities, such as Charleston, SC; Honolulu, HI; or Boston, MA.
Comparing Property Taxes Within Nashville Suburbs
Now, we’ve been speaking pretty generally to this point, with “Nashville” sort of working as a stand-in for the entire metropolitan area. When we really dig into the different suburbs and neighborhoods that make up the Greater Nashville Area, we start to see a few differences emerge.
Just thirty minutes from downtown Nashville, the town of White Bluff offers a property tax rate of .55 per $100 of assessed value. Mount Juliet, which is even closer to the city, boasts a .11 per $100 rate. Of course, these could all look a little different by this time next year, but that’s not really the point here.
The point is that it’s important to consider the property taxes in Middle Tennessee towns before you make a home purchase. You definitely don’t want a shock when tax time rolls around. As you can see, there is a wide range of rates to consider when you’re choosing whether you’ll live near downtown or thirty minutes from the city.
Don’t worry too much, though. I’ll make sure to walk you through the various options. Your chosen lender will also have some tips to help you avoid any sticker shock. The important thing is just to know to ask… And now you do.
If you have questions or want to see what’s available in some of the areas with lower tax rates, just reach out.
