Tennessee Property Tax and Income Tax, Explained for Californians (2026)

How a Tennessee property tax bill is figured

The Tennessee Comptroller lays out the steps on its How to Calculate Your Tax Bill page:

1. Appraised value. The Comptroller says: "The Appraised Value for each taxable property in a county is determined by the county property assessor."
2. Assessed value. The Comptroller lists "residential and farm @ 25% of appraised value."
3. Tax rate. "The Tax Rate for each county is set by the county commission based on the amount of monies budgeted to fund the provided services."
4. The bill. "To calculate the tax on your property, multiply the Assessed Value by the Tax Rate."

The Comptroller's own example. The Comptroller's page works through a $400,000 home. At 25%, its assessed value is $100,000. With a county rate of $2.50 "per hundred dollars of assessed value," the Comptroller's example tax is $2,500. This is the Comptroller's example, not a quote for any home, and your county's rate will differ. Ask the county assessor or trustee for the real figures for a specific address.

When values are updated

Counties reappraise property on a set cycle, and the cycle differs by county. Your county property assessor can tell you when the next reappraisal is.

The January 1 date

The Comptroller says: "All ownership records, assessments, and tax maps must reflect the status of property as of January 1 of each tax year." Ask your closing team how that date affects the first tax year of your purchase.

How this compares with California

California's system works differently. California's Board of Equalization explains that "property taxes are based on the assessed value of a property at the time of acquisition," and that a change in ownership means the property is reassessed "to its current fair market value as of the date ownership changed." In Tennessee, the county assessor reappraises homes on a regular cycle, whoever owns them.

Don't assume the two bills work the same way. Ask the county where you're buying for the specifics.

The tax freeze for homeowners 65 and older

Some Tennessee counties and cities offer a property tax freeze. The Comptroller's page describes it as a local option program "for taxpayers 65 years of age or older," available only in counties or cities that adopt it.

Under the Comptroller's description, homeowners must:

• "Own their principal place of residence in a participating county and/or city,"
• "Be 65 years of age or older by the end of the year in which the application is filed," and
• have income under the county limit.

You apply "annually to the County Trustee or city collecting official."

What this means for someone moving to Tennessee. The Comptroller says the freeze's base changes "When the homeowner sells their home and purchases another residence." So the freeze is tied to the home. If you buy a Tennessee home, ask the county trustee how and when your base would be set.

Relief for low-income older and disabled homeowners, and for disabled veterans

The Comptroller's Property Tax Programs page says: "Tennessee state law provides for property tax relief for low-income elderly and disabled homeowners as well as disabled veteran homeowners or their surviving spouses."

Ask the county trustee for the deadline and the forms. Whether you qualify depends on your own situation and the program's rules.

Recordation taxes when you buy

The Tennessee Department of Revenue explains on its Recordation Taxes page: "Recordation tax is a tax on two separate privileges: realty transfer tax and mortgage tax."

• Realty transfer tax. "The grantee or transferee to the county Register of Deeds pay the realty transfer tax." The grantee is the buyer.
• Mortgage tax. It is "imposed on the recordation of instruments evidencing indebtedness such as mortgages, deeds of trust..." and "is paid by the debtor," which means the borrower.

We don't list the rates here, because they are set by law and can change. Ask your lender for a Loan Estimate and your closing team about the recordation taxes on your purchase. The Department of Revenue's page has the current details.

Income tax: what Tennessee's Hall tax was

The Department of Revenue's Hall income tax page says: "The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock." It also says: "The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later."

So the Hall tax applied only to interest and dividends, never to wages, and it was repealed for tax periods beginning January 1, 2021 or later. For anything beyond that, such as your California return in the year you move, a tax professional can give you an answer for your own situation. Our moving guide covers the California side, including the Franchise Tax Board's part-year resident rules.

What this means for your loan

Property tax and recordation taxes are part of what a Tennessee home costs, and your lender will ask about them as part of your loan. We can walk through the loan with you. For the numbers on a particular home, ask the county and a tax professional.

The bottom line

Tennessee figures property tax with a short formula: the assessor sets the value, residential property is assessed at 25%, the county commission sets the rate, and you multiply. Counties may offer a freeze for homeowners 65 and older, and the state has relief programs for some low-income older and disabled homeowners and for disabled veterans. You'll pay a transfer tax, and a mortgage tax if you finance, when you buy. The Hall income tax applied only to interest and dividends, and it was repealed for tax periods beginning January 1, 2021 or later. We can walk you through the loan side, and a tax professional can answer the rest for your own situation.

Questions buyers ask