How to Figure Your Property Tax Bill
Property taxes in Tennessee are calculated utilizing the following four components:
- APPRAISED VALUE
- ASSESSMENT RATIO
- ASSESSED VALUE
- TAX RATE
The APPRAISED VALUE for each taxable property in a county is determined by the county property assessor.
The ASSESSMENT RATIO for the different classes of property is established by state law (residential and farm @ 25% of appraised value, commercial/industrial @ 40% of appraised value and personalty @ 30% of appraised value).
The ASSESSED VALUE is calculated by multiplying the appraised value by the assessment ratio.
The TAX RATE for Davidson County is set by the Metro Council based on the amount of monies budgeted to fund the provided services. These tax rates vary depending on the level of services provided and the total value of the county’s tax base. The tax rates are not final until certified by the State Board of Equalization.
To calculate the tax on your property, assume you have a house with an APPRAISED VALUE of $100,000. The ASSESSED VALUE is $25,000 (25% of $100,000), and the TAX RATE has been set by the Metro Council at $4.221 (Urban Services District) or $3.788 (General Services District) per hundred of assessed value. To figure the tax simply multiply the assessed value ($25,000) by the tax rate of $4.221 or $3.788 per hundred dollars assessed.
Urban Services District Tax Rate $4.221
$25,000 / 100 = 250 x $4.221 = $1,055.25
($25,000 x .04221 = $1,055.25)
for a tax bill of $1,055.25
General Services District Tax Rate $3.788
$25,000 / 100 = 250 x $3.788 = $947.00
($25,000 x .03788 = $947.00)
for a tax bill of $947.00