Welcome to Nashville, Tennessee! As you settle into your new home, it’s important to understand how property taxes work in Davidson County. In this article, I’ll explain how property taxes work and what you can expect when it comes time to pay.
First, let’s start with the basics. Property taxes are fees that homeowners pay to the local government based on the assessed value of their property. In Davidson County, property tax statements are generated from the Tax Roll and mailed to property owners the first week of October each year. The tax collection period runs from October through February of the following year.
It’s important to note that any taxes not paid in full by the last day of February are subject to interest under the law of the State of Tennessee. However, you can make partial payments during the tax collection period. Just keep in mind that the total tax must be paid by the last day of February to avoid any interest charges.
How is the amount of property tax you owe calculated? The Metropolitan Council sets the property tax rate each year. The current tax rate is $3.254.
For residential properties, the property tax is based on the assessed value, which is 25% of the appraised value.
Example
If your home is appraised at $1,000,000, the assessed value would be $250,000. To calculate the property tax, you would multiply the assessed value by the tax rate. In this case, your property tax would be $8,135 ($250,000 x $3.254).
It’s worth noting that property tax is an important source of revenue for the Metropolitan Government. In fact, more than 50% of the entire operating budget is funded by property taxes.
Fun fact:
Throughout Davidson County, there are 24,340 parcels of commercial property and 235,234 residential parcels subject to property tax. However, there are also 5,644 parcels that are tax exempt.
What happens if you don’t pay your property taxes on time?
The Office of the Trustee and its Division of Collections processes and collects all delinquent taxes from March through the following February. Delinquent taxes are then collected by the Clerk and Master’s office.
Final Thought
As a home owner in Nashville, it’s important to understand how property taxes work and when they are due. If needed, you can make partial payments during the tax collection period, but the total tax must be paid by the last day of February to avoid interest charges. And I know nobody enjoys paying property taxes, but remember that you’ll be helping to fund important services and programs that benefit and grow our community.