Tennessee real estate: property tax, closing costs & insurance
Tennessee has no state income tax at all (the Hall tax on investment income was fully repealed in 2021) and assesses residential property at just 25% of value, keeping effective property tax rates among the lowest this calculator covers.
Property tax in Tennessee
The effective rate runs about 0.58% of assessed value. Residential property is assessed at 25% of market value before that rate applies, so the millage number quoted locally is not applied to the full price. Residential assessed at 25%.
Transfer tax & closing costs
$0.37/$100 customarily buyer. Recording runs a flat $40. Title insurance is customarily paid by the buyer, with a minimum owner’s premium of $200.
Insurance & capital gains
Tornado alley uplift. No income tax (Hall tax repealed 2021).
Worked example: a $350,000 ARV flip in Tennessee
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$20,150
- Holding costs, 6 months−$2,493
- Target profit, 15%−$52,500
- Maximum Allowable Offer$223,982
If you’re investing
With no state income tax, your investment return calculations don’t need a state tax haircut on rental income or capital gains — Tennessee is one of the cleanest states for pure federal-tax modeling.
If this is your home
Tennessee’s 25% residential assessment ratio means the millage rate you see quoted applies to a quarter of the home’s value, not the full price — the same "gotcha" as Georgia’s 40% ratio, just at a lower percentage.
Best suited for: Investors who want no state income tax and a low residential assessment ratio.
Tennessee FAQ
Does Tennessee have a state income tax?+
No. Tennessee fully repealed its Hall Tax on interest and dividend income in 2021 and has never had a broad-based wage income tax, making it a no-income-tax state for both rental income and capital gains.
See the exact number for your Tennessee property
Free for your first three properties. No credit card.
Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works