Tax Rates & Calculation

Certified Tax Rate

To prevent local governments from realizing a windfall in tax revenues because of a reappraisal, state law requires that a Certified Tax Rate (CTR) be set after each mass reappraisal. The law, also known as “The Truth in Taxation Law,” provides that the certified tax rate must not raise more revenues — except on new construction – than in the prior tax year.

The CTR for 2017 has not been set by the Metro Council. They will vote on and set the tax rate in late June but no later than July 1st.

Keep in mind that the Metropolitan County Council can set the CTR, then hold a public hearing and raise the rate. This was done five times here, but not during the prior two reappraisals. Also note that if the market falls, that same CTR law could result in a certified rate higher than the prior year.

Property Tax Rates For 2016 – Payable Before March 2017

  • GSD – $3.924* per $100 Assessed Value
  • USD – $4.516* per $100 Assessed Value

*In 2013, Metro Finance added a third decimal place to the tax rate to ensure an accurate distribution between USD and GSD funds. The formula for calculating the USD rate is: $3.924 (GSD core) + $0.592 (USD addition) = $4.516 (USD total).

More information about the different tax districts:

The additional USD tax covers the more extensive services not provided to those in the GSD outside of the USD boundary, who pay only the basic GSD rate. USD services include: additional police and fire protection, sidewalks, street lighting, and garbage pickup.

There are several other tax districts as a result of “satellite cities” within the GSD (Ridgetop, Goodlettsville, Belle Meade, Berry Hill, Forest Hills, and Oak Hill). Property in these small incorporated municipalities are subject to the Metro GSD tax rate plus the city rate, if any, as adopted by the legislative bodies of those cities. Services provided by the satellite cities may differ from jurisdiction to jurisdiction.

Your assessment notice has a “Tax Jurisdiction” box which indicates if you are singly in the GSD district or if you are subject to the USD or satellite city taxes. After you have determined which taxing jurisdiction in which your property is located, select the calculator below.

How To Calculate Property Taxes

Property Taxes in Tennessee are calculated utilizing the following four components:

CLASSIFICATION BY USE RATIO

APPRAISED VALUE

ASSESSED VALUE

APPLICABLE TAX RATE

CLASSIFICATION is determined by the use of the taxable property. When a property is added to the tax rolls and becomes taxable, it is classified under Tennessee law in one of the classifications shown below.

The APPRAISED VALUE of each taxable property is an estimate of market value based on established set of tables, manuals, and procedures mandated by state statute to provide equal treatment of all properties in the jurisdiction for tax purposes.

The ASSESSMENT RATIO for each different class of property is established by Tennessee Constitution Art.2, § 28 and TCA § 67-5-801 state law as follows:

Real Property Personal Property
Property Classification Ratio Property Classification Ratio
Residential/Farm 25% Commercial/Industrial 30%
Commercial/Industrial 40% Public Utility 55%
Public Utility 55%
The ASSESSED VALUE is calculated by multiplying the appraised value by the assessment ratio.

The TAX RATE for each county and municipality is set by the legislative body of counties and municipalities based on the amount budgeted to fund services. These tax rates vary depending on the level of services provided and the total value of the county’s tax base.

The example below is for a typical residential property with an Appraised Value of:$ 80,000 and with the 2016 Davidson County Tax Rate:

$3.924 per $100 of assessed value or .03924

Step 1: Multiply the Appraised Value times the Assessment Ratio

$ 80,000 X 25% = $ 20,000

This gives you the property’s Assessment Value

Step 2: Multiply the Assessment Value times the Tax Rate

$ 20,000 X (3.924/100) = $ 784.80

or

$ 20,000 X .03924 = $ 784.80
This gives you the amount of the county property tax bill for this particular property.

*If your property is also in the USD, or a Satellite City, follow the same steps using the tax rate appropriate to the property’s address to figure your tax bill.
*The billing amount you receive on your actual tax bills may vary slightly based on the method used for rounding.

Note: The calculator is currently unavailable. Once the 2017 tax rate is set by the Metro Council, no later than July 1st, the calculator will be functional.

Calculator

Property Location
Property Classification
County Tax Rate $
Appraised Value $
Estimated Property Tax $

Local Tax Rates

GSD USD
Year Tax Rate Year Tax Rate
2016 $3.924 2016 $4.516
2015 $3.924 2015 $4.516
2014 $3.924 2014 $4.516
2013 $3.924 2013 $4.516
2012 $4.04 2012 $4.66
2011 $3.56 2011 $4.13
2010 $3.56 2010 $4.13
2009 $3.56 2009 $4.13
2008 $4.04 2008 $4.69
2007 $4.04 2007 $4.69
2006 $4.04 2006 $4.69
2005 $4.04 2005 $4.69
2004 $3.84 2004 $4.58
2003 $3.84 2003 $4.58
2002 $3.84 2002 $4.58
2001 $3.84 2001 $4.58
2000 $3.39 2000 $4.24

Years in italic were Reappraisal years.

*2013 is the first year that Metro has added a third decimal place to the tax rate. This is to ensure an accurate distribution between USD and GSD funds.

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