Tennessee housing costs at a glance
| Tennessee | |
|---|---|
| Median home value (Zillow) | $337,000 |
| Average effective property tax | 0.46% |
| Typical rate for a new buyer (calculator default) | 0.6% |
| Average homeowners insurance ($300k dwelling) | $3,096 a year |
| 2026 conforming loan limit (one unit) | $832,750 |
Example: median-priced home
Tennessee home for $337,000, 20% down, 6.5% 30-year fixed: principal and interest $1,704 + property tax $168 + insurance $258 = about $2,131 a month. Enter your own rate quote and the actual tax rate of the property for a precise figure.
Tennessee property tax
Tennessee taxes homes on 25% of their appraised value. The average effective rate is low, about 0.46% of value: around 0.6%–0.8% in Nashville and much higher in Memphis, where city and Shelby County taxes add up to about 1.5%. Counties reappraise every four to six years.
Tennessee closing costs
- Transfer tax: $0.37 per $100 of the price (0.37%), customarily paid by the buyer.
- Mortgage tax: $0.115 per $100 of the loan amount above $2,000, also paid by the buyer.
- Insurance: about $3,100 a year on average, because of tornadoes, hail and storms.
- No income tax on wages; see the Tennessee paycheck calculator.
Other states
See also the Tennessee paycheck calculator and mortgage costs in other states.
Frequently asked questions
What is the property tax rate in Tennessee?
About 0.46% of home value on average; about 0.6% to 0.8% in Nashville and about 1.5% in Memphis.
What is the monthly payment on a median-priced Tennessee home?
On a $337,000 home with 20% down at 6.5%, principal and interest are about $1,704; with property tax and insurance the total is about $2,130 a month.
Who pays the transfer tax in Tennessee?
Customarily the buyer: $0.37 per $100 of the price, plus a mortgage tax of $0.115 per $100 of the loan.
Why is home insurance expensive in Tennessee?
Frequent severe storms, tornadoes and hail; the average premium is about $3,100 a year.
For information only; not a loan offer. Property tax, insurance and closing costs depend on the specific property and lender.
Sources
- Tennessee Comptroller – property assessment
- FHFA – 2026 conforming loan limits
- U.S. Census Bureau ACS 2024 – real estate taxes (via NAHB / Construction Coverage)
- Zillow Home Value Index
- Insurify – home insurance by state
Rules checked: October 2026