A median Tennessee home costs $332,600 (29th of 51). Borrowing 80% at 7.40% gives $2,104.45 per month once $124.75 of tax and $137.42 of insurance are added to $1,842.28 of principal and interest; at 5% down with PMI, budget $2,581.53.
Homestead exemptions and property tax relief
Tennessee does not exempt part of a home's value. Instead, its Property Tax Relief Program reimburses low-income homeowners who are 65 or older or disabled, and disabled veterans, for part or all of the tax they paid on their home. Some counties and cities also offer a tax freeze for qualifying seniors.
First-time buyer programs
The Tennessee Housing Development Agency's Great Choice mortgage can be paired with Great Choice Plus down payment assistance: $6,000 (or $10,000 in some cases) as a 0% deferred second loan, forgiven after 10 years if the home is not sold or refinanced. Homebuyer education is required.
Transfer and recording taxes
Tennessee charges a transfer tax of $0.37 per $100 on the deed, about $1,231 on a $332,600 home, and a mortgage tax of $0.115 per $100 of the loan above $2,000, about $304 on a $266,080 loan. Your contract decides who pays.
Closing costs to plan for
The recording taxes add about 0.5% of the price to buyer costs, which surprises buyers moving from states without a transfer tax. Add lender, title and prepaid charges.
When property tax bills are due
Tennessee property taxes can be paid from the first Monday in October through February 28 without interest; from March 1, interest runs at 1.5% a month. County trustees collect the tax, and many cities bill a separate city tax, so a home inside city limits can get two bills.
Before you buy in Tennessee
Counties reappraise on cycles that historically run four, five or six years, and a reappraisal can change your value a lot. Ask when the county last reappraised. Tennessee's tax relief program is a reimbursement, not an exemption: lower-income owners who are elderly or disabled, and disabled veterans, apply through the county trustee or city collector and get part of the tax paid back. The $0.37 per $100 transfer tax and the mortgage tax are split however the contract says, so check who pays before you budget your cash to close.
2026 loan limit in Tennessee
FHFA 2026 one-unit conforming limits: high-cost limits apply in 14 of 95 counties, as high as $1,029,250 (Cannon County, Cheatham County, Davidson County and 11 more). The typical $266,080 loan stays conforming.
Tennessee numbers used above
| Measure | Tennessee | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $332,600 | $360,600 |
| Effective property tax rate | 0.45% (47th highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $1,649 | $1,737 |
| Median household income | $71,997 | $81,604 |
| Median gross rent | $1,284 | $1,487 |
| Income needed at 28% (20% down) | $90,191 | – |
Frequently asked questions
When are Tennessee property taxes due?
From the first Monday in October through February 28. Interest starts March 1.
How often are Tennessee homes reappraised?
On county cycles that have historically run four, five or six years.
How does Tennessee property tax relief work?
Qualifying elderly, disabled and disabled-veteran owners get part of the tax reimbursed. Apply through the county trustee.
What is the median-home payment in Tennessee?
About $2,104.45 a month on a $332,600 home with 20% down at 7.40%, including tax and insurance.
Sources
- TN Comptroller, tax relief
- TN Comptroller, assessment schedule
- TN Department of Revenue, recordation tax rates
- TN Comptroller, property tax relief
- THDA down payment assistance
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · Tennessee paycheck