Fortunately, the state of Tennessee offers programs to help make property taxes more manageable, especially for elderly residents, people with disabilities, and veterans.

Tennessee's property tax relief program and property tax freeze offer financial assistance to eligible homeowners struggling to pay property taxes. This can be a great way to ease the financial strain of property ownership, especially for those on fixed incomes. Let's dive into the details of these programs.

For informational purposes only. Always consult with an attorney, tax, or financial advisor before proceeding with any real estate transaction.

Save On Property Taxes With These Tennessee Programs

• Property Tax Relief Program: Provides reimbursement of property taxes for seniors, disabled homeowners, disabled veterans, and surviving spouses of veterans.
  • Maximum value used for relief calculations is either $32,700 (seniors, disabled homeowners) or $175,000 (disabled veterans, surviving spouses)
  • Deadline to apply is 35 days after delinquency date
• Property Tax Freeze Program: Allows seniors to lock in property taxes at their first-year qualifying amount.
  • Tax amount may change if improvements increase home value or if homeowner moves
  • Not every city/county participates
  • Deadline to apply is 35 days after delinquency date

Property Tax Relief Program

The Property Tax Relief Program provides financial assistance to eligible populations, including people over 65, people with disabilities, veterans with disabilities, and surviving spouses of deceased veterans.

For each category, candidates are required to own their primary residence and provide proof of income from all sources. Approved applicants are still required to pay property taxes. Depending on eligibility, recipients may receive full or partial reimbursement for property taxes.

Age-Based Requirements

To apply, you must be 65 or older by the end of the tax year. You'll likely need proof of age, such as a driver's license or birth certificate, along with your application.

• Past Maximum Income: $37,530
• Past Maximum Market Value for Calculations: $32,700

Disability-Based Requirements

If you have a disability that meets the Disability Determination Services definition, you may qualify regardless of age. Claims must have been validated by 12/31 of the year in which you're applying for relief.

• Past Maximum Income: $37,530
• Past Maximum Market Value for Calculations: $32,700

Veteran-Based Requirements

Disabled veteran homeowners are eligible for relief as defined by the program. Surviving spouses of eligible veterans may also qualify. Service records, VA disability ratings, and similar forms can support your application. Disabled veterans must complete form F-16 to provide consent to information sharing from the VA.

• Past Maximum Income: N/A
• Past Maximum Market Value for Calculations: $175,000

Income Limits

Tennessee sets a combined annual income limit for all household members. Income includes sources like Social Security, wages, pensions, etc. Disabled veterans and their surviving spouses are exempt from this income limit. Proof of income can be provided with a copy of a tax return, 1099, or W-2.

Residency and Property Ownership

You must be a Tennessee resident and own the home for which you seek relief. The property must be your primary residence. If you own a mobile home that qualifies as your primary residence, you might still be eligible for relief even if you don't own the land surrounding the house.

The Application Process

Your county trustee's office is the starting point for the application. Additionally, the city-designated collecting official may accept applications if your property is within city limits. Contact information is also on the state's official websites.

Deadlines are critical! They're usually about 35 days after the tax bill due date. You must complete your taxes by this deadline, even if you apply for reimbursement. Take advantage of this window, or you may not receive relief for that tax year.

How Relief is Calculated

Calculating your relief amount involves a few factors:

• Property assessment: Your home's assessed value plays a significant role. This isn't the same thing as your home's market value; it's a calculation specifically for tax purposes.
• County or city tax rate: Local tax rates determine how much you owe.
• Maximum market value: Your relief is based on a portion of your property's value—a maximum of $32,700 for seniors and disabled homeowners or $175,000 for disabled veterans and their surviving spouses in 2025.

Suppose your home is assessed at $150,000, and your county tax rate is 2%. If you're a senior homeowner, your relief calculation would be based on the first $32,700 of your home's value. Keep in mind that relief calculations adjust annually.

Property Tax Freeze Program

The Property Tax Freeze Program is a big part of property tax relief for seniors in Tennessee. It offers eligible homeowners the ability to lock in the property taxes on their principal residence at the amount they owe in the year they first qualify for the program.

This base tax amount remains constant, regardless of future increases in property tax rates or county-wide reappraisals, as long as the homeowner continues to meet the criteria that determines eligibility for the program. This ensures that qualifying homeowners, typically on fixed incomes or with limited financial flexibility, do not face increased property tax burdens as tax rates or property values change.

However, it's important to note that not every city and/or county in the state participates in this program.

Eligibility for Tax Freeze

• Age Requirement: 65 or older.
• Income Limit: It's best to check with your county and city officials, as this changes.
• Primary Residence Requirement: Your property must be your primary home.

How the Tax Freeze Works

• Base Tax Amount: If eligible, your property taxes are locked in at the amount you paid in your first year of qualification.
• Situations Where Taxes May Increase: Even with the freeze, your taxes can go up if you make significant improvements that increase your property's value or sell the approved property and buy a new one.
• Participating Counties/Cities: 34 cities and 26 counties in Tennessee participate in the program.

FAQs About Tennessee Property Taxes

At what age do seniors stop paying property taxes in Tennessee?

Technically, seniors never stop paying property taxes. The Property Tax Relief Program is a reimbursement of some (or all) of a year's paid property taxes, not an exemption from paying them.

Who is exempt from property taxes in TN?

No residential homeowner is exempt, but those meeting certain eligibility requirements can have a reimbursement from the state's relief program.

An organization may be exempt if its application is approved by the Tennessee State Board of Equalization.

Is there a Tennessee homestead exemption?

Yes, but it is not related to property taxes. In Tennessee, the homestead exemption refers to a homeowner exempting a set amount of their home's equity in the event of bankruptcy or the death of a spouse. That amount maxes out at either $35,000 for an individual homeowner or $52,000 for joint ownership.

Note that the amount is subject to change—these numbers were implemented in 2022.

For informational purposes only. Always consult with an attorney, tax, or financial advisor before proceeding with any real estate transaction.

Understanding Tennessee's Property Tax Relief Programs

Even in counties with low property taxes, Tennessee's property tax relief programs can benefit eligible homeowners. Tennessee generally boasts a lower cost of living than many other states, and these programs take an additional step to support affordability. A key point to remember is that some research and proactive action can go a long way in saving you money.

By staying informed and understanding the resources available, you can ease your property tax burden and achieve more financial breathing room.