Nashville Property Tax Rates: Residential vs. Commercial (2024)

For the 2024 tax year, the Metropolitan Government of Nashville and Davidson County sets the following property tax rates:

• Residential Property: $2.7729 per $100 of assessed value
• Commercial Property: $2.8166 per $100 of assessed value

How It Works

Assessed Value ≠ Market Value. In Tennessee, residential property is assessed at 25% of appraised market value; commercial/industrial at 40%.

Example Calculation (Residential):
Home appraised at $500,000 → Assessed value = $125,000 (25%)
Tax = ($125,000 ÷ 100) × $2.7729 = $3,466 annually

Example Calculation (Commercial):
Property appraised at $1,000,000 → Assessed value = $400,000 (40%)
Tax = ($400,000 ÷ 100) × $2.8166 = $11,266 annually

Important Context

• Rates are set annually by the Metro Council (typically June/July for the tax year starting January 1).
• The Urban Services District (former City of Nashville) and General Services District (former Davidson County) have different additional rates for services like fire, schools, transit. The above are the General Services District base rates.
• Relief programs exist for elderly, disabled, and disabled veteran homeowners.
• Appeals: Property owners can appeal appraisals to the Metro Board of Equalization (typically April–June).

Always verify current rates and district applicability with the Metro Nashville Finance Department before making financial decisions.