Tax Rates & Calculator

State law requires that a Certified Tax Rate (CTR) be set after each Mass Reappraisal to prevent local governments from realizing a windfall in tax revenues as a result of the Reappraisal. The law, also known as “The Truth in Taxation Law,” provides that the CTR must not raise more revenues on existing construction than in the prior tax year, thereby being revenue neutral.

Increased revenue is realized from “new” construction. Only in a reappraisal year does the Office of Assessments participate in establishing the CTR by providing critical data to the State of Tennessee to set a CTR that is approved by the Mayor and the Metropolitan Council.

Keep in mind that the Mayor and/or the Metropolitan County Council can set the CTR, then hold a public hearing and raise the rate. To date, this was done five times, but not during the prior three reappraisals in 2009, 2013 and 2017. Also note that if the market falls, that same CTR law could result in a CTR higher than the prior year.

Davidson County has two primary tax rate districts—the General Service District (GSD) and the Urban Service District (USD). The USD tax covers the more extensive services provided to property owners, such as garbage pick-up, street lights and sidewalk provisions not provided to those in the GSD. In the GSD, which are the areas beyond the USD boundary, a property owner would pay individually for these additional services.

There are several other smaller tax districts as a result of “satellite cities” located within the GSD (Ridgetop, Goodlettsville, Belle Meade, Berry Hill, Forest Hills and Oak Hill). Taxable properties in these small incorporated municipalities are subject to the GSD tax rate plus the satellite city’s 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 your taxing district as GSD, USD or satellite city.

The Central Business Improvement District (CBID) was established by Metro Ordinance in 1999. The CBID is an annual assessment fee in the form of a tax from the Nashville District Management Corporation, a 501 (c) (3) of privately-owned properties within the CBID boundaries. Learn more about the CBID.

The 2017 approved rate for the CBID is $0.001294 per dollar of assessed property value. See Ordinance No. BL2017-788

The Gulch Business Improvement District (GBID) was established by Metro Ordinance in 2006. The GBID is an annual assessment fee in the form of a tax from the Nashville District Management Corporation, a 501 (c) (3) of privately-owned properties within the GBID boundaries. Learn more about the GBID.

The 2017 approved rate for the GBID is $0.1081 per $100 of assessed property value. See Ordinance No. BL2017-787 

A change in the rate of levy of such special assessment may be initiated only by a resolution from the District Management Corporation. Upon receipt of this resolution, the Metropolitan Council must hold a public hearing on whether there should be a change in the rate of levy for the special assessment, and no such change shall become effective unless and until it is approved by an ordinance enacted by the Metropolitan Council.

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

(1) CLASSIFICATION (2) APPRAISED VALUE (3) ASSESSED VALUE and (4) APPLICABLE TAX RATE

1. CLASSIFICATION is determined by the use of the taxable property under Tennessee law as residential/farm, commercial/industrial, public utility or personal property.
2. 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.
3. ASSESSED VALUE is calculated by multiplying the appraised value by the assessment ratio. The assessment ratio for each classification of property is established by Tennessee Constitution Art.2, § 28 and TCA § 67-5-801 state law as follows:

4. APPLICABLE TAX RATE for each county and municipality is set by the mayor and the legislative body of the 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 following example is for a residential property with an Appraised Value of $350,000 and with the 2022 USD Tax Rate of $3.254 per $100 of assessed value or $0.03254.

If your property is in the GSD, or a satellite city, follow the same steps using the tax rate appropriate to the property’s address to calculate your tax bill.