HonestCasa logoHonestCasa
All Tax Guides
Updated 2025 Tax Year

Houston County
Property Tax Guide

Everything you need to know about property taxes in Houston County, TN. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
Calculate Your True CostMortgage Calculator
Quick Facts
Tax Rate
Varies by district - Base county rate plus municipal and special district rates
Exemptions
4+ Available
Section 1

How Property Tax Works

Houston County, Tennessee operates under a property tax system that funds essential county services including education, public safety, infrastructure maintenance, and general government operations. Property taxes are assessed annually based on the appraised value of real estate and personal property within the county boundaries. The Tennessee State Board of Equalization oversees the assessment process to ensure uniformity and fairness across all counties.

The effective property tax rate in Houston County varies by location within the county due to different special taxing districts, municipal boundaries, and school district levies. Property owners may be subject to additional assessments for fire districts, utility districts, or municipal services depending on their specific location. The county uses an assessment ratio determined by the state, and property is typically reappraised on a regular cycle to maintain current market valuations.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
County General$1.50-2.00Basic county services, administration, public safety
County Schools$1.80-2.30Houston County school system funding
County Debt Service$0.15-0.25Bond payments for capital improvements
State Equalization$0.25State-mandated education funding
Fire Districts$0.10-0.30Rural fire protection services (varies by district)
Utility Districts$0.05-0.15Water/sewer district assessments (where applicable)

Note: Rates shown are estimates for FY 2025-2026 and vary significantly by special taxing district. The Houston County Commission sets final rates annually based on budget requirements. Contact the Houston County Assessor's office for exact rates applicable to your specific property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Houston County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Houston County are additional property tax assessments that occur when there are changes to property ownership, new construction, or improvements made after the annual assessment date. These taxes are calculated based on the difference between the old assessed value and the new assessed value, prorated for the remaining portion of the tax year.

Common triggers for supplemental taxes include: property sales that result in reassessment at current market value, completion of new construction or major renovations, additions of structures like garages or decks, and subdivision of property. For example, if you purchase a home in July that was previously assessed at $200,000 but now appraises at $280,000, you would receive a supplemental tax bill for the additional $80,000 in assessed value, prorated for the remaining 9 months of the tax year.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (25% assessment ratio): $75,000
  • Less: Homestead Credit Application: -$7,500
  • Net Taxable Value: $67,500
  • Annual Tax (3.5% rate): $2,363
  • Monthly Escrow: $197

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (25% assessment ratio): $150,000
  • Less: Homestead Credit Application: -$7,500
  • Less: Over-65 Credit (if applicable): -$12,500
  • Net Taxable Value: $130,000
  • Annual Tax (3.5% rate): $4,550
  • Monthly Escrow: $379

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (25% assessment ratio): $250,000
  • Less: Homestead Credit Application: -$7,500
  • Net Taxable Value: $242,500
  • Annual Tax (3.5% rate): $8,488
  • Monthly Escrow: $707

All tax credits require separate applications and are not automatically applied.

See How Taxes Affect Your Payment

Property taxes are just part of your total monthly cost. Get the full picture.

Calculate Now
Section 5

Escrow & Property Taxes

Most mortgage lenders in Houston County require property tax escrow accounts to ensure timely payment of property taxes. Your lender collects 1/12 of your estimated annual property tax bill each month along with your mortgage payment, holding these funds in a separate escrow account. The lender then pays your property taxes directly to Houston County when they become due.

Escrow accounts are analyzed annually, and your monthly payment may increase or decrease based on actual tax bills and account balances. If your account has a surplus over $50, the lender must refund the excess or apply it to reduce future payments. If there's a shortage, you may need to pay the difference or have your monthly escrow payment increased. You can verify your property tax payments and escrow account activity through your lender's online portal or by requesting an annual escrow statement.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Houston County property taxes due for FY 2025-2026? A: Property tax returns are due by April 1st annually. Tangible personal property schedules for businesses are due by March 1st.

Q: What tax credits are available and do I need to apply? A: Houston County offers homestead credits, elderly/disabled credits, and veteran disability credits. ALL credits require separate applications filed with the County Assessor's office - they are not automatically applied.

Q: How does the homestead credit work? A: The homestead credit caps annual assessment increases rather than reducing market value. You must file an application to receive this protection, and it typically limits assessment growth to 5-10% per year on your primary residence.

Q: How often is property reappraised in Houston County? A: Houston County follows a state-mandated reappraisal cycle. Check with the County Assessor for the specific schedule, as it varies by county and is updated regularly.

Q: What are the penalties for late property tax payments? A: Late payments incur interest charges and penalties. Contact the County Trustee's office for current penalty rates and payment options.

Q: Can I pay property taxes online? A: Check the Houston County Trustee's website for online payment options, which may include credit card and electronic check payments.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Houston County Board of Equalization within the specified deadline after receiving your assessment notice.

Q: Do special district taxes apply to my property? A: Depending on your location, you may pay additional taxes for fire districts, utility districts, or municipal services. Contact the County Assessor to determine which districts apply to your specific address.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Reappraisal Schedule - Tennessee Comptroller of the Treasurycomptroller.tn.gov
02
Tax Doc
How to Calculate Your Tax Billcomptroller.tn.gov
03
2025 Appraisal Ratioscomptroller.tn.gov
04
Tangible Personal Propertycomptroller.tn.gov
05
Tax Doc
Tax Assessorhoustoncountyga.gov
06
HUD Home | HUD.gov / U.S. Department of Housing and ...hud.gov
07
agenda - council meeting - tuesday - june 18, 2013 - 1:30 pmhoustontx.gov
08
State
50-State Property Tax Comparison Studyarchive.legmt.gov
09
County
Houston County, Tennesseecomptroller.tn.gov
10
County
$50490000 MONTGOMERY COUNTY, TENNESSEEmontgomerytn.gov
All sources verified as of 2025 Tax Year

See the Full Picture of Your Home Costs

Property taxes are just one piece of homeownership. HonestCasa helps you understand your total monthly cost and explore safe ways to access your home equity.

Total Monthly Cost

Mortgage + taxes + insurance + HOA

Equity Growth

Track how your equity grows over time

Safe Equity Access

Options for projects or debt payoff

Run Your ScenarioTry Calculator

Free • No credit check • 2-minute estimate