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Updated 2025 Tax Year

Madison County
Property Tax Guide

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

10 Official Sources
8 min read
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Quick Facts
Tax Rate
Varies by district - base county rate plus municipal and school district additions (typically 2.5-4% total)
Exemptions
4+ Available
Section 1

How Property Tax Works

Madison County, Tennessee operates under a property tax system that funds essential local services including schools, public safety, infrastructure maintenance, and county operations. Property taxes are calculated based on assessed values determined by the County Assessor and tax rates set annually by the Madison County Commission. The county uses Tennessee's standard assessment ratio of 25% of appraised value for most residential and commercial properties.

Property tax rates in Madison County vary by location within the county due to special taxing districts, municipal boundaries, and school district overlays. The base county rate is combined with additional assessments for services like schools, debt service, and special districts. Property owners should note that their exact tax rate depends on their specific location and which taxing jurisdictions serve their property. All property tax bills are collected by the Madison County Trustee's office.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100 assessed value)Description
County General Fund$0.36Base county operations and services
School DistrictVaries by districtLocal school funding (rates differ by school district)
Municipal OverlayVaries by cityAdditional rate for incorporated areas
Special DistrictsVaries by locationFire districts, utility districts, or other special services
Debt ServiceIncluded in aboveBond payments and debt obligations

Levy Year: 2025 Tax Year (bills due February 2026)

Note: Total effective rates typically range from approximately $0.50 to $1.20 per $100 of assessed value depending on your specific location and applicable special taxing districts within Madison County.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Madison 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 Madison County are triggered by changes in property ownership, new construction, or improvements that increase a property's assessed value during the tax year. When these events occur after the January 1st assessment date, the County Assessor issues a supplemental assessment to capture the additional tax liability for the remaining portion of the tax year.

The supplemental tax is calculated by determining the difference between the old and new assessed values, applying the appropriate tax rate, and prorating the amount based on the number of months remaining in the tax year. For example, if a $100,000 home improvement is completed in July, the supplemental tax would be calculated on the increased assessed value ($25,000 at 25% assessment ratio) for the remaining 6 months of the tax year. Property owners receive a separate supplemental tax bill with its own due date, typically 30 days from the bill date.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (25%): $75,000
  • Less: Homestead Credit (if applied): -$7,500
  • Net Taxable Value: $67,500
  • Annual Tax (at $0.80/$100): $540
  • Monthly Escrow: $45

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (25%): $150,000
  • Less: Homestead Credit (if applied): -$7,500
  • Net Taxable Value: $142,500
  • Annual Tax (at $0.80/$100): $1,140
  • Monthly Escrow: $95

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (25%): $250,000
  • Less: Homestead Credit (if applied): -$7,500
  • Net Taxable Value: $242,500
  • Annual Tax (at $0.80/$100): $1,940
  • Monthly Escrow: $162

Note: Tax credits shown require application and approval. Actual rates vary by specific location within Madison County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Madison County require borrowers to maintain an escrow account for property taxes, especially when the loan-to-value ratio exceeds 80%. Lenders collect monthly escrow payments as part of your mortgage payment and are responsible for paying your property taxes when due on February 28th each year. The monthly escrow amount is calculated by dividing your annual tax bill by 12, often with an additional cushion to account for potential increases.

Lenders must provide an annual escrow analysis showing the account activity and any required adjustments to your monthly payment. If property taxes increase significantly due to reassessment or rate changes, your monthly mortgage payment may increase to maintain adequate escrow funds. Property owners can verify their tax payments by checking with the Madison County Trustee's office or accessing online payment records, even when taxes are paid through escrow.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
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Section 6

Frequently Asked Questions

Q: When are Madison County property taxes due for the 2025 tax year? A: All property taxes are due by February 28, 2026. Payments received after this date are subject to penalties and interest.

Q: What tax credits are available and do I need to apply? A: Tennessee offers several tax credits including the Homestead Credit and Elderly/Disabled Credit. All credits require application - none are automatic. The Homestead Credit caps assessment increases, while the Elderly/Disabled Credit has income limits and age requirements.

Q: How does the Homestead Credit work? A: The Homestead Credit doesn't reduce your home's market value but instead caps annual assessment increases and may provide additional tax relief. You must file an application with the County Assessor's office to receive this benefit.

Q: What is the income limit for the Elderly/Disabled Credit in 2024? A: Applicants must be 65 or older by December 31, 2024, with combined household income not exceeding $48,800 for 2023. This credit requires annual application.

Q: How often are properties reassessed in Madison County? A: Tennessee law requires property reappraisals every 4-6 years. Property owners receive notice of new assessments and have the right to appeal through the County Board of Equalization.

Q: What happens if I pay my property taxes late? A: Late payments incur penalties and interest charges. After March 1st, unpaid taxes may result in additional fees, and eventually, the property could be subject to tax sale proceedings.

Q: Can I pay my property taxes online? A: Yes, the Madison County Trustee's office offers online payment options. A convenience fee applies to credit/debit card payments and online checks, whether paid online or by phone.

Q: Why do special district taxes vary across Madison County? A: Different areas of the county receive different levels of services (fire protection, utilities, schools) from various special districts and municipalities. Your tax bill reflects the specific combination of services available at your property location.

Verified Sources

Backed by 10 Official Government Sources

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

01
State
State of North Carolinamadisoncountync.gov
02
S&P Global Ratingsmadisoncountymt.gov
03
Tax Doc
Search Property Taxesmadisoncountytn.gov
04
County
Payment Options | Madison County, TN - Official Websitemadisoncountytn.gov
05
Frequently Asked Questions - CivicPlus.CMS.FAQmadisoncountytn.gov
06
County
Payment of Taxes | Madison County, TN - Official Websitemadisoncountytn.gov
07
County
Property Tax Exemption | Madison County, TNmadisoncountytn.gov
08
County
Tax Freeze | Madison County, TN - Official Websitemadisoncountytn.gov
09
Homestead Exemption in Tennesseetn.gov
10
County
Madison County, Tennesseecomptroller.tn.gov
All sources verified as of 2025 Tax Year

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