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Updated 2025 Tax Year

Montgomery County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
$2.18 per $100 of assessed value (2025 projected), varies by special districts and municipal boundaries
Exemptions
5+ Available
Section 1

How Property Tax Works

Montgomery County, Tennessee operates on a property tax system that serves as the primary funding source for essential local services including public schools, road maintenance, public safety, and county operations. Property taxes in Montgomery County are levied based on assessed values determined by the County Property Assessor, with the current tax rate projected at $2.18 per $100 of assessed value for 2025, subject to County Commission approval.

The effective tax rate can vary significantly depending on your specific location within Montgomery County due to special taxing districts, municipal boundaries, and additional assessments. Properties within incorporated cities like Clarksville may have different total tax obligations when combining county and municipal taxes. Tennessee assesses property at 25% of its appraised fair market value for residential properties, meaning a $400,000 home would have an assessed value of $100,000 for tax calculation purposes.

Property owners should note that while the county sets base tax rates, your actual tax bill may include additional levies for school bonds, special improvement districts, or other local assessments that vary by geographic location within the county. All property tax credits and exemptions require formal application and are not automatically applied to your tax bill.

Section 2

What Makes Up Your Tax Bill

ComponentRate per $100Description
County General Fund$0.98Basic county operations, administration, public safety
General Road Fund$0.15Road maintenance and transportation infrastructure
School District$1.05*Public education funding (estimated component)
Total Base Rate$2.18Projected rate for FY 2025-2026

Note: The exact breakdown between county operations and school funding components is subject to final County Commission approval. Additional special district assessments may apply based on property location, including:

  • Municipal taxes (for properties within city limits)
  • Special improvement district assessments
  • Utility district charges
  • Fire district fees (for unincorporated areas)

Important: These rates apply to the FY 2025-2026 levy year and are subject to change. Properties in different areas of Montgomery County may have varying total tax rates due to special taxing districts and municipal boundaries.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Montgomery 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 Montgomery County are additional property tax bills issued when there are significant changes to property ownership, value, or use during the tax year. The most common triggers include new construction completion, major renovations that increase assessed value, or ownership transfers that reveal previously unreported improvements.

When supplemental taxes are levied, they are calculated based on the difference between the old assessed value and the new assessed value, multiplied by the current tax rate, and prorated for the remaining months in the tax year. For example, if a $50,000 addition to your home is completed and assessed in January, increasing your assessed value by $12,500 (25% of market value), you would owe supplemental taxes on that $12,500 increase for the remaining portion of the tax year.

Example: A homeowner completes a $100,000 home addition in December. The addition increases the assessed value by $25,000 ($100,000 × 25%). At Montgomery County's $2.18 per $100 tax rate, this creates $545 in additional annual taxes ($25,000 ÷ 100 × $2.18). Since the addition was completed with 3 months remaining in the tax year, the supplemental tax bill would be approximately $136 ($545 ÷ 12 months × 3 months).

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (25%): $75,000
  • Tax Credits Applied: $0 (assuming no applications filed)
  • Net Taxable Value: $75,000
  • Annual Tax: $1,635 ($75,000 ÷ 100 × $2.18)
  • Monthly Escrow: $136

Example 2: $600,000 Home with Homestead Credit

  • Market Value: $600,000
  • Assessed Value (25%): $150,000
  • Homestead Credit Applied: -$2,500* (requires application)
  • Net Taxable Value: $147,500
  • Annual Tax: $3,215 ($147,500 ÷ 100 × $2.18)
  • Monthly Escrow: $268

Example 3: $1,000,000 Home with Senior Credit

  • Market Value: $1,000,000
  • Assessed Value (25%): $250,000
  • Senior Citizen Credit: -$5,000* (requires application, age 65+)
  • Net Taxable Value: $245,000
  • Annual Tax: $5,341 ($245,000 ÷ 100 × $2.18)
  • Monthly Escrow: $445

*Credit amounts are estimates and subject to eligibility requirements and annual application. All tax credits require formal application with the Montgomery County Property Assessor's office.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Montgomery County require property tax escrow accounts for loans with less than 20% down payment. Your lender collects approximately 1/12th of your annual property tax bill with each monthly mortgage payment, depositing these funds into an escrow account to pay your taxes when due.

Montgomery County property taxes are due from the first Monday in October through February 28th of the following year without penalty or interest. Lenders typically pay these taxes in late October or November to ensure timely payment and avoid penalties. Your annual escrow analysis will show exactly when your taxes were paid and may result in escrow adjustments if your tax bill increases or decreases significantly.

Property owners should verify that their mortgage servicer has the correct tax amount, as changes in assessed value, new construction, or applied tax credits can affect your annual tax bill. You can monitor your property's assessed value and tax calculations through the Montgomery County Property Assessor's online portal. If you pay taxes independently, remember that late payments after February 28th incur interest charges, and failure to pay by the following October results in delinquency proceedings.

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 Montgomery County property taxes due for the current fiscal year? A: Property taxes are due from the first Monday in October through February 28, 2026, without interest or penalties. Late payments after February 28th will incur interest charges.

Q: What tax credits are available and do I need to apply? A: Tennessee offers several tax credits including homestead exemption, senior citizen credits, and disabled veteran exemptions. All credits require annual application with the Montgomery County Property Assessor's office and are not automatically applied to your tax bill.

Q: How does the homestead exemption work? A: The homestead exemption in Tennessee limits the annual increase in assessed value for your primary residence, typically capping increases at a certain percentage. This doesn't reduce your property's market value but provides assessment stability. You must apply annually to maintain this benefit.

Q: How often are properties reassessed in Montgomery County? A: Tennessee law requires property reappraisals at least every six years. Montgomery County typically conducts county-wide reappraisals on this schedule, though individual properties may be reassessed more frequently due to sales, improvements, or appeals.

Q: What happens if I pay my property taxes late? A: Payments made after February 28th incur interest charges. Properties that remain unpaid by the following October are subject to delinquency proceedings, which can ultimately result in tax sale.

Q: Can I pay my property taxes online? A: Yes, Montgomery County offers online property tax payment options through their official website. You can also pay in person at the County Clerk's office or by mail.

Q: Why did my tax bill increase if I didn't make any improvements? A: Tax bills can increase due to rising property values, changes in tax rates approved by the County Commission, new special district assessments, or the expiration of previously applied tax credits that require annual renewal.

Q: How do I appeal my property assessment? A: Property owners can appeal assessments through the Montgomery County Board of Equalization. Appeals must typically be filed within specific timeframes following assessment notices, and you'll need evidence supporting your claimed property value.

Q: Do I owe different taxes if I live within Clarksville city limits? A: Yes, properties within incorporated municipalities like Clarksville pay both county property taxes and additional municipal property taxes. Your total tax rate will be higher than the county-only rate shown in this guide.

Q: Are there exemptions for non-profit organizations? A: Non-profit organizations may qualify for property tax exemptions, but must apply to and be approved by the Tennessee State Board of Equalization. No organization is automatically exempt and must own the property being claimed for exemption.

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