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Updated 2025 Tax Year

Rhea County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Approximately 1% base rate, varies by district due to municipal boundaries and special taxing districts
Exemptions
5+ Available
Section 1

How Property Tax Works

Rhea County, Tennessee operates on a property tax system that funds essential county services including education, public safety, road maintenance, and general government operations. The county follows Tennessee's property tax structure with an assessment ratio of 1.0000 for the 2025 tax year, meaning properties are assessed at their full appraised value as determined by the County Property Assessor. Property assessments are conducted on January 1st of each tax year, with the county following the state's reappraisal cycle.

Property tax rates in Rhea County vary depending on your specific location within the county due to special taxing districts, municipal boundaries, and school district variations. The effective tax rate typically ranges around Tennessee's average of approximately 1%, though your actual rate may be higher or lower based on local levies and special assessments in your area. Property taxes are collected in two installments annually, with payments typically due in October and March, and final payment required by December 31st.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General FundVariesBasic county services and operations
County School DistrictVariesPublic education funding
Municipal ServicesVariesCity services (if applicable to location)
Special DistrictsVariesFire districts, utility districts, other special assessments
Total Effective Rate~1.0-1.2%Combined rate varies by location within county

Note: These rates apply to the FY 2024-2025 levy year. Exact rates vary significantly based on your property's location within Rhea County due to different combinations of municipal boundaries and special taxing districts. Contact the Rhea County Property Assessor for your specific tax rate based on your property's tax map and parcel number.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Rhea 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 Rhea County are triggered by changes in property ownership, new construction, or significant improvements made after the January 1st assessment date. When you purchase property or complete construction/renovations, the County Assessor may issue a supplemental assessment to capture the increased value or ownership change for the current tax year.

The supplemental tax is calculated by taking the difference between the new assessed value and the previous assessed value, multiplying by the applicable tax rate, and prorating for the remaining months in the tax year. For example, if you purchase a home in July that was previously assessed at $200,000 but now appraises at $350,000, you would owe supplemental taxes on the $150,000 difference for the remaining 6 months of the tax year (July through December).

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessment Ratio: 1.0000
  • Assessed Value: $300,000
  • Less: Homestead Credit (if applied for): -$7,500
  • Net Taxable Value: $292,500
  • Tax Rate: ~1.1%
  • Annual Tax: ~$3,218
  • Monthly Escrow: ~$268

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessment Ratio: 1.0000
  • Assessed Value: $600,000
  • Less: Homestead Credit (if applied for): -$7,500
  • Net Taxable Value: $592,500
  • Tax Rate: ~1.1%
  • Annual Tax: ~$6,518
  • Monthly Escrow: ~$543

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessment Ratio: 1.0000
  • Assessed Value: $1,000,000
  • Less: Homestead Credit (if applied for): -$7,500
  • Net Taxable Value: $992,500
  • Tax Rate: ~1.1%
  • Annual Tax: ~$10,918
  • Monthly Escrow: ~$910

Note: Tax credits shown require separate applications and are not automatically applied. Actual rates vary by location within the county.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Rhea County require property tax escrow accounts for borrowers with less than 20% down payment. Your lender will collect 1/12th of your estimated annual property tax bill each month along with your mortgage payment. The lender maintains these funds in an escrow account and pays your property taxes directly to Rhea County when due in October and March.

Lenders are required to conduct annual escrow analyses to ensure adequate funds are collected. If your property taxes increase due to reassessment or rate changes, your monthly escrow payment may increase. Conversely, if taxes decrease, you may receive an escrow refund. You can request an escrow account even if not required, and you have the right to pay property taxes directly if your loan-to-value ratio is sufficiently low and your lender permits it.

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 property taxes due in Rhea County for FY 2024-2025? A: Property taxes are typically due in two installments - first in October and second in March, with final payment required by December 31st. Contact the County Trustee for exact dates.

Q: What tax credits are available and do I need to apply? A: Tennessee offers several tax credits including homestead credit for primary residences, elderly/disabled credits, and veteran credits. All credits require separate applications - they are NOT automatic. Contact your County Assessor's office for applications and eligibility requirements.

Q: How does the homestead credit work? A: The homestead credit provides property tax relief for primary residences and caps assessment increases to protect against rapid property value growth. You must apply for this credit - it's not automatically granted. The application deadline is typically 35 days past the property tax delinquency date.

Q: When does Rhea County conduct property reappraisals? A: Rhea County follows the state reappraisal schedule. The county is currently in the reappraisal cycle with the next comprehensive reappraisal scheduled according to state requirements. All properties are reassessed as of January 1st each tax year.

Q: How do I appeal my property assessment? A: You can appeal your assessment through the County Board of Equalization. Appeals must typically be filed within a specific timeframe after assessment notices are mailed. Contact the County Assessor's office for appeal forms and deadlines.

Q: What are the penalties for late property tax payments? A: Tennessee law provides for interest and penalties on delinquent property taxes. Contact the Rhea County Trustee's office for specific penalty rates and collection procedures.

Q: Can I pay property taxes online? A: Contact the Rhea County Trustee's office to inquire about online payment options and accepted payment methods for property taxes.

Q: Why do property tax rates vary within Rhea County? A: Your total tax rate depends on which special taxing districts serve your property, including fire districts, utility districts, municipal boundaries, and school district assignments. Properties in different areas of the county may have different combinations of these services, resulting in varying total tax rates.

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