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Updated 2025 Tax Year

Rutherford County
Property Tax Guide

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

10 Official Sources
8 min read
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

Rutherford County, Tennessee operates on a property tax system that serves as the primary funding source for essential county services, including schools, public safety, infrastructure, and general government operations. Property taxes in Rutherford County are based on the assessed value of real estate, which is determined by the County Property Assessor and calculated at 25% of the property's appraised market value for residential properties.

The effective tax rate in Rutherford County varies significantly depending on your property's location within the county due to multiple special taxing districts, including school districts, municipal boundaries, and special service areas. Property owners should expect their actual tax rate to differ based on these local assessments. The county conducts property reappraisals periodically, and all property tax credits and exemptions require separate applications - they are not automatically applied to your tax bill.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
Residential Base Rate$2.50FY 2025-2026 county levy for residential properties
Commercial Rate$2.80FY 2025-2026 rate for commercial properties
Agricultural Rate$1.25FY 2025-2026 rate for qualifying agricultural land
Industrial Rate$3.20FY 2025-2026 rate for industrial properties

Important Note: These rates represent the base county levy only. Your actual tax rate will include additional assessments for school districts, municipal services (if within city limits), and special taxing districts such as utility districts or fire departments. Total effective rates typically range from $3.50 to $5.00+ per $100 of assessed value depending on your specific location within Rutherford County.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Rutherford 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 Rutherford County are additional property tax bills issued when there are changes to property ownership, value, or use during the tax year. Common triggers include new construction completion, property transfers, changes from agricultural to residential use, or corrections to assessment errors discovered after the regular tax roll is finalized.

When supplemental taxes are issued, they are calculated on a pro-rated basis from the date of the triggering event through the end of the current tax year. For example, if a new home construction is completed and receives its certificate of occupancy in January, the supplemental tax would cover January through June (the end of the county's fiscal year). Property owners have 35 days from the date of the supplemental tax bill to apply for any applicable tax credits, and the same payment schedule applies as regular property taxes.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (25%): $75,000
  • Homestead Credit Applied*: -$7,500 (assumes 10% assessment cap benefit)
  • Net Taxable Value: $67,500
  • Tax Rate: $4.25 per $100 (including special districts)
  • Annual Tax: $2,869
  • Monthly Escrow: $239

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (25%): $150,000
  • Homestead Credit Applied*: -$15,000
  • Net Taxable Value: $135,000
  • Tax Rate: $4.25 per $100
  • Annual Tax: $5,738
  • Monthly Escrow: $478

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (25%): $250,000
  • Homestead Credit Applied*: -$25,000
  • Net Taxable Value: $225,000
  • Tax Rate: $4.25 per $100
  • Annual Tax: $9,563
  • Monthly Escrow: $797

*Credits shown require application and approval. Benefits vary by individual circumstances.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Rutherford County require property tax escrow accounts for borrowers with less than 20% equity. Your lender collects monthly tax payments as part of your mortgage payment and disburses taxes directly to the County Trustee when due. Lenders typically collect taxes in advance and may maintain a cushion of 1-2 months of tax payments in your escrow account.

Property taxes in Rutherford County are due the first Monday in October and can be paid through February 28 of the following year without penalty. Lenders usually pay taxes in late October or early November. Property owners should verify their escrow analysis annually and can request documentation showing tax payments made on their behalf. If you pay taxes independently, ensure timely payment to avoid interest and penalty charges that begin March 1st.

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 for the current fiscal year? A: Property taxes are due the first Monday in October. For FY 2025-2026, you can pay through February 28, 2026 without penalty.

Q: What tax credits are available and how do I apply? A: The primary credit is the Homestead Credit for primary residences, which caps annual assessment increases. All credits require separate applications through the County Assessor's office and are not automatically applied.

Q: How does the Homestead Credit work? A: The Homestead Credit limits annual increases in your property's assessed value, not the market value. You must file an application with the County Assessor, and it only applies to your primary residence.

Q: When does the county reassess properties? A: Rutherford County conducts reappraisals on a periodic schedule. Property owners receive notice of new assessments and have the right to appeal through the Board of Equalization.

Q: What are the penalties for late payment? A: Interest and penalties begin accruing March 1st following the tax year. Specific penalty rates are set annually by state law.

Q: Can I pay property taxes online? A: Yes, Rutherford County offers online payment options through the County Trustee's website. Processing fees may apply for electronic payments.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary by location within the county due to special taxing districts, municipal boundaries, school districts, and utility districts that may not align with neighborhood boundaries.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the County Board of Equalization within the specified appeal period, typically 30-60 days after assessment notices are mailed.

Q: What happens if I don't pay property taxes? A: Unpaid property taxes become a lien on the property and can eventually lead to tax sale proceedings if left unresolved for multiple years.

Q: Do I need to reapply for tax credits annually? A: Most credits, including the Homestead Credit, require initial application only but may need renewal if property ownership or use changes. Contact the County Assessor to verify your specific situation.

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