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Updated 2025 Tax Year

Smith County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
$2.73 per $100 assessed value (projected 2025, varies by taxing district)
Exemptions
4+ Available
Section 1

How Property Tax Works

Smith County, Tennessee operates under a property tax system that funds essential local services including schools, roads, public safety, and county operations. Property taxes are levied based on assessed value, which is determined by the County Assessor's office as of January 1st each year. The projected tax rate for Smith County in 2025 is $2.73 per $100 of assessed value, representing a 20% decrease from current rates, though this rate is not yet finalized.

Property tax rates vary by location within Smith County due to special taxing districts, which may include school districts, fire districts, utility districts, and other special assessments. Property owners should verify their specific tax rate based on their property's location and applicable districts. The county follows Tennessee's assessment system where property is assessed at a percentage of market value, with different classes of property having different assessment ratios.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100 assessed value)Description
County GeneralTBDGeneral county operations and services
School DistrictTBDLocal school funding
State EqualizationTBDState-mandated education funding
Total Base Rate$2.73 (projected)Combined rate for FY 2025-2026
Special DistrictsVariesFire districts, utility districts, debt service

Note: These rates apply to the FY 2025-2026 levy year and are subject to final budget approval. Actual rates vary significantly by location within Smith County based on applicable special taxing districts. Property owners should contact the Smith County Assessor's office to determine their specific rate based on their property's location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Smith 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 Smith County are additional property tax assessments that occur when there are changes to property ownership, new construction, or improvements completed after the January 1st assessment date. These taxes are calculated on a pro-rated basis from the date of the change through the end of the tax year. Common triggers include new construction completion, major renovations that increase property value, changes in property use classification, or corrections to assessment errors.

For example, if a homeowner completes a $50,000 addition to their home in July, the supplemental tax would be calculated on the increased assessed value for the remaining months of the tax year (July through December). The supplemental bill is separate from the regular annual property tax bill and has its own due date, typically 30 days from the date of issuance.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (25% for residential): $75,000
  • Less: Homestead Credit (if applicable): Variable
  • Net Taxable Value: ~$75,000
  • Annual Tax ($2.73 rate): $2,048
  • Monthly Escrow: ~$171

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (25% for residential): $150,000
  • Less: Homestead Credit (if applicable): Variable
  • Net Taxable Value: ~$150,000
  • Annual Tax ($2.73 rate): $4,095
  • Monthly Escrow: ~$341

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (25% for residential): $250,000
  • Less: Homestead Credit (if applicable): Variable
  • Net Taxable Value: ~$250,000
  • Annual Tax ($2.73 rate): $6,825
  • Monthly Escrow: ~$569

Note: These calculations use the projected rate and do not include special district taxes. Tax credits require separate application and are not automatically applied. Contact the Smith County Assessor for current credit amounts and eligibility requirements.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Smith County require property tax escrow accounts for borrowers with less than 20% equity. Lenders collect monthly property tax payments along with principal and interest, depositing these funds into an escrow account. The lender pays property taxes directly to Smith County when bills become due. Property owners receive an annual escrow analysis showing deposits, payments, and account balance.

Escrow accounts must maintain adequate funds to cover upcoming tax payments, and lenders may require a cushion of up to two months' payments. When property taxes increase, monthly escrow payments adjust accordingly. Property owners can verify that taxes were paid correctly by checking with the Smith County Assessor's office or accessing online payment records. Those without escrow accounts receive tax bills directly and are responsible for timely payment to avoid penalties and interest charges.

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 Smith County property taxes due for the current fiscal year? A: Property taxes are due April 5, 2025. This is also the deadline for tax relief applications.

Q: What tax credits are available and do I need to apply? A: Tax credits such as homestead, elderly, disabled, and veteran credits are available but require separate application. These are not automatic and must be filed by the April deadline. Contact the Assessor's office for specific eligibility requirements and application forms.

Q: How does the homestead credit work? A: The homestead credit limits assessment increases on your primary residence, not the market value. It caps how much your assessed value can increase annually. You must apply for this credit - it's not automatic. The maximum benefit is based on a percentage of assessed value up to $62,500.

Q: How often are properties reassessed in Smith County? A: Properties are assessed annually as of January 1st. The County Assessor reviews market conditions and property changes to determine assessed values for the upcoming tax year.

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

Q: Can I pay my property taxes online? A: Yes, Smith County offers online property tax payment and viewing services. Visit the county website to access the online portal for current and past tax information.

Q: How do special district taxes affect my bill? A: Special districts (fire, utility, school bonds) add to your base county rate. Your total rate depends on which districts serve your property location. The Assessor's office can provide your specific rate breakdown.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Smith County Board of Equalization. There are specific deadlines and procedures for filing appeals. Contact the Assessor's office for appeal forms and deadlines.

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