Buying a home in Tennessee

Property taxes, transfer taxes, home values and first-time buyer help in Tennessee.

Effective property tax rate

0.5%

Median tax $1,442 ÷ median value $286,700 (ACS 2020–2024)

Typical home value

$334,108

Zillow ZHVI, 2026-08

State transfer tax

0.37%

Usually paid by: buyer. Tenn. Code § 67-4-409 (realty transfer tax). Official source. Local taxes may add more.

Estimated buyer closing costs Estimate

$4,000–$5,800

On a $334,108 home: typical lender fees + title insurance + deed recording (TallyClose) + the buyer’s share of transfer/recording taxes. Excludes prepaids, escrow and local taxes.

At Tennessee's effective rate of 0.5%, a typical $334,108 home would owe about $1,671/year ($139/month) in property taxes. Actual bills depend on your county, city and exemptions. Run your numbers.

First-time homebuyer programs

Tennessee Housing Development Agency

Your state housing finance agency offers down payment assistance and low-rate mortgages for eligible buyers. Visit Tennessee Housing Development Agency →

Sources: U.S. Census Bureau ACS 2020–2024 5-year (B25103, B25077); Zillow Home Value Index; TallyClose closing-cost dataset (CC BY 4.0), which cites each state statute; NCSHA HFA directory. Last updated 2026-10-15.