NASHVILLE, Tenn. (WKRN) — Tuesday night, Nashville’s Metro Council is meeting to vote on next year's budget, which includes an increase in property taxes.

Mayor Freddie O’Connell’s recommended budget includes a tax rate of 2.814. Although that is down from the current rate of 3.254, you may still end up paying more in property taxes. Data from the Davidson County Property Assessor revealed a 45% median increase in value over the last four years.

How to figure out your property tax

Tennessee property taxes are calculated utilizing four components: Appraised Value, Assessment Ratio, Assessed Value, and Tax Rate.

Metro Nashville’s website defines each of those components as follows:

• APPRAISED VALUE for each taxable property in a county is determined by the county property assessor.
• ASSESSMENT RATIO for the different classes of property is established by state law (residential and farm @ 25% of appraised value, commercial/industrial @ 40% of appraised value and personally @ 30% of appraised value).
• ASSESSED VALUE is calculated by multiplying the appraised value by the assessment ratio.
• TAX RATE for Davidson County is set by the Metro Council based on the amount of monies budgeted to fund the provided services. These tax rates vary depending on the level of services provided and the total value of the county’s tax base. The tax rates are not final until certified by the State Board of Equalization.

Using the Zillow Home Values Index, the current average Nashville home value sits at $447,647.

To find the annual property tax bill for a home at that amount, you would take that APPRAISED VALUE of $447,647 and use it to determine the ASSESSED VALUE of the home (25% of the total appraised value). In this case, that would be: $111,911.75.

Next, you would divide that number by 100, which gives you: $1,119.12. You would then multiply that by the proposed TAX RATE of $2.814 – putting the home’s annual property tax bill at $3,149.20 under O’Connell’s proposed budget.

You can use the above formula to calculate your home’s property tax bill under the proposed budget. You can also use Metro Nashville’s Tax Calculator.

News Source : https://www.wkrn.com/news/local-news/nashville/nashville-tn-property-tax-calculator/