Real Estate in Murfreesboro
Annette Masterson

Where Do Your Property Tax Rates Rank Against Other Places?

June 2nd, 2017 at 1:03 am by Annette Masterson

I came across a recent article by Forbes titled “Where in Your State Homeowners Pay the Highest and Lowest Property Taxes” and thought it brought up some interesting points. If you’ve been paying attention to President Trump’s tax plans recently you probably know that he’s proposing to cut the state and local property tax deduction if the first draft of his tax reform plans go through. While he is proposing to save the home mortgage interest deduction, he would also like to double the standard tax deduction, effectively negating the benefits of home ownership and charitable donations. Regardless of how you feel about the President’s plan, one thing is for certain: if state and local property tax deductions are cut, the cost of owning a home will increase as you won’t see a yearly deduction on your taxes. While some areas of the country pay relatively small property taxes, other areas, especially in the northeast, pay sometimes exorbitant property taxes and it would affect their home values immensely.

Here are some of the highlights of the article:

– Washington, D.C.-based Tax Foundation analyzed the Census Bureau data to derive the median annual property tax bill from 2011 to 2015 – about $2149 per year, or a 1.08% effective property tax rate.

– The effective, or average, tax rate for the state of Tennessee is only .72% while property taxes provide about 26% of the state’s tax revenue. The article reports that Grundy County pays the lowest median taxes in the state at $406 while Williamson County pays the highest median amount at $2,118. I think it is important to point out here that just because a certain county’s median taxes are higher does not necessarily mean that their actual property tax percentage is higher. Williamson County’s effective tax rate is around .61%; Grundy County’s effective tax rate is .51%, a mere .1% smaller. Nashville, located in Davidson County, has a 1% effective tax rate while Rutherford County falls in between at .79%.

– According to, Tennessee’s property taxes are some of the lowest in the country with the median annual tax being just over $1,000. This makes Tennessee the ninth lowest in the country and less than half of the national average.

– New York’s effective property tax rate is a whopping 1.38% which accounts for almost one-third of the state’s tax revenue. This is aided by the New York City suburbs of Nassau, Rockland and Westchester, whose median tax bills were over $10,000 each. This puts them at the top of the country’s median property tax bills.

– The highest effective property tax rate falls to New Jersey with a 2.13% rate. The lowest is in Hawaii with just a .27% effective rate. In general, the highest rates fell to the northeast.

To calculate your county’s effective property tax rate, you can visit this site.

To search for homes on the MLS, click here.

Annette Masterson is a licensed broker with EXIT Realty in Murfreesboro, TN. She has developed one of the most successful real estate teams in Rutherford County, known as Masterson Network Homes, that specializes in new home construction and residential listings and sales throughout Middle Tennessee. You can email Annette at or call her at 615-896-5656 for more information.

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