Tennessee Real Estate Transfer Tax Calculator

When buying or selling real estate in Tennessee, you may be required to pay a transfer tax. This calculator helps you estimate the amount you'll owe based on the property value, transfer type, and county rates.

How the Tennessee Real Estate Transfer Tax Works

Tennessee imposes transfer taxes on the sale of real property. The tax rate varies by county and depends on whether the property is residential or commercial. The tax is calculated as a percentage of the property's assessed value.

Note: The actual tax amount may differ from the estimate due to rounding, exemptions, or changes in assessed values.

Key Factors Affecting Transfer Tax

Property value - The assessed value of the property
Transfer type - Whether it's a sale, inheritance, or other transfer
County rates - Different counties have different tax rates
Exemptions - Some properties may be exempt from transfer tax

Who Pays the Transfer Tax?

The transfer tax is typically paid by the buyer or the seller, depending on the type of transfer. In most cases, the buyer is responsible for paying the tax at closing.

Calculation Method

The Tennessee real estate transfer tax is calculated using the following formula:

Transfer Tax = Property Value × Tax Rate

The tax rate varies by county and property type. Here are the general rates for residential properties:

County	Tax Rate
Davidson	0.5%
Williamson	0.5%
Shelby	0.5%
Knox	0.5%
Rutherford	0.5%

For commercial properties, the rates may be higher. Always check with your local county assessor's office for the most current rates.

Worked Examples

Example 1: Residential Property in Davidson County

Property value: $300,000

Tax rate: 0.5%

Calculation: $300,000 × 0.005 = $1,500

Transfer tax: $1,500

Example 2: Commercial Property in Nashville

Property value: $500,000

Tax rate: 1.0% (for commercial properties)

Calculation: $500,000 × 0.01 = $5,000

Transfer tax: $5,000

Frequently Asked Questions

How do I find the assessed value of my property?

You can find the assessed value of your property through your local county assessor's office website or by requesting a property tax statement from your county.

Are there any exemptions from the transfer tax?

Yes, certain properties may be exempt from transfer tax, including properties owned by non-profit organizations, government entities, and some agricultural properties.

Who is responsible for paying the transfer tax?

The buyer is typically responsible for paying the transfer tax at closing. However, in some cases, the seller may be responsible.

Can I pay the transfer tax in installments?

In most cases, the transfer tax must be paid in full at the time of closing. However, some counties may allow for payment plans under certain circumstances.