Property tax math can feel like alphabet soup when you are trying to budget for a home in Southside. You want a clear number and a simple way to check it. In this guide, you will learn how appraised and assessed values differ, how city and county taxes stack, where to verify current rates, and how taxes are usually prorated at closing. Let’s dive in.
Appraised vs. assessed value in Tennessee
Your tax bill starts with two related but different numbers.
- Appraised (market) value is the county Assessor of Property’s estimate of what your home would sell for under normal conditions.
- Assessed value is the taxable portion of that appraised value. In Tennessee, residential property is assessed at 25% of market value.
Here is the basic formula:
- Assessed value = Appraised value × 0.25
- Taxable assessed value = Assessed value minus any approved exemptions or credits
Two offices play different roles. The Montgomery County Assessor of Property values the property and sets the assessed value. The Montgomery County Trustee issues the tax bill and collects payment.
Step-by-step: Calculate your Southside taxes
1) Find the appraised value
Look up the parcel in the Montgomery County Assessor’s property records or contact the Assessor’s office for the current appraised value. Confirm that the property characteristics on file match the home you are evaluating.
2) Convert appraised to assessed value
For a Southside home in the residential category:
- Assessed value = Appraised value × 25% (0.25)
3) Check exemptions and credits
Subtract any approved exemptions or relief programs to get the taxable assessed value. Programs can include elderly or disabled relief, disabled veteran exemptions, or agricultural/use-value assessment for qualified farmland or timberland. Rules and deadlines vary, so verify eligibility with the Assessor or Trustee.
4) Apply the correct tax rates
Add up the tax rates that apply to the parcel. Southside properties typically pay county taxes. If the property sits inside a municipality’s corporate limits, you also add the city tax. Some parcels may include school, special district, or utility district levies.
Tennessee rates are often quoted as dollars per $100 of assessed value. Use this formula:
- Total annual tax = (Taxable assessed value ÷ 100) × Total tax rate (dollars per $100)
If you see a mill rate instead:
- Total annual tax = Taxable assessed value × (mill rate ÷ 1000)
5) Confirm prior-year items
Ask the Trustee about any unpaid taxes, penalties, or special assessments tied to the parcel. These are liens and are normally addressed at closing.
Quick example (for illustration only)
- Appraised value: $300,000
- Assessed value: $300,000 × 0.25 = $75,000
- If the combined rate were $2.50 per $100 of assessed value:
- Annual tax = ($75,000 ÷ 100) × $2.50 = $1,875
This is a simple example to show the math. Always verify the real rate for your specific parcel.
Inside city limits vs. outside city limits
Your total bill can change depending on whether your Southside address sits inside a city’s corporate limits or in unincorporated Montgomery County.
- Inside city limits: You typically pay the county tax plus a city tax. City services like police, road maintenance, and sanitation are often funded in part by city property tax. If a parcel was recently annexed, the bill may change in the year following annexation.
- Outside city limits: You generally pay county taxes and any applicable special district taxes, with no municipal (city) tax.
If you are not sure whether a parcel is inside city limits, confirm using the county GIS/parcel viewer, or contact the Assessor of Property.
Where to verify your numbers
When you need parcel-specific, up-to-date details, contact these offices directly:
- Montgomery County Assessor of Property: Appraised values, assessed values, exemptions, property lookup, and how to appeal.
- Montgomery County Trustee / Finance Department: Current tax rates, billing calendars, payment status, and payoff figures.
- City of Clarksville Finance or Tax Office: Municipal tax rates and annexation information, if the property is inside the city.
- Montgomery County GIS / Parcel Viewer: City-limit overlays, school district and special district assignments, and parcel boundaries.
- Tennessee Department of Revenue / Tennessee Comptroller (Division of Property Assessments): Statewide rules on assessment ratios and programs.
Exemptions and use-value programs
Tennessee does not have a universal homestead exemption. However, local relief programs can reduce the taxable assessed value for qualifying households. Examples include relief for elderly or disabled homeowners, disabled veterans, and current use valuation for qualified agricultural or forest land. Each program has its own eligibility rules, documentation needs, and deadlines. Work with the Assessor and Trustee to confirm what may apply to your parcel and how to submit an application on time.
Appeals: If you disagree with value
If you believe the appraised value exceeds market value, start with the Assessor’s office. Ask for an informal review and confirm basic data like square footage, condition, and permitted improvements. If you still disagree, you can file a formal appeal with the County Board of Equalization by the stated deadlines. Some cases can proceed to state-level review or court after local appeals. Helpful documents include recent comparable sales, a private appraisal, photos, and repair estimates.
How taxes are prorated at closing
In a typical Montgomery County closing, annual property taxes are prorated between buyer and seller based on the days each party owns the home during the tax year. Whether taxes are paid in arrears or in advance affects how the settlement statement shows the credits.
- If the bill is unpaid at closing, the seller is charged for the seller’s share through the closing date, and the buyer receives a matching credit.
- If the seller prepaid the tax, the buyer reimburses the seller for the buyer’s share from the closing date through year-end.
Here is a simple proration example:
- Annual tax: $1,200
- Closing date: seller owns through August 15
- Seller days in year: Jan 1–Aug 15 = 227 days
- Seller share = $1,200 × (227 ÷ 365) ≈ $746.30
The parties can negotiate details in the purchase contract, and local customs may guide how the closing attorney or title company handles timing.
Closing checklist for taxes
- Verify tax status and last payment with the County Trustee.
- Request the current bill and tax history.
- Check for tax liens or unpaid special assessments.
- Confirm any exemptions and whether they will remain after transfer.
- Include clear proration terms in the contract.
Practical tips for buyers and sellers
For buyers
- Ask the seller for recent tax bills and proof of payment.
- Confirm if the parcel is inside city limits and check special district assignments.
- Use the county’s property records to estimate taxes from the current appraised value, and budget for changes after transfer or reappraisal.
- If you may qualify for relief programs, get the application steps and deadlines early.
For sellers
- Provide current tax bills and disclose any unpaid amounts or special assessments.
- Expect proration at closing and keep your proof of any prepaid amounts.
- If you believe the appraised value is high, consider discussing an appeal timeline before listing.
For both
- Put tax proration language in the contract and let the closing agent verify the amounts with the Trustee.
- Ask about any pending annexation or zoning changes that could affect future tax bills.
Final thoughts
When you understand the difference between appraised and assessed value, how city and county rates stack, and how proration works, you can plan your Southside move with confidence. The most accurate answer always comes from verifying parcel-specific details with the Assessor and Trustee.
If you want help reading a tax bill, estimating your total carrying costs, or coordinating proration at closing, reach out to Cheryl Barrett for local guidance that fits your goals. Schedule a Consultation.
FAQs
What is the difference between appraised and assessed value in Southside?
- Appraised value is the Assessor’s market value estimate. Assessed value for Tennessee residential property equals 25% of appraised value and is used to calculate the tax bill.
Do Southside homes pay city taxes or only county taxes?
- It depends on location. Parcels inside a city’s corporate limits pay both county and city taxes. Parcels outside the city pay county taxes and any applicable special district taxes.
How do I estimate my property taxes before I buy?
- Find the Assessor’s appraised value, multiply by 25% to get assessed value, subtract any exemptions, then multiply by the total tax rate. Confirm the current rate and any special district levies with the Trustee.
Why did my property tax increase after closing?
- Increases can come from a county reappraisal or reassessment, rate changes, the removal of the prior owner’s exemptions, or improvements that raised the appraised value.
How are property taxes split between buyer and seller at closing?
- Taxes are typically prorated based on ownership days during the tax year. If unpaid, the seller is charged for the seller’s share and the buyer receives a matching credit. Exact handling depends on billing timing and contract terms.
