Tennessee Property Tax Exemption: How to Qualify

In Tennessee, a state-funded property tax relief program helps certain residents by reducing the amount of property tax they are required to pay. Administered at the local level, the program is designed to help homeowners maintain ownership of their primary residences. The relief is provided as a credit against property taxes, effectively lowering the annual tax bill for qualifying individuals. The state pays a portion of the homeowner’s property taxes directly to the local collecting official. This assistance is not a loan and does not need to be repaid, provided the applicant remains eligible.

Eligibility for State Tax Relief

To qualify for Tennessee’s state-funded property tax relief, an applicant must meet criteria related to age, disability, or veteran status, along with ownership and residency requirements. The property must be the applicant’s primary home, and for most categories, there are strict income limits that include the total annual income of the applicant, their spouse, and any other co-owners.

Homeowners aged 65 or older by December 31 of the tax year, or those who are totally and permanently disabled, may be eligible. A disability rating must come from the Social Security Administration or another qualified agency. For both categories, the combined annual income from all sources for all owners of the property cannot exceed $36,370 for the 2024 tax year. This figure includes Social Security benefits, retirement income, wages, and investment returns, and requires the inclusion of a spouse’s income regardless of property ownership.

Disabled veterans may qualify for a separate tax relief program that has no income limit. To be eligible, a veteran must have a service-connected disability rated as total and permanent, such as paraplegia, the loss of two or more limbs, or legal blindness resulting from service. The tax relief is calculated on a maximum property market value of $175,000.

The benefit also extends to the surviving spouses of eligible disabled veterans. A widow or widower who has not remarried can receive the tax relief if their deceased spouse would have qualified. They must have been married to the veteran at the time of death and continue to own and live in the property. Similar to disabled veterans, there is no income limit for qualifying surviving spouses.

Required Information and Documentation

Applicants must provide personal and financial data, including their full legal name, Social Security number, property address, and a complete accounting of annual income for themselves, their spouse, and all other property co-owners. A comprehensive set of documents is necessary to verify this information.

Proof of age can be established with a driver’s license, birth certificate, or Medicare card. To substantiate income, applicants should submit signed copies of their most recent federal income tax return, Social Security benefit statements (SSA-1099), pension distribution forms (1099-R), and any W-2s. Proof of disability requires official documentation from the agency that issued the rating.

The central document is the Property Tax Relief Application, which can be obtained from the local county trustee’s office or downloaded from municipal or state websites. When completing the form, applicants will transfer their personal and financial information into the corresponding fields. All owners of the property, including spouses, must sign the application to certify its accuracy.

Disabled veterans must complete Form F-16, which authorizes the Department of Veterans Affairs to release disability and income information to the state. Surviving spouses of disabled veterans must complete a similar consent form, F-16S, and provide a copy of the veteran’s death certificate.

The Application Process

Once all necessary information and forms are complete, the application package must be submitted to the local official responsible for collecting property taxes. This is the county trustee or, for residents of certain cities, a city collecting official.

There is a firm deadline for submitting applications each year. The application must be filed no later than 35 days after the property tax delinquency date for the jurisdiction. This date can vary, so homeowners should confirm the specific tax due date for their location to calculate the submission deadline.

After submission, the application is reviewed by the local official and forwarded to the state for a final determination of eligibility. If approved, the state sends the relief funds directly to the county trustee or city collector. This amount is then credited to the applicant’s property tax bill.

Other Property Tax Exemptions

Beyond the state’s tax relief program for individuals, Tennessee law provides other types of property tax exemptions for organizations and specific land uses. These exemptions are governed by different statutes and have their own distinct application processes.

Institutional exemptions are available for properties owned by religious, charitable, scientific, and non-profit educational organizations. To qualify, the property must be owned by one of these institutions and used exclusively for its exempt purposes. These exemptions are not automatic and require a formal application to the Tennessee State Board of Equalization.

Another exemption is provided under the Agricultural, Forest, and Open Space Land Act, known as the Greenbelt Law. This program allows qualifying land to be assessed based on its current use value rather than its higher market value, easing the tax burden on owners of agricultural and forest land. If the land use changes, the owner may be liable for a rollback tax, which is the difference between the taxes paid and what would have been owed at market value for up to three years.