How to Calculate Your Property Taxes

Property taxes are calculated using the following four components:

1. Appraised Value
2. Assessment Ratio
3. Assessed Value
4. Tax Rate
    

The APPRAISED VALUE for each taxable property in a county is determined by the county property assessor. This amount is an estimate of market value based on an established set of tables, manuals, and procedures set by state statute.

The ASSESSMENT RATIO for each class of property is established by Tenn. Constitution, Art.2, § 28 and TCA 67-5-801:

The ASSESSED VALUE is calculated by multiplying the appraised value by the assessment ratio.

The TAX RATE for each county and municipality is set by the County Commission or City 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.

Calculate Your Property Taxes Loudon County Resident's Calculator Lenoir City Resident's Calculator (Internet Explorer Browser Only)

If your property is inside the city limits of Lenoir City, your tax rate is slightly lower, at $1.74. This is because city residents have their own school system and therefore are not required to pay the portion of the tax dollar that goes toward the rural school debt fund.  This is a state-designated account that allows the county to set aside money strictly for the construction of new county school facilities.

To calculate your taxes manually, consider the following for a typical residential property with an Appraised Value of :

$ 100,000.00

and the most recent Loudon County Tax Rate of:
$ 1.84 per $100 of assessed value -- or 0.0184

Step 1:
Multiply the Appraised Value times the Assessment Ratio

$ 100,000 X 25% = $ 25,000

This gives you the property’s Assessment Value

Step 2:
Multiply the Assessment Value times the Tax Rate

$ 25,000 X (1.84/100) = $ 46

or

$ 25,000 X .0184 = $ 460
 

Residents who live inside either Loudon or Lenoir City also pay city property taxes to cover the cost of city services.  You can use the same formula above to calculate your city property tax bill.  Loudon’s current tax rate is $1.07 and Lenoir City’s is $1.30.

While the Loudon and Lenoir City city Recorder/Treasurers rely on the Loudon County Office of the Assessor for their annual assessment rolls, each mails its own tax bills and collects payments.

Note: The tax year is based on a “calendar year” while state and local governments operate on a July—June “fiscal year.” The tax rates for the current tax year (2006) are established by the County Commission and City Councils in July or August of that year at the beginning of their fiscal years.
 

The best possible estimate of taxes accrued between January 1st and June 30 for a given tax year is made by utilizing the tax rates adopted from the previous year.