How to Calculate Your Property Taxes
Property taxes are calculated using the following four components:
- Appraised Value
- Assessment Ratio
- Assessed Value
- 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:
| Real Property | |
| 25% | Residential / Farm |
| 40% | Commercial / Industrial |
| 55% | Public Utility |
| Tangible Personal Property | |
| 30% | Commercial / Industrial |
| 55% | Public Utility |
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 services provided. Rates will vary depending on the level of services provided and the total tax base.
Calculate Your Property Taxes
Loudon County Resident's Calculator
Lenoir City Resident's Calculator
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If your property is inside the city limits of Lenoir City, your tax rate is slightly lower, at $1.4448. 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 and the construction of new county schools. To calculate your taxes manually, consider the following for a typical residential property with an Appraised Value of:
$ 100,000.00
and the current Loudon County Tax Rate of:
$ 1.7869 per $100 of assessed value -- or 0.017869
Step 1:
Multiply the Appraised Value times the Assessment Ratio to get the Assessed Value
$ 100,000 X 25% = $ 25,000
Step 2:
Multiply the Assessment Value times the Tax Rate
$ 25,000 X (1.7869/100)
or
$ 25,000 X 0.017869
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 $1.0287 and Lenoir City’s is $1.0615.
While the Lenoir City and Loudon city Recorder/Treasurers rely on the Loudon County 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 budgets and tax rates for the current tax year are typically set by the County Commission and City Councils in July or August.