Tennessee Mortgage Calculator
No state income tax and a low property tax make Tennessee a fast-growing target.
Tennessee has no state income tax and an effective property tax rate of about 0.65% of home value, a combination that has helped Nashville, Knoxville, and Chattanooga attract buyers from higher-tax states. Prices have risen quickly but still sit below many coastal metros.
Insurance is the main tax-adjacent cost to watch: severe storms and tornadoes across the western and central parts of the state, and hail in the middle Tennessee region, keep premiums above the national average.
Assumptions & Review
Last reviewed: August 2026 · The Mortgage Curve editorial team
These are rough planning assumptions, not precise quotes. The tax figure is a dated state-level effective-rate reference; the insurance figure is an editorial percentage estimate. Your actual property tax depends on your county, city, school district, and assessed value, and your insurance premium depends on your carrier, coverage, deductible, and local risk.
Methodology: the tax percentage is a 2024 owner-occupied effective-rate planning reference; insurance and home-price figures are editorial estimates informed by public data and reviewed in August 2026. Verify them with your county assessor, insurer, or lender before relying on the estimate. See the U.S. Census housing data reference.
View sources and methodology
Tax reference: Tax Foundation 2024 property-tax data ↗. Insurance context: Insurance Information Institute homeowners-insurance data ↗. Insurance and home-price values on this page remain editorial estimates; these references do not replace a local tax bill or insurance quote.
- Tennessee property tax default: 0.52% of home value per year
- Tennessee insurance default: 0.6% of home value per year
- Interest rate: 6.5%, 30-year term, 20% down
- PMI: 0.5% of loan per year when below 20% down; modeled flat and not automatically canceled
Calculate a Tennessee Mortgage
The calculator starts with an illustrative $360,000 home, a 20% down payment, a 6.5% rate, and a 30-year term, using the Tennessee property-tax reference of 0.52% and the editorial insurance estimate of 0.6%. Adjust any value to see the monthly payment change in real time.
Adjust the numbers
Tennessee property tax and insurance defaults are pre-loaded. Edit any value.
Estimated Monthly Costs
PMI applies only when the down payment is below 20%.
Estimated Monthly Payment
Monthly Payment by Home Price in Tennessee
Using the Tennessee state-level tax (0.52%) and insurance (0.6%) defaults, 20% down, 6.5%, 30-year.
| Home Price | Loan (20% down) | Principal & Interest | Taxes | Insurance | Total Payment | Total Interest | Try It |
|---|---|---|---|---|---|---|---|
| $260,000 | $208,000 | $1,314.70 | $112.67 | $130.00 | $1,557.37 | $265,293 | Open calculator |
| $360,000 | $288,000 | $1,820.36 | $156.00 | $180.00 | $2,156.36 | $367,328 | Open calculator |
| $550,000 | $440,000 | $2,781.10 | $238.33 | $275.00 | $3,294.43 | $561,196 | Open calculator |
State-level defaults only. Replace them with your county's tax bill and an actual insurance quote for a precise figure.
What's Different About Tennessee?
Property Tax
Average effective rate ≈ 0.65% of home value per year, combining city and county levies. There is no state income tax, but local budgets still lean on the property tax.
Homeowners Insurance
Rough state-level estimate ≈ 0.60% of home value per year. Tornado and hail exposure in west and middle Tennessee can push premiums higher.
Local Variation
- Metro rates: Nashville's combined city-county rate and fast-rising prices differ from the statewide average.
- Storm exposure: West and middle Tennessee carry the highest tornado and severe-storm risk in the state.
- East Tennessee: Knoxville and the mountains generally see lower insurance risk and more moderate prices.
Compare Other State Mortgage Estimates
Texas (TX)
No state income tax, but property taxes that run near double the national average.
Florida (FL)
Hurricane-driven insurance costs can rival your principal and interest payment.
California (CA)
Prop 13 keeps rates low, but high prices and wildfire insurance shape the payment.
New York (NY)
High prices downstate and property taxes averaging 1.4% of value.
New Jersey (NJ)
The highest effective property tax rate in the US, near 2.3%.
Illinois (IL)
High property taxes on top of a heavy state and local tax burden.
Massachusetts (MA)
High prices, moderate taxes, and a 2.5% property tax levy cap.
Arizona (AZ)
Phoenix-led demand keeps Arizona a top buyer destination.
Georgia (GA)
Atlanta-led growth with property taxes near the national average.
North Carolina (NC)
Lower prices and taxes, offset by coastal storm insurance.
Pennsylvania (PA)
High property taxes and municipal Earned Income Tax (EIT) shape overall housing costs.
Ohio (OH)
Affordable home prices offset by high Midwest property tax rates.
Michigan (MI)
Headlee Amendment caps assessment growth until a home is sold.
Wisconsin (WI)
High property tax rates paired with stable midwestern housing costs.
South Carolina (SC)
Low 4% primary residence tax rate, but secondary homes pay 6%.
Nevada (NV)
No state income tax, low property taxes, and a 3% primary tax cap.
Colorado (CO)
Low property tax rates offset by high home prices and wildfire insurance premiums.
Washington (WA)
No personal state income tax with strong home equity appreciation.
Virginia (VA)
Moderate real estate tax rates, but Northern Virginia home prices require careful planning.
Alabama (AL)
Lowest property tax rates in the nation offset by coastal hurricane insurance risk.
Alaska (AK)
No state sales or income tax, with property taxes levied primarily by organized boroughs.
Arkansas (AR)
Low property tax rates and affordable Midwestern housing costs.
Connecticut (CT)
High property taxes levied by individual towns without county government.
Delaware (DE)
No state sales tax, low property taxes, and strong East Coast relocation demand.
District of Columbia (DC)
Low effective property tax rate offset by high urban real estate prices.
Hawaii (HI)
Lowest effective property tax rate in the US paired with highest home values.
Idaho (ID)
Rapid home price growth supported by low property tax rates.
Indiana (IN)
Constitutional 1% property tax cap protects primary homeowners.
Iowa (IA)
High property tax rates paired with low Midwestern purchase prices.
Kansas (KS)
Moderate home prices with elevated severe weather insurance rates.
Kentucky (KY)
Moderate property tax rates and strong overall housing affordability.
Louisiana (LA)
Generous $75,000 Homestead Exemption offset by nation-leading hurricane insurance rates.
Maine (ME)
Town-level property tax millage paired with low natural disaster risk.
Maryland (MD)
Triennial assessment system with local Homestead Tax Credit caps.
Minnesota (MN)
Tiered class rates and Homestead Market Value Exclusion.
Mississippi (MS)
10% assessment ratio and low median home prices offset by Gulf hurricane insurance.
Missouri (MO)
19% residential assessment ratio with stable Midwest home values.
Montana (MT)
No state sales tax, low property tax rates, and rapid mountain market growth.
Nebraska (NE)
High property tax rates combined with high wind and hail insurance premiums.
New Hampshire (NH)
No state sales or wage income tax, funded by high local property tax rates.
New Mexico (NM)
33.3% assessment ratio and 3% annual valuation growth caps.
North Dakota (ND)
50% assessment ratio and Primary Residence Credit relief.
Oklahoma (OK)
Low property tax rates offset by high Tornado Alley insurance premiums.
Oregon (OR)
Measure 50 caps maximum assessed value growth at 3% per year.
Rhode Island (RI)
Town-level millage rates with coastal storm insurance considerations.
South Dakota (SD)
No state income tax, with property tax funding local schools and counties.
Utah (UT)
45% primary residential exemption keeps effective property taxes low.
Vermont (VT)
Statewide Education Property Tax with Homestead income sensitivity adjustments.
West Virginia (WV)
Class II 60% assessment ratio and lowest median home prices.
Wyoming (WY)
No state income tax, 9.5% assessment ratio, and mineral-revenue funded operations.
Tennessee Mortgage FAQs
State-level defaults explained, and why your real numbers will differ.
1How is this state mortgage estimate calculated?
It uses the standard fixed-rate amortization formula for principal and interest, then adds a rough state-level property tax estimate and a rough state-level homeowners insurance estimate. Tax and insurance are based on percentages of home value, not a precise quote.
2Why is this not a precise quote?
These are state-level defaults meant for quick comparison. Your actual property tax depends on your county, city, school district, exemptions, and assessed value, and your insurance premium depends on your carrier, coverage, deductible, and local risk. Replace the defaults with your own figures in the calculator for a more accurate estimate.
3How do I get a more accurate estimate?
Open the prefilled calculator for the state, then update the property tax and insurance estimates with the figures from your tax bill, insurance quote, or lender's Loan Estimate. The calculator updates in real time and runs entirely in your browser.
4Does Tennessee really have no state income tax?
Tennessee has no state income tax on wages, which makes the effective property tax rate of about 0.65% of home value the primary ongoing housing cost. Sales tax is high, but it does not show up in your monthly mortgage payment.
5Why have Nashville mortgage payments risen so fast?
Strong in-migration and limited inventory have pushed Nashville home prices well above the statewide typical of $360,000. Higher prices mean a larger loan, and a bigger dollar amount of tax even though the 0.65% rate stays low.
Calculate Your Exact Tennessee Mortgage
Open the free mortgage calculator with this page's typical Tennessee scenario prefilled, then replace the state defaults with your own home price, down payment, rate, tax, and insurance figures.
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