Tennessee · TN

Tennessee Mortgage Calculator

Pre-filled for Tennessee: median home price $320,000, average property tax rate 0.66%. Adjust any slider to make it yours.

No tax on wage income.

Tennessee housing at a glance

Median home price: $320,000
Effective property tax rate: 0.66% / yr
Annual property tax (median home): $2,112
Est. monthly tax escrow: $176
State income tax: None

Sources: regional housing data 2025 (median price), state assessor averages 2024–2025 (tax rate).

Buying a home in Tennessee

The median home price in Tennessee is around $320,000 and the effective property tax rate averages 0.66%of assessed value per year. Most lenders look for a debt-to-income (DTI) ratio under 43%, meaning your total monthly debt payments (including this mortgage) shouldn't exceed 43% of your gross income.

Because Tennessee has no state income tax, your net take-home pay is higher than in comparable-income states — which directly increases how much mortgage you can qualify for under DTI limits.

A 20% down payment on the median home in Tennessee is $64,000. Putting down at least 20% eliminates private mortgage insurance (PMI), which typically adds 0.3–1.5% of the loan amount per year to your monthly payment.

Transfer tax & closing costs in Tennessee

Tennessee charges a state transfer tax of $0.37 per $100 of price (0.37%); a separate mortgage recording tax of $0.115 per $100 applies to the loan amount.

Beyond transfer taxes, total closing costs in Tennesseetypically range from 2–5% of the purchase price — including lender origination fees, title insurance, appraisal, and prepaid interest. On the median home that's roughly $6,400–$16,000.

Foreclosure & legal context

Foreclosure type: Non-judicial (trustee sale)
Security instrument: Deed of Trust
Deficiency liability: Recourse

Tennessee mortgage FAQ

What is the monthly mortgage payment for a median-priced home in Tennessee?: At the current 30-year fixed rate of ~6.81%, a $320,000 home in Tennessee with 20% down ($64,000) carries a principal-and-interest payment of ~$1,671/mo. Add property tax (~$176/mo at 0.66%) and homeowners insurance and your total is roughly $1,847/mo. Use the calculator above to adjust for your exact down payment and rate.
What is the property tax rate in Tennessee?: The effective statewide property tax rate in Tennessee averages 0.66% of assessed value per year. On a $320,000 home, that works out to roughly $2,112 per year ($176/mo). Individual county rates vary.
Does Tennessee have a state income tax?: No, Tennessee has no state income tax — no tax on wage income. This can significantly improve affordability compared to high-income-tax states.
What are the closing costs and transfer taxes in Tennessee?: Tennessee charges a state transfer tax of $0.37 per $100 of price (0.37%); a separate mortgage recording tax of $0.115 per $100 applies to the loan amount.
What type of foreclosure does Tennessee use?: Tennessee uses non-judicial (trustee sale) foreclosure, which typically moves faster than court-supervised processes.

Mortgage calculators by state

← Back to the main mortgage calculator