These rates seem quite high. How do property taxes work in Tennessee? Does a house worth $300,000 really accrue an annual tax bill of more than $14,000? And that doesn't include Knox Co. taxes?

Here in Massachusetts, my tax rate is about $14 per thousand, or less than a third of the nominal rate in Tennessee. Our assessments track reality pretty since reform maybe 20 years ago. Reassessments are done frequently - at least every three years. Does Tennessee still rely on last sale price? Are newer assessments discounted?

(No doubt we make it up in other taxes. I'm just looking to compare property taxes.)

It's on assessed value, which I think is usually about 25% of the actual?

The figure noted on the comptroller's office website is the combined city/county tax rate. The city of Knoxville rate is $2.46 per $100 of assessed value. The Knox County rate is $2.36 per $100 of assessed value.

For residential property, assessed value is equal to 25 percent of the appraised value. For commercial property, assessed value is 40 percent of the appraised value.

For a house assessed for tax purposes at $300,000 in the city of Knoxville, the combined city/county annual tax bill would come to $3,615.

The appraised value, as determined by the property assessor's office, doesn't necessarily reflect the market value. Typically, the appraised value is lower than the market value, though the housing bust has probably messed with that rule of thumb in many individual cases.

Scott Barker
KNS

Good point about appraised values. With reapportionment, tax rates are adjusted so revenue remains neutral. The tax rate in 2007 was higher at $5.50 ($2.81 for the city).

That means property values increased between 2007 and 2009 for tax purposes. Curiously, the National Association of Realtors says the Knoxville metropolitan area median home price was $156,400 in 2007 v. $141,400.

State and local

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According to CNN article that refers to states and the highest populated 792 counties in the US.

New Jersey residents pay the highest annual tax bill of any state - a median $6,579 per year

Connecticut comes in second place ($4,738), followed by New Hampshire ($4,636) and New York ($3,755).

The lowest-taxed homeowners live mostly south of the Mason-Dixon Line, with Louisianans the lowest taxed of all. The median there is a microscopic $243. Other low-tax states are Alabama ($398), West Virginia ($464), and Mississippi ($508).

Westchester County, N.Y., has the highest property taxes of all 792 high-population counties (65,000 and up) in the United States. The median of $9,044 is more than four times the national median

On the other end of the county spectrum are Apache County, Ariz. ($135)

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