By: Ryan Cundiff | Manager – Property Tax
Tax Year 2025 is set to have a major impact for real estate property tax valuation in Tennessee. Three of the four largest counties, Davidson, Hamilton, and Shelby are set to undergo their state-mandated reassessment for the first time since 2021.
The 2021 reassessment saw huge increases across the board for most properties, but certain property types, like hotels and retail, saw only minimal increases due to market data that was highly impacted by the COVID-19 Pandemic. This ultimately resulted in a decrease in their overall tax burden as Tennessee is a revenue neutral state that decreases tax rates in reassessment years. For the 2025 reassessment, jurisdictions are going to rely on market data up to 12/31/2024, which has seen the return of historical hotel occupancy/average daily rates (ADR). With continued retail strength in certain submarkets and the Fed lowering interest rates, we expect drastic increases for all property types in these counties this go around. Owners and investors in office buildings may see relief in certain submarkets, as those remain the only property subtype that has struggled to revive in a post-pandemic marketplace.
We highly recommend Tennessee commercial real estate owners and investors partner with an experienced property tax team ahead of the reassessment notices being released in Spring 2025. With some appeal windows being as small as 30 days after mailing of value notices, a trusted partner advocating on your behalf is imperative in navigating the deadlines and tax laws associated with the upcoming reassessment. Please see below for a summary of anticipated increases as well as a timeline for when notices/appeal deadlines are set to take place:
| Davidson County (Nashville) | Hamilton County (Chattanooga) | Shelby County (Memphis) | |
|---|---|---|---|
| Estimated Reassessment Notice Release Date | May 16, 2025 | May 9, 2025 | April 20, 2025 |
| Appeal Deadline | June 13, 2025 | June 13, 2025 | June 30, 2025 |
| Overall Expected Value Increase | 25% – 50% | 20% – 40% | 15% – 30% |
Invoke Tax Partners’ best-in-class team of Tennessee property tax professionals will be updating commercial real estate owners and investors as news pertaining to the reassessment continues to roll out. It is not too early to reach out to a property tax professional to begin navigating this reassessment process. Contact us today to ensure your approach to reassessment appeals is optimized, resulting in maximum value reductions and ensuring that you only pay what is fair and equitable on your Tennessee portfolio. Learn more about our client-centric approach to property tax here.
