There are two primary property tax classifications in Davidson County: Urban Services and General Services. The Urban Services District’s taxes are slightly higher because of the extra services provided in that area, such as trash pick up, recycling, etc. Belle Meade, Ridgetop, and Goodlettsville are the only cities in Davidson County that have separate city taxes.
Davidson County taxes are paid in arrears, meaning when your tax bill comes due on October 1, 2020, it is for the 2020 year, not the upcoming 2021 year. The tax rate at the beginning of 2020 was $3.155. On June 17, Metro Council approved the increase to $4.221 per $100 of assessed value for property located in the Urban Services District. General Services’ tax rate is $2.755 per $100 of assessed value.
If your taxes are currently being escrowed with your mortgage payment each month you can expect to see an increase in your monthly payment. When taxes come due in October, your escrow account will most likely be short. In an effort to prevent the shortage, you can check with your mortgage company now to see if you can make a one-time payment to your escrow account.
Home Price $350,000
Assessed Value: $350,000x.25=$87,500
Previous Tax Rate: $87,500/100 x 3.155 =$2,760
New Tax Rate: $87,500/100 x 4.221 =$3,693
Increase of $933
If you don’t make the one-time payment in October to catch up on your escrow account, you would see an increase in your monthly mortgage payment by $155/ month vs. $77 because you have to cover 2020 taxes in addition to the shortage for 2021 taxes. How the shortage is handled will be based on how your mortgage servicer plans to handle this and if you want a one-time payment or to spread it out over the next year.
If you sold or purchased a home in 2020, when the tax bill comes due you may want to check with your title company to see if the tax prorations collected at closing included the increase. If the proration did not include the increase, the seller may be able to help cover their portion of the taxes due.
While no one likes a property tax increase, Davidson County rates are still considerably lower than many other large cities. The most recent increase will help fund our public school system, police force, and district employees.
Check your property tax bill HERE
Calculate your taxes HERE
General Property Tax Questions can be found HERE
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