Property Tax Relief for the Elderly and Disabled with Local Option

Tennessee

2021

No Variation in Receipt of Benefits

Credit

The state program provides a credit for taxes on the first $29,100 of market value on which tax relief is calculated for the elderly and disabled. The benefit is annually increased to reflect inflation as measured by the consumer price index for all urban consumers. Percentage change must be between 0%-3%. Local option may provide for an additional credit, not to exceed the total taxes.

Direct payment to taxpayer

Residential

Eligibility is limited to the applicant's place of residence.

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Claimants must be 65 or older or permanently and totally disabled on or before 12/31/2021 for 2021 tax year benefits. The maximum 2020 income for the 2021 tax year benefit is $31,190. Claimant must own and use property on which they apply as their primary residence. Homeowners who are temporarily relocated for health care to hospitals, homes, or intermediate care facilities will continue to qualify for property tax relief so long as they intend to return to their primary residence. Annual income is adjusted annually to reflect the cost of living adjustment for social security recipients. Income limit is a broad and inclusive definition to include Social Security and SSI income, retirement and pension benefits, VA benefits, etc.

Local government is unable to exercise an option

Local option regarding program features

State and local government share the local tax loss

The state reimburses taxpayers for their local taxes paid. Local option programs are funded locally.

TN101_RR21