Property Tax Relief for the Elderly and Disabled with Local Option

State

Tennessee

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Credit

Benefit

The state program provides a credit for taxes on the first $30,000 of market value on which tax relief is calculated for the elderly and disabled. The benefit market value cap is adjusted annually based on the United States Bureau of Labor Statistics consumer price index for all urban consumers. 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.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Residential

Characteristics of Eligible Property

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

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Description of Eligibility Criteria

Claimants must be 65 or older or permanently and totally disabled on or before 12/31/2022 for 2022 tax year benefits. The maximum 2021 income for the 2022 tax year benefit is $31,600. The income limit is adjusted annually based on the cost of living adjustment for social security recipients as determined by the United States Social Security Administration. 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 Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

State and local government share the local tax loss

Description of State Funding for Tax Loss

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

Record ID

TN101_RR22

Footnotes

Homeowners must apply for the benefit when they receive their tax bill. There is some variation among counties and cities with application, but it is generally between October and April. The deadline to apply is 35 days after the city's or county's delinquency date.

Sources

Tenn. Code Ann. § 67-5-701 ~ 67-5-703 (in effect for 2022)
Tennessee, Comptroller of the Treasury, Property Tax Relief Program Brochure (2022)
[https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TaxReliefBrochure.pdf Accessed 02/17/2023]
View Archived Source

Metropolitan Government of Nashville and Davidson County, Tax Deferral for Elderly and Disabled Homeowners
[https://www.nashville.gov/sites/default/files/2022-10/Tax-Relief-Flyer.pdf?ct=1666292099 Accessed 02/17/2023]
View Archived Source
Tennessee Comptroller of the Treasury, Property Tax Relief
[https://comptroller.tn.gov/office-functions/pa/property-taxes/property-tax-programs/tax-relief.html Accessed 02/17/2023]
View Archived Source

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