From $2.1556 to $1.3956 — What Does It Mean for Your Knoxville Property Tax Bill?

This evening, Tuesday, September 15, 2026, the Knoxville City Council took action that directly affects every property owner inside the City of Knoxville.

The City Council adopted and set the City’s new certified property tax rate at $1.3956 per $100 of assessed value, replacing the previous rate of $2.1556 per $100 of assessed value.

That is a reduction of 76 cents per $100 of assessed value, or approximately 35.3% lower than the previous tax rate.

But before everyone starts celebrating—or worrying—it is important to understand exactly what this means.

First, let’s talk about the numbers.

The City of Knoxville’s previous property tax rate was:

$2.1556 per $100 of assessed value

The new certified rate adopted today is:

$1.3956 per $100 of assessed value

That is a significant change in the tax rate.

However, your individual property tax bill is not determined by the tax rate alone.

It is determined by your property’s assessed value multiplied by the tax rate.

And this is where things can get confusing.

Appraised Value vs. Assessed Value

In Tennessee, your property has an appraised value, which is the value assigned to the property by the Knox County Property Assessor.

Your assessed value is a percentage of that appraised value.

For residential property in Tennessee, the assessment ratio is 25% of the appraised value. Commercial and industrial property is generally assessed at 40%.

For example, if a residential property has an appraised value of $400,000:

$400,000 × 25% = $100,000 assessed value

The City property tax is then calculated using that $100,000 assessed value.

Under the old rate:

$100,000 ÷ 100 × $2.1556 = $2,155.60

Under the new certified rate:

$100,000 ÷ 100 × $1.3956 = $1,395.60

That is a difference of $760 in this example.

But there is another important piece to understand.

Why Did the Tax Rate Drop So Much?

The answer is the certified tax rate process following a reappraisal.

Tennessee’s certified tax rate law is designed around what is commonly called “truth in taxation.”

Following a countywide reappraisal, property values can change significantly. The certified tax rate is calculated so that the government does not automatically collect more total property tax simply because property values have increased.

The Tennessee Comptroller explains that the certified tax rate process is designed to keep the total amount of taxes collected at the previous level following a reappraisal, before accounting for certain growth and other adjustments.

That means the drop from $2.1556 to $1.3956 does not automatically mean every Knoxville property owner will see a 35.3% reduction in their actual tax bill.

Why?

Because your property’s assessed value has also changed.

So What Will Happen to YOUR Tax Bill?

That depends on how the assessed value of your property changed compared with the overall change in the City’s tax base.

This is an important point.

A lower tax rate does not necessarily mean every property owner’s tax bill goes down by the same percentage.

If your property’s value increased substantially during the reappraisal, your tax bill could still change—even with this much lower tax rate.

The Tennessee Comptroller explains that if a property’s value increases more than the average, its individual tax bill can increase even when the certified rate is revenue-neutral. Conversely, a property whose value increased less than the average could see its tax bill remain the same or decrease.

Here’s the Bottom Line

The City of Knoxville’s tax rate is going from:

$2.1556 → $1.3956

That is a $0.7600 reduction per $100 of assessed value.

It is approximately a 35.3% reduction in the tax rate.

But don’t confuse a lower tax rate with an automatic 35.3% reduction in your property tax bill.

Your bill depends upon your assessed value.

And that assessed value is based upon the property’s appraised value.

Knoxville Property Owners Need to Pay Attention

This is one of those government actions that can get reduced to a headline:

“Knoxville Cuts Property Tax Rate.”

That headline is technically true—but it doesn’t tell the entire story.

The real question for every property owner is:

What does the new $1.3956 certified tax rate mean for MY property?

That answer starts with knowing the appraised value and assessed value of your property under the new reappraisal.

The City of Knoxville itself explains that the City does not appraise property. The Knox County Property Assessor provides the property assessment used for taxation, while the City establishes its tax rate.

So, if you’re a Knoxville property owner, now is a good time to pull out your property information and take a look.

Know your numbers.

Know your appraised value.

Know your assessed value.

And then look at what the new $1.3956 per $100 rate means for you.

One More Thing

The City of Knoxville’s previous $2.1556 rate had been in place for several years and was described by the City as its lowest property tax rate since 1974.

Now, following the 2026 reappraisal, Knoxville has a new certified rate.

The Knoxville City Council met today, September 15, at 6 p.m. in the Main Assembly Room of the City County Building.

The number everyone needs to remember is:

$1.3956

That’s the new City of Knoxville certified property tax rate per $100 of assessed value.