Property Tax by County on Cherokee Lake

How Tennessee Property Tax Works

Tennessee assesses residential property at 25% of its appraised market value. The county tax rate — expressed in dollars per $100 of assessed value — is applied to that 25% figure. The math is consistent across all three Cherokee Lake counties: take the market value of the property, multiply by 0.25 to get the assessed value, divide by 100, then multiply by the applicable county rate to get the annual county property tax bill. There is no Tennessee state income tax on any form of income, including Social Security, pension distributions, or investment withdrawals — this is a structural advantage for Cherokee Lake retirees regardless of which county they are in.

Jefferson County — South Shore, $1.43 per $100

Jefferson County covers the south shore of Cherokee Lake, including the Jefferson City market area and coves along the Holston River arm. The 2025 property tax rate for Jefferson County is $1.43 per $100 of assessed value — a rate that increased by $0.09 from the prior certified rate of $1.3431. This rate applies to residential properties assessed at 25% of appraised market value.

On a $600,000 Cherokee Lake home in Jefferson County: assessed value is $150,000 ($600,000 × 25%). Divide by 100 to get 1,500. Multiply by $1.43 to get $2,145 per year in county property taxes. On a $400,000 property: assessed value $100,000, annual tax $1,430. Some properties within incorporated town limits in Jefferson County may be subject to an additional municipal tax rate — properties specifically inside Jefferson City or other incorporated areas may carry an additional rate. Confirm with the Jefferson County Trustee (Dandridge, TN) whether any specific parcel is subject to municipal taxes beyond the county rate.

Hamblen County — Western and Southwestern Shore, $1.47 per $100 Outside Morristown

Hamblen County covers sections of Cherokee Lake on its western and southwestern shores, with Morristown serving as the primary city and service center. The Morristown Area Economic Development Council confirms the current county property tax rate as $1.47 per $100 of assessed value for property outside Morristown city limits. This is the rate that applies to most Cherokee Lake waterfront properties in Hamblen County, which are in rural or unincorporated areas outside the Morristown city boundary.

Properties inside Morristown city limits pay both the county rate and the city of Morristown's municipal rate, which has historically been in the range of $1.30 to $1.50 per $100 assessed value but is subject to change with each annual city budget process. Cherokee Lake waterfront properties in Hamblen County are virtually all outside Morristown city limits — the shoreline itself is rural — but verify the parcel's municipal status before assuming the county-only rate applies.

On a $600,000 Hamblen County property outside Morristown: assessed value $150,000, annual county tax $2,205 ($1.47 × 1,500). This is $60 more per year than the same property in Jefferson County — a modest difference at this price point. The more significant variation appears if a Hamblen County property is inside Morristown's city limits, where the combined rate could exceed $2.80 per $100. Hamblen County Trustee: (423) 586-6290.

Grainger County — North Shore

Grainger County covers the north shore of Cherokee Lake from Rutledge (the county seat) through the areas near the dam. Grainger County has historically maintained one of the lower effective property tax rates among East Tennessee lake counties — the county's rural character and lower property values keep the effective burden modest. The specific statutory rate per $100 of assessed value should be verified directly with the Grainger County Trustee before any purchase decision that depends on the Grainger County rate, as rates are set annually by the county commission and can change. The Grainger County Trustee is located in Rutledge, Tennessee.

On a $435,000 median-priced Grainger County lakefront property — the figure cited in Cherokee Lake real estate market summaries — at even the Hamblen County rate of $1.47 per $100, the annual tax would be approximately $1,599. Grainger County's effective rate is typically lower than both Jefferson and Hamblen based on available comparison data, but do not use this comparison as a substitute for a verified current rate before closing.

The Listing Price Contains None of This Information

Cherokee Lake MLS listings will show the list price, the property features, and the listing agent's contact information. They will not show the county property tax rate, the current annual tax bill calculated at that rate, or in some cases even the unambiguous county identification. A property described as “Cherokee Lake waterfront, Jefferson City area” may actually be in Hamblen County — Jefferson City is in Jefferson County, but the address describing a property as being “near Jefferson City” does not tell you the county. Pull the parcel record from the Tennessee Comptroller's Property Assessment data portal (comptroller.tn.gov) using the address or map/parcel number to confirm the county before you calculate any ownership costs.

Senior Property Tax Relief

Tennessee's Property Tax Relief program provides state-funded relief to qualifying homeowners age 65 or older with household income of $37,530 or less annually, covering taxes on the first $30,000 of market value (up to $27,000 annually in state relief). Qualified 100% disabled veterans and surviving spouses of veterans killed in action receive relief on the first $175,000 of market value without an income test. Apply through the applicable county trustee — Jefferson County Trustee in Dandridge, Hamblen County Trustee in Morristown, or Grainger County Trustee in Rutledge. Applications must be submitted annually by April 5 to apply to the current year's tax bill.