Property Tax by County on J. Percy Priest Lake

How Tennessee Property Taxes Work

Tennessee assesses residential property at 25% of appraised market value. That assessed value is then multiplied by the county tax rate, which is expressed in dollars per $100 of assessed value. The formula is: (appraised value × 0.25) ÷ 100 × tax rate = annual tax bill. County commissions set rates annually based on their budget needs. After a countywide reappraisal, state law requires a revenue-neutral certified rate to prevent a windfall — but counties can then vote to increase the rate above that floor if they want additional revenue. That is exactly what Davidson County's Metro Council did in 2025.

Davidson County — Nashville Metro

Davidson County is a consolidated city-county government. Most lakefront addresses in the Percy Priest area fall in the General Services District (GSD), which covers areas outside the Urban Services District core. The 2025 GSD rate is $2.782 per $100 of assessed value — the rate established by Mayor O'Connell and the Metro Council following the 2025 reappraisal that showed a 45% median countywide property value increase. The Metro Council raised the rate above the revenue-neutral certified rate, so both values and the rate increased simultaneously. Tax bills in Davidson rose substantially in 2025 as a result.

Example calculation for a $700,000 lakefront home in Davidson County GSD: $700,000 × 25% = $175,000 assessed. $175,000 ÷ 100 = 1,750. 1,750 × $2.782 = $4,869 per year in county taxes. That is the highest rate of any Percy Priest county. Davidson is also the county where Nashville Shores waterpark sits, where the dam and visitor center are located, and where I-40 provides direct access to downtown.

Rutherford County — Middle Tennessee Benchmark

Rutherford County holds the 2025 property tax rate at $1.8762 per $100 of assessed value. The Rutherford County Commission approved the most recent budget with no property tax increase, maintaining this rate. Rutherford is one of only two Tennessee counties to hold a AAA bond rating from two major credit agencies — a sign of fiscal discipline that has kept rates stable.

Example for the same $700,000 home in Rutherford County: $175,000 assessed. $175,000 ÷ 100 = 1,750. 1,750 × $1.8762 = $3,283 per year. That is $1,586 less than the Davidson example — on the same home value, at the same lake. The Rutherford County shoreline of Percy Priest includes coves accessible from Murfreesboro and Smyrna, with I-24 providing the primary corridor back toward Nashville.

Wilson County — 2026 Reappraisal Year

Wilson County completed a full countywide reappraisal effective January 1, 2026, with property values rising an average of 66.6% across the county. By state law, Wilson County must set a revenue-neutral certified tax rate that prevents the county from collecting more revenue simply because values rose. The pre-reappraisal rate of $1.9089 per $100 is now superseded. The Wilson County Assessor of Property and commissioners have indicated the preliminary certified rate will be approximately $1.1631 per $100 — a substantial drop from the old rate that partially offsets the higher assessed values. The final adopted rate will be set by the Wilson County Commission later in 2026.

Example for the same $700,000 home in Wilson County at the preliminary $1.1631 rate, assuming the reappraisal values reflect current market: $175,000 assessed. $175,000 ÷ 100 = 1,750. 1,750 × $1.1631 = $2,035 per year. At that rate Wilson County would be dramatically cheaper than Davidson and meaningfully cheaper than Rutherford on annual taxes. However: this rate is preliminary and not yet officially adopted. Confirm the final rate with the Wilson County Trustee before making any financial decisions based on it.

If your home value increased more than the county average of 66.6% in the reappraisal, your tax bill will be higher under the new system. If your home increased less than 66.6%, your bill should be lower. The reappraisal does not uniformly distribute impact — lakeshore properties that have appreciated strongly relative to inland properties may see higher effective rates than the county average suggests.

The Same-Lake Tax Gap

At current rates and preliminary estimates, the maximum spread between the highest-rate county (Davidson) and the lowest (Wilson at $1.1631 preliminary) on a $700,000 home is approximately $2,834 per year — $4,869 vs $2,035. That gap widens as home values rise. On a $1,000,000 property the difference approaches $4,000 annually. Over 20 years of ownership the compounded difference in after-tax cost of ownership is substantial. Buyers who find two similar properties on different sides of a county line should factor this math into their offer price, not treat it as an afterthought.

Municipal Rates on Top of County

Properties within city limits pay both county and city taxes. Hermitage (a Davidson County community that borders the lake) is part of the consolidated Metro Nashville government and pays the Metro rate with no additional city levy. Smyrna (Rutherford County) adds $0.5257 per $100 on top of the county rate for properties within town limits — combined rate approximately $2.4019. Mount Juliet (Wilson County) adds approximately $0.1775 per $100 on top of the county rate. Check your specific parcel's city/unincorporated status before assuming the county rate alone applies.

Senior and Disability Tax Relief

Tennessee offers a state-funded Property Tax Relief program for eligible homeowners age 65 or older, or totally and permanently disabled, with annual household income of $37,530 or less. The state pays the tax on the first $30,000 of market value (up to $27,000 in state relief). Eligible disabled veterans with 100% service-connected disability and surviving spouses of veterans killed in action qualify without an income test on the first $175,000 of market value. Apply through the county trustee's office. Davidson County also offers a tax freeze program that locks the assessed value for eligible seniors — contact the Metro Nashville Assessor for current income limits and eligibility.

How to Verify Your Parcel Before Closing

Every buyer on Percy Priest should do three things before submitting an offer. First, confirm which county the property sits in — not just which county is on the listing, but which county the actual parcel is recorded in. Second, look up the parcel on the relevant county assessor's website to confirm the current assessed value and the applicable tax rate. Third, if the property is in Wilson County, contact the Wilson County Trustee to confirm whether the 2026 certified rate has been officially adopted and what that rate is. The Davidson County Assessor is at padctn.org. The Rutherford County Trustee is at rctrustee.com. Wilson County Trustee is at wilsoncountytn.gov.

What This Means for Your Budget

Property taxes on Percy Priest range from approximately $2,000 to nearly $5,000 per year on a $700,000 home depending entirely on which county you are in. That is not a trivial number — it is $170 to $400 per month that affects your actual monthly cost of ownership and does not appear in any mortgage payment calculator. Know your county. Verify the rate. Do the math before you fall in love with a listing.