Tellico Lake Property Tax: Loudon vs Monroe County

Tennessee's Property Tax Framework

Tennessee assesses residential property at 25% of appraised fair market value. The tax rate is expressed per $100 of assessed value. On a $500,000 home, the assessed value is $125,000 regardless of which county the property is in. The county rate determines the bill. Tennessee has no state income tax on wages, retirement income, Social Security, pension distributions, or IRA withdrawals — the Hall Tax was fully repealed effective January 2021. For Tellico Lake buyers, this means property tax is the primary ongoing state-level tax obligation, making county rate identification before closing essential to accurate financial planning.

Loudon County — $1.5183 per $100 (Outside Lenoir City)

Loudon County adopted a property tax resolution effective July 1, 2024, setting the rate at $1.5183 per $100 of assessed value for properties outside Lenoir City city limits. This rate covers the majority of Tellico Village's Loudon County properties — those in the Tanasi, Toqua, and main Village sections north of the Monroe County line. On a $500,000 home assessed at $125,000: $125,000 ÷ 100 × $1.5183 = $1,898 per year. Loudon County has consistently been among the lower-rate counties in East Tennessee, partly reflecting a relatively modest public services burden for an unincorporated lakeside community and partly reflecting the area's property value base from Tellico Village. Loudon County Trustee: 865-458-6128. County seat: Loudon, at 100 Main Street, Loudon, TN 37774.

Properties within Lenoir City limits carry a lower combined rate than unincorporated Loudon County at $1.3883 per $100 for the county portion — confirmed in the same July 2024 commission resolution. Lenoir City itself is several miles from the main Tellico Lake residential market, but some properties near the northern end of the lake approach Lenoir City's boundaries.

Monroe County — $2.23 per $100

Monroe County's property tax rate is $2.23 per $100 of assessed value — confirmed from the TRDA economic development page at tellico.com/economic-development/taxes-and-incentives, which explicitly lists Monroe County industrial and commercial property tax rates as context for economic development prospects. The TRDA page lists Monroe County at $2.23 per $100. On a $500,000 home assessed at $125,000: $125,000 ÷ 100 × $2.23 = $2,788 per year. The Kahite neighborhood of Tellico Village is located approximately 10 miles south of the main Village area in Monroe County. Kahite has its own 18-hole golf course, clubhouse, tennis courts, and pool, and is part of the Tellico Village POA governance structure despite its physical separation from the Loudon County portion of the Village.

The $890 annual gap between Loudon ($1,898) and Monroe ($2,788) on a $500,000 home is material. Buyers comparing Loudon County Village properties to Kahite properties need to factor this into the comparison even when acquisition prices are similar. Over a 20-year period at current rates, the difference is $17,800. Monroe County Trustee: 423-442-2220. Assessor: 423-442-3637. County seat: Madisonville.

Vonore (Monroe County) — Add $0.35 Municipal Rate

The Town of Vonore sits in Monroe County on the eastern shore of Tellico Lake, adjacent to the Tellico Village development area. Properties within Vonore's incorporated city limits pay the Monroe County rate of $2.23 plus Vonore's municipal rate of $0.35 per $100, for a combined rate of approximately $2.58 per $100. On a $500,000 home: $125,000 ÷ 100 × $2.58 = $3,225 per year. This is the highest rate applicable to any Tellico Lake property among the three jurisdictions. Verify whether a specific Monroe County property is inside or outside Vonore city limits by confirming with the Monroe County Assessor or the Town of Vonore before closing.

Quick Reference: $500K Home Annual Tax by Jurisdiction

Based on $500,000 appraised value, TN 25% assessment = $125,000 assessed value:

• Loudon County (main Village) $1.5183 — $1,898/yr (confirmed Loudon County Commission resolution July 2024)
• Loudon County inside Lenoir City $1.3883 — $1,735/yr (same resolution; limited applicability to lake market)
• Monroe County (Kahite) $2.23 — $2,788/yr (confirmed TRDA economic development page)
• Vonore city limits (Monroe) $2.58 — $3,225/yr (Monroe $2.23 + Vonore $0.35)

Always confirm county and city boundary via the parcel number (Tax Map Number / TMS) through the Tennessee Comptroller's property assessment data at assessment.cot.tn.gov before finalizing any tax estimate. The Tellico Village POA's own addresses and plat maps do not always make the county line obvious from the property address alone.

Tellico Village POA Annual Assessments — Additional Carrying Cost

Property tax is only part of the annual carrying cost in Tellico Village. TVPOA assessments fund road maintenance, golf course operations (Tanasi, Toqua, Kahite courses), the Yacht Club marina, recreation centers (Wellness Center and Toqua Recreation Center), community security, and other shared infrastructure. The TVPOA board sets annual assessment amounts based on the community's operating budget and capital reserve needs. Current assessment amounts must be verified directly with the TVPOA at tellicovillagepoa.org or 865-458-5778, as they are set annually and subject to change. For financial planning purposes, a lake community with three golf courses, two recreation centers, and a marina typically carries annual POA fees meaningfully higher than a standard residential HOA. Budget this realistically alongside the county property tax figures above.