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Memphis property tax: how your bill is actually set
Property tax is the single largest source of local revenue for both the City of Memphis and Shelby County. If your home is inside the city limits, you pay two separate bills: one set by the Memphis City Council and one set by the Shelby County Board of Commissioners. Outside the city limits, you get the county bill only.
The formula
Tennessee does not tax full market value. It taxes an assessed value, which is a fixed share of the appraised value set by the Shelby County Assessor:
- 25% - residential and farm property
- 40% - commercial and industrial property
- 30% - tangible personal property used in business
Worked example
A home appraised at $200,000 has an assessed value of $50,000 (25%). Divide by 100 to get 500 taxable units. Multiply by each rate. At a county rate of $2.70 per $100, the county portion is $1,350. The city portion is calculated the same way using the rate the City Council adopts each June, and the two bills are added together.
Who sets the rates, and when
Both rates are political decisions made during budget season, not automatic calculations. The Shelby County Commission passed its fiscal 2027 budget on June 29, 2026 with a property tax rate of $2.70 per $100 of assessed value, one cent above the prior year. The Memphis City Council sets the city rate separately, generally in mid to late June, based on the budget submitted by the administration. Mayor Paul Young presented an $898 million fiscal 2027 operating budget in April 2026 with no new tax increase proposed.
For the rate currently in force, the authoritative sources are the City of Memphis tax information page and the Shelby County Trustee tax calculator.
Reappraisal: why your bill moves
Shelby County reappraises property on a four-year cycle, with the most recent county-wide reappraisal taking effect in 2025. A reappraisal is supposed to be revenue neutral: state law requires a certified tax rate that raises the same total revenue as before, so rising values alone should not increase collections. Any rate adopted above the certified rate is a tax increase, and it has to be voted on in public. That vote is the number worth watching, not the appraisal notice in your mailbox.
Appeals and deadlines
- Disagree with your appraised value? Appeal to the Shelby County Assessor first, then to the county Board of Equalization, then to the State Board of Equalization.
- City of Memphis taxes are delinquent after August 31 and accrue interest of 1.5% per month, or 18% annually.
- Tax relief and tax freeze programs exist for qualifying older, disabled, and veteran homeowners, and are applied for through the Trustee's office.
- Payments in lieu of taxes (PILOTs) remove property from the regular tax roll for a set term. They are a major reason two similar buildings can carry very different bills.