Why A Local Property Reassessment In Tennessee Matters To Investors Everywhere

[Tyson Scheutze]

This week, I am turning it over to William Owen. He discusses Tennessee’s scheduled four-year property reassessment and what it means for real estate investors.

In 2025, Hamilton County, TN, is undergoing its scheduled four-year property reassessment—a process designed to bring property values up to current fair market conditions. On the surface, this might seem like a hyper-local event. But for real estate investors, especially those with portfolios across states or regions, it’s part of a much bigger story: how reassessments can reshape returns, risk, and strategy.

Here’s what’s happening in Hamilton County—and what every investor should take away from it.

Why Reassess Now?

Hamilton County’s last reassessment was in 2021, and the next one is scheduled for 2029. This 2025 cycle is based on fair market conditions as of January 1, 2025. The updated values will be used for tax years 2025–2028.

Reassessments don’t mean automatic tax hikes—they’re meant to keep values aligned with the actual market so taxation is fair across the board.

How Property Values Are Determined

The Assessor’s Office uses comparable sales data from 2021 through 2024, along with physical inspections and other relevant factors, to establish your property’s market value. You’ll receive a reassessment notice between April and May 2025, showing what your property would likely sell for on January 1, 2025.

For example, residential property values in the county have increased around 59% since 2021—so a bump in appraised value is expected for many.

Understanding Assessment and Taxation

Here’s the breakdown:

• Appraised Value = estimated market value of your property
• Assessed Value = a portion of the appraised value used to calculate taxes
  • 25% for residential and farm properties
  • 40% for commercial and industrial properties

Even though appraised values are rising, Tennessee state law requires the process to be revenue-neutral. That means the total amount of tax revenue collected by local governments shouldn’t increase just because property values did.

To ensure that, the county will calculate a certified tax rate that brings in the same total revenue as before—unless local governments vote to raise it.

Appeals & Reviews: What to Do If You Disagree

If you believe your new value is off, you can request an informal review by submitting supporting documentation (such as comps or a recent appraisal).

Deadlines for informal reviews:

• Residential properties – May 9, 2025
• Commercial properties – May 16, 2025

If needed, you can file a formal appeal by June 6, 2025. Owners should be able to file by June 6th even if they haven’t filed informally. That’s been my experience in the past.

What to Expect as a Property Owner

Most property owners will see a shift in their appraised value:

• Some one-third will see an increase
• Some will stay roughly the same
• Some may see a decrease

Important note: A higher appraised value doesn’t always mean a higher tax bill. Your final bill depends on where the certified tax rate is set, which will be announced around mid-July 2025. If local governments stick to that rate, your taxes may stay flat—even if your property value rose.

What You Should Do

Here’s how to stay ahead of the game:

1. Review your reassessment notice carefully when it arrives in April or May.
2. If you disagree, gather your comps or recent appraisals and submit an informal review request before the deadline. If this informal deadline has passed you can file a formal appeal to the assessor.
3. Stay informed about your local government’s decisions on tax rates—this will ultimately impact your bill.

Summary Table: Key Dates and Facts

Milestone	Date
Valuation Date	January 1, 2025
Notices Mailed	April–May 2025
Informal Review Deadline (Residential)	May 9, 2025
Informal Review Deadline (Commercial)	May 16, 2025
Formal Appeal Deadline	June 6, 2025
Certified Tax Rate Announced	Mid-July 2025
Tax Years Affected	2025–2028

What Smart Investors in Other Markets Should Do

• Track reassessment cycles in all markets where you hold or plan to invest.
• Review how each jurisdiction handles tax rate adjustments (e.g., is there a certified rate? Voter approval required to raise it?).
• Stress-test your deals against potential future property tax increases—even in “stable” or low-tax markets.
• Watch for shifts in tax burdens: After reassessments, some asset classes (especially commercial) may carry more of the load.

Sources:

6. ut-reappraisal-process-impacting-property-tax-calculations 
7. HTTPS://CHATTAMATTERS.COM/WHAT-YOUR-HAMILTON-COUNTY-PROPERTY-REAPPRAISAL-MEANS-FOR-YOUR-TAX-BILL/