Quick Answer
Tennessee's homesteading laws allow for property tax exemption for up to 16.5 acres of land used for homestead purposes, and a 5-year exemption on county property taxes if certain requirements are met, such as living on the property and making improvements.
Exemption Requirements
To qualify for the homestead exemption in Tennessee, the property must be the primary residence of the owner, and the owner must be a citizen of the state. The property must also be used for agricultural, horticultural, or livestock purposes, or for other homestead uses such as gardening, orcharding, or beekeeping. The exemption is limited to 16.5 acres of land per owner, and the owner must make improvements to the property, such as building a dwelling or a barn, within 5 years of obtaining the exemption.
Tax Exemption Details
The tax exemption is applied on a county-by-county basis, and some counties may have additional requirements or restrictions. The exemption is typically applied to the county property tax, but not to the state property tax. The exemption is usually granted for a period of 5 years, after which the owner must reapply to continue receiving the exemption. In addition to the exemption, the owner may also be eligible for other tax incentives, such as a reduced rate on the property tax.
Homestead Use Requirements
To qualify for the homestead exemption, the owner must use the property for a significant portion of their income, such as farming, gardening, or other homestead uses. The owner must also be physically present on the property for at least 6 months of the year, and must make a good faith effort to maintain and improve the property. The owner must also file an affidavit with the county assessor’s office, stating their intention to use the property for homestead purposes.
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