A plain guide for owners and buyers
How Property Taxes Work in Coffee County, TN
Property taxes are one of the first questions people ask when they compare homes in Manchester, Tullahoma and the rest of Coffee County. Here is how the system works in Tennessee, based on the State Comptroller, so you can read a tax bill with confidence.
Step 1: Appraised value
The county assessor of property sets an appraised value for each parcel. In Tennessee, counties reappraise all real property on a regular cycle of four, five or six years. Between reappraisals, values generally stay the same unless something changes, such as new construction or a demolition.
Step 2: Assessed value
Tennessee law sets the assessment ratio for residential property at 25 percent of appraised value. The Comptroller gives this example: a home appraised at $400,000 has an assessed value of $100,000. Commercial, industrial and other classes of property use different ratios.
Step 3: The tax rate
The local governments set tax rates per $100 of assessed value. The tax is the assessed value divided by 100, then multiplied by the rate. A home inside the city limits of Manchester or Tullahoma pays both the county rate and the city rate. A home in the unincorporated county pays the county rate only.
Rates change, so I do not list them here. Check the current rate with the Coffee County Trustee or the city before you budget.
Greenbelt for qualifying land
Larger tracts used for agriculture or forest, and some open space, may qualify for greenbelt, which values land at its present use. See my greenbelt guide.
Tax relief programs
The Tennessee Comptroller runs a property tax relief program. It is a reimbursement, not an exemption, so you still pay your bill. For 2026, the Comptroller lists these groups:
- Elderly homeowners age 65 or older by December 31, 2026, who own and live in the home, with combined 2025 income of $38,470 or less.
- Disabled homeowners who meet the same ownership and income rules.
- Disabled veterans and eligible surviving spouses with qualifying VA disability status. Veterans have no income limit.
Ask the Coffee County Trustee how to apply when you receive your bill.
What this means when you buy
When you look at a home, ask for the most recent tax bill and check whether the home is inside city limits. If the home was just built or remodeled, the assessed value may change once the county picks up the improvements. Your lender will usually estimate taxes for your escrow account, and your closing documents will show how the year's taxes are split between buyer and seller.
What this means when you sell
Your tax bill is useful information for buyers. Keep the most recent bill handy when you list. If you want to know what your home might sell for, request my free home value report or read What is my Manchester home worth.
Other costs to know
Tennessee also charges a recording tax when property transfers, which I cover in my seller closing costs guide.
Common questions
How is residential property assessed in Tennessee?
Residential property is assessed at 25 percent of its appraised value, according to the Tennessee Comptroller.
Do homes in Manchester pay city and county property tax?
Homes inside Manchester city limits pay both the city and county rates. Homes in the unincorporated county pay the county rate only.
Is there property tax relief for seniors in Tennessee?
Yes. The state tax relief program reimburses part of the tax for eligible homeowners 65 or older who meet the income limit, as well as some disabled homeowners and disabled veterans.
Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.