Nashville, TN Taxes 2025
Complete local tax guide and OBBBA calculator
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Nashville Tax Overview 2025
No state income tax. Growing entertainment and hospitality hub.
Local Income Tax
0%
City/county rate
Sales Tax
9.25%
State + local
Property Tax
0.63%
Effective rate
Median Home
$450,000
Home value
No Local Income Tax!
Nashville does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Nashville is located in Tennessee (0% state income tax)
💼 Nashville Local Income Tax
Nashville does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Tennessee) and federal income tax.
This is good news for Nashville residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Nashville
🛒 Nashville Sales Tax 2025
The combined sales tax rate in Nashville is 9.25%. This includes both the Tennessee sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Nashville. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Tennessee law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $4.63 | $54.63 |
| $100 | $9.25 | $109.25 |
| $500 | $46.25 | $546.25 |
| $1,000 | $92.50 | $1,092.50 |
🏠 Nashville Property Tax 2025
The average effective property tax rate in Nashville is 0.63%. Based on the median home value of $450,000, the typical homeowner pays approximately $2,835 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Nashville based on school district and other taxing authorities.
Estimated Annual Property Tax in Nashville
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $1,260 | $105 | ✓ Yes |
| $300,000 | $1,890 | $158 | ✓ Yes |
| $400,000 | $2,520 | $210 | ✓ Yes |
| $500,000 | $3,150 | $263 | ✓ Yes |
| $750,000 | $4,725 | $394 | ✓ Yes |
| $1,000,000 | $6,300 | $525 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Nashville Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Nashville Residents
Music and entertainment service workers benefit greatly from tips deduction.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Nashville resident.
Available OBBBA Deductions:
Calculate Your Nashville Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Nashville resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Nashville?
The combined sales tax rate in Nashville is 9.25%. This includes both state and local sales taxes.
Does Nashville have a local income tax?
Nashville has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Nashville?
The average effective property tax rate in Nashville is 0.63%. On a home worth $450,000, you'd pay approximately $2,835 per year.
How do OBBBA deductions benefit Nashville residents?
Music and entertainment service workers benefit greatly from tips deduction. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.