The City of Memphis charges its own property tax on every home and business inside city limits, collects a 2.75% local sales tax that pushes the combined rate to 9.75%, administers Tennessee’s business tax for Memphis businesses, and adds an occupancy tax to hotel stays. The Memphis city tax most residents deal with directly is the property tax, and it arrives on a separate bill from the Shelby County property tax, with a different rate and a different deadline.
The City Property Tax Is Separate From the County Bill
If you own property in Memphis, you get two property tax bills each year: one from the city and one from Shelby County. Both are based on the same appraised value set by the Shelby County Assessor, but the rates differ and you pay them through different offices. The city tax funds Memphis services like police, fire, and roads. The county tax funds county-level services and schools.
The Memphis City Council sets the city rate each year during the budget process, expressed as a dollar amount per $100 of assessed value. For tax year 2024, the Memphis city rate was $3.1954 per $100 of assessed value.1Shelby County Trustee, TN. Tax Rates – City of Memphis The rate can shift noticeably after a countywide reappraisal, when the council often adjusts it downward to offset rising values.
How Your Memphis Property Tax Is Calculated
The appraised value of your property is multiplied by an assessment ratio fixed by state law to produce the assessed value, which is what your bill is actually based on. The ratios are:2Tennessee Comptroller of the Treasury. How to Calculate Your Tax Bill
- 25% for residential and farm property
- 40% for commercial and industrial property
- 30% for business personal property3Tennessee Comptroller of the Treasury. Tangible Personal Property
Take the assessed value, divide by 100, and multiply by the city rate. A home appraised at $200,000 has an assessed value of $50,000. At a rate of $3.00 per $100, the city bill would be $1,500. The Shelby County bill is calculated the same way at the county’s own rate, and comes on top.
When and How to Pay
Memphis city property taxes are due by August 31. Any balance remaining after that date is delinquent.4The City of Memphis. Treasury This is not the Shelby County deadline, which falls on the last day of February the following year.5Shelby County Trustee, TN. Payment Deadlines and Mailing Payments Mixing them up is a common and expensive mistake.
You can pay online through the city’s ePayments portal using a credit card, debit card, or electronic check; a small convenience fee applies. Look up your bill with your tax parcel number, the property address, or the owner’s name as it appears on the deed.6City of Memphis. City of Memphis ePayments Site You can also pay in person at City Hall or mail a check or money order to the City Treasurer. Payments usually post within three business days.
What Happens if You Pay Late
Interest on delinquent Memphis property taxes runs at 1.5% per month, or 18% a year, starting September 1. Real estate and state-assessed property that stays unpaid for a full year is turned over to delinquent tax attorneys the following February 1. Business personal property taxes are referred to attorneys after just one month of delinquency.7The City of Memphis. Tax Information
If the balance stays unpaid long enough, the property can be sold at a public tax sale managed by the Chancery Court Clerk and Master’s Office.8Shelby County, TN. Tax Sale Information Losing a home to a tax sale is one of the few ways an owner can be forced out of a property, which is reason enough to treat the August 31 date as fixed.
Relief for Seniors, Disabled Homeowners, and Veterans
Tennessee funds three property tax relief programs, and Memphis participates in all of them. These programs reimburse part of your tax rather than exempting you from paying, so you still pay the bill on time and receive the benefit afterward.
- Homeowners 65 and older whose total household income falls below an annual state limit. For 2025, the Shelby County income limit was $37,530.9Shelby County Trustee, TN. Tax Relief
- Totally and permanently disabled homeowners, under the same income limit regardless of age.10Municipal Technical Advisory Service. Property Tax Relief for the Elderly and Disabled
- Severely disabled veterans and their surviving spouses, on the first $175,000 of market value, with no income limit.11Tennessee Department of Veterans Services. Property Tax Relief for Disabled Veterans
Expect to provide proof of age, proof of income (a federal return or a Social Security 1099), and documentation of disability where it applies. The income ceiling adjusts each year with the Social Security cost-of-living figure, so check with the Shelby County Trustee for the current year’s number.
Property Tax Freeze
A separate program freezes the tax amount on a qualifying homeowner’s primary residence at whatever it was the year they first qualified, even if values or the rate climb later.12Tennessee Comptroller of the Treasury. Property Tax Freeze You must be 65 or older. The income threshold is higher than for the relief program: for 2024, the Shelby County freeze income limit was $61,920 for everyone on the deed combined.13Shelby County Trustee, TN. Do I Qualify for Tax Freeze? If you qualify for both the freeze and the relief program, they stack: your bill stays frozen, and relief reimburses part of that frozen amount.
Appealing Your Assessment
If the Assessor’s appraised value looks too high, you can challenge it at no cost. Appeals go to the Shelby County Board of Equalization, which begins meeting May 1. The filing deadline is June 30 of the tax year, and missing it typically forfeits your appeal rights for that year.14Shelby County Trustee, TN. Appeal the Appraised Value of Your Property
The burden is on you to show the appraisal is wrong. Successful appeals usually rely on recent sales of comparable nearby properties or photographs showing conditions that reduce value. You can file online through the Board’s eFiling portal or by mailing a paper petition, and you’ll get a hearing notice at least two weeks before your date.15Shelby County Government. Frequently Asked Questions – Board of Equalization Keep paying your bill on time while the appeal is pending; if you win, you get a refund or credit for the overpayment.
Sales Tax
Memphis charges the full 2.75% local option sales tax allowed by Tennessee law, on top of the state’s 7% rate,16Tennessee Department of Revenue. Sales and Use Tax for a combined 9.75% on most purchases.17Tennessee Department of Revenue. Local Sales Tax The state portion on groceries is reduced, but the local 2.75% still applies to food. Retailers collect and remit the tax automatically, so the main place you’ll notice it is on large purchases.
Business Tax
Tennessee’s business tax applies to most entities engaged in business activity for profit and is calculated on gross receipts.18Justia. Tennessee Code 67-4-701 – Short Title – Nature of Tax – Legislative Intent It functions as a substitute for local ad valorem tax on business inventory. Memphis businesses are subject to it like businesses elsewhere in the state.
The Tennessee Works Tax Act eliminated the annual filing requirement for businesses with gross sales under $100,000 within a county or city, effective for tax periods ending on or after December 31, 2023. Above that threshold, businesses still file and pay based on classification (retail, wholesale, services, and so on) and gross receipts. Businesses that pay tangible personal property tax can take a credit against their business license for the amount paid to the city and county.
Hotel and Motel Occupancy Tax
Hotel, motel, and short-term lodging guests inside Memphis city limits pay a city occupancy tax on the room charge. As of early 2025, the Memphis city hotel-motel rate was 3.5%, with the City Council having considered raising it to the state-allowed maximum. The city tax stacks on top of state sales tax, a county hotel-motel tax, and a $2-per-night Tourism Improvement District fee in place since 2016. The combined load often adds 15% or more to the base room rate before the flat per-night fee.
Residents don’t pay this on their own bills unless they book a room in the city. If you run a hospitality business, the occupancy tax is a cost to understand and disclose to guests.