Tax rates in Murfreesboro, Tennessee come down to two main bills. Retail purchases carry a combined sales tax of 9.75%, and property owners inside city limits pay a combined property tax of $2.8288 per $100 of assessed value. Tennessee does not tax personal income, so these two taxes do most of the work of funding state and local government.
Sales Tax: 9.75% on Most Purchases
The 9.75% rate breaks down into a 7% state rate and a 2.75% local rate authorized by Rutherford County. The Tennessee Department of Revenue collects both portions.1TNECD. Rutherford County – Section: Sales Tax It applies to most physical goods and to services like telecommunications and laundry.2Tennessee Department of Revenue. SUT-13 Sales and Use Tax Rates Overview
Groceries get a lower rate. Food sold for home consumption is taxed by the state at 4% instead of 7%, but the 2.75% local portion still applies, so the total grocery rate is 6.75%.3Tennessee Department of Revenue. Due Dates and Tax Rates
Large Purchases: The Single-Article Cap
Buying something expensive, like a car or a major appliance? The local 2.75% tax only applies to the first $1,600 of the item’s price. A state surcharge of 2.75% then kicks in on the portion between $1,600 and $3,200, and beyond $3,200 only the 7% state rate applies.4Tennessee Department of Revenue. Single Article and Special Tax Rates The cap works per item, not per receipt, so three separate $2,000 purchases each get their own $1,600 local-tax limit.5Tennessee Department of Revenue. SUT-6 Single Article Tax Overview and Application
Property Tax: Two Bills, Combined Rate of $2.8288
Homeowners inside the city pay separate levies to the city and the county every year. Current rates reported by the Tennessee Comptroller:
- City of Murfreesboro: $0.9526 per $100 of assessed value
- Rutherford County: $1.8762 per $100 of assessed value
- Combined: $2.8288 per $100 of assessed value
If you live in unincorporated Rutherford County outside any city, you pay only the county portion of $1.8762.6Tennessee Comptroller of the Treasury. Rutherford County Assessment Summary – Section: Property Tax Rates The city council sets its rate as part of each annual budget, so the number can change from year to year.7City of Murfreesboro. Property Taxes
How to Turn the Rate Into a Dollar Amount
Your bill is not calculated on the full appraised value of the property. Tennessee first applies an assessment ratio based on how the property is classified:
- Residential and farm property: 25% of appraised value
- Commercial and industrial property: 40% of appraised value
- Public utility property: 55% of appraised value8Justia. Tennessee Code 67-5-801 – Classification and Rate of Assessment
Business tangible personal property is assessed at 30% of depreciated value.9Tennessee Comptroller of the Treasury. Tangible Personal Property
Here is the math for a $400,000 home. Multiply by the 25% residential ratio for an assessed value of $100,000. Divide by 100 to get 1,000 units, then multiply by the combined rate of $2.8288. That comes to about $2,829 a year.10Tennessee Comptroller of the Treasury. How to Calculate Your Tax Bill The Rutherford County Assessor sets the appraised value, and you can look up your property on the assessor’s website.11Rutherford County, TN. The Property Assessor
Programs That Can Lower Your Property Tax
Tennessee runs three relief programs that can reduce or freeze a Murfreesboro homeowner’s bill. Each one requires an application, and income limits apply.
Elderly or Disabled Relief
Homeowners who are 65 or older, or permanently and totally disabled, can receive a state reimbursement of the tax levied on the first $33,600 of appraised value. Total household income from all sources must fall below a limit that adjusts each year with the Social Security cost-of-living increase.12Tennessee Comptroller of the Treasury. Property Tax Freeze
Senior Tax Freeze
A separate program freezes the dollar amount of your tax bill so it does not rise even if rates or assessments go up. You must be at least 65 by year-end, and household income cannot exceed the county limit. For 2026, the statewide base income limit is $63,470. Rutherford County participates in the freeze.12Tennessee Comptroller of the Treasury. Property Tax Freeze
Disabled Veteran Reimbursement
Veterans rated 100% permanently and totally disabled qualify for a state reimbursement on the first $175,000 of their home’s full market value. You still pay the bill and are reimbursed afterward.
When Property Taxes Are Due
City and county bills are each payable between October 1 and February 28. If a payment is not received or postmarked by February 28, interest of 1.5% per month starts accruing on March 1 and compounds on the first of every month after.13Tennessee Comptroller of the Treasury. Tennessee Division of Property Assessments – Assessment Schedule On a $2,800 bill, one month late means an extra $42. The county trustee also offers a monthly bank draft option for homeowners who prefer to spread payments across the year.14Rutherford County, TN. Property Tax and Payments
No State Income Tax
Tennessee does not levy an individual income tax on wages, salaries, or investment income. The state fully repealed its Hall Income Tax on interest and dividends in 2021. One practical effect is that property and sales taxes shoulder more of the local tax load than they would in a state that also taxes income.
Hotel Occupancy Tax
Short-term lodging in Murfreesboro is subject to a 5% city occupancy tax on top of sales tax. It applies to hotels, motels, and similar accommodations.15City of Murfreesboro. Hotel/Motel Taxes A guest effectively pays 9.75% sales tax plus the 5% occupancy charge on each night’s stay.