Not sure if your Sevierville home owes city taxes, county taxes, or both? You are not alone. With Sevierville addresses that sit inside or outside city limits, the rules can feel confusing when you budget or plan a purchase or sale. This guide breaks down city vs. county taxes, shows you how bills are calculated, and flags special items for short‑term rentals and tax relief. Let’s dive in.
City vs. county at a glance
Inside Sevierville city limits: You typically pay both the Sevier County property tax and the City of Sevierville property tax.
Outside city limits: You generally pay only the Sevier County property tax. Special districts may also apply in some areas.
Tennessee also imposes state rules for assessment and sales tax. Different offices handle each part, so knowing who does what makes life easier.
How Sevierville property tax works
Assessment and rates
Tennessee sets assessment percentages by property type. Most homes are assessed at 25 percent of appraised market value. Commercial and industrial property is assessed at 40 percent. You can review these percentages on the Tennessee Comptroller’s assessment guide: state assessment rules and glossary.
For reference, the City of Sevierville’s recent published municipal rate is 0.4254 per 100 dollars of assessed value. Policy research has reported Sevier County’s 2023 countywide rate at about 1.48 per 100 dollars of assessed value. See the county context here: Sycamore Institute property tax analysis. Always confirm the current adopted rates with the county trustee and the city finance office before you calculate your bill.
Example bill calculation
Use this simple four‑step process for a home inside city limits:
- Appraised value example: 300,000 dollars.
- Assessed value: 25 percent of appraised value = 75,000 dollars.
- Convert to units of 100 dollars: 75,000 ÷ 100 = 750.
- Multiply by the combined rate: if county is 1.48 and city is 0.4254, total is 1.9054. Calculation: 750 × 1.9054 ≈ 1,429.05 dollars for the year.
This is an example only. Check your most recent appraisal and the current year’s adopted rates before you plan your budget.
When bills are due
In Tennessee, property taxes are due and payable each year starting in October under state law. Local collecting officials set practical billing and last‑day‑to‑pay dates. Many Sevierville owners see city bills issued on October 1 with a last day to pay around February 28. For the legal framework on due dates and collections, review Title 67 of Tennessee law. Always follow the dates printed on your actual bill.
Who to contact
- Assessment or classification questions: Sevier County Assessor of Property.
- Payments, receipts, or delinquent status: Sevier County Trustee.
- City property and hospitality taxes: City of Sevierville Finance.
Short‑term rental and business taxes
City hospitality taxes inside city limits
If you operate a cabin, Airbnb, restaurant, or attraction inside city limits, Sevierville levies local hospitality taxes that you collect from customers and remit to the city. Current postings list a 3 percent lodging tax, 2 percent restaurant tax, and 2 percent amusement tax. Registration and filing are required.
Sales and use tax on rentals and purchases
Short‑term rentals and guest purchases are generally subject to state and local sales tax. Many addresses in Sevier County experience a combined rate near 9.75 percent. For rate context by locality, see the Sevierville sales tax overview. Marketplaces may collect some taxes for you, but you are still responsible for correct registration and compliance.
Operators should also review the Tennessee Department of Revenue’s guidance on sales, occupancy, and marketplace collection for STRs: Department of Revenue hot topics.
How STR use can change your assessment
Property used for STR activity can affect classification. A single hosted unit in a residence may still be residential at 25 percent assessment. Multi‑unit or clearly commercial operations may be classified as commercial at 40 percent. That shift has a big impact on your bill. If you host or plan to, discuss your setup with the Sevier County Assessor to confirm how your property is classified.
Tax relief options
State property tax relief
Tennessee offers a state‑funded Property Tax Relief program for qualifying elderly and disabled homeowners and certain disabled veterans or surviving spouses. It is a reimbursement program, not an exemption, and has income and eligibility rules. Start with the Comptroller’s page: Tennessee Property Tax Relief program. Apply through the Sevier County Trustee or the appropriate municipal office.
Disabled veteran relief
State law provides property tax relief for certain disabled veterans and surviving spouses, with caps and eligibility rules set in statute and budget. Review the legal framework here: Tennessee Code 67‑5‑701. Confirm current thresholds with the Trustee’s office.
Local supplements or deferrals
Counties and cities may adopt optional supplements, freezes, or deferrals in limited situations. Availability varies by jurisdiction. Ask the Sevier County Trustee and the City of Sevierville finance office whether any local programs are active for the current year.
Tips for buyers and sellers
Prorations at closing
In most East Tennessee closings, the title company prorates property taxes between buyer and seller based on the closing date and the current bill cycle. If you are selling, clear any past‑due amounts to avoid liens. For lien and collection rules, see Title 67 of Tennessee taxes and licenses.
Verify your numbers
Use these quick steps before you budget or make an offer:
- Check current city rates and hospitality tax details on the City of Sevierville taxes page.
- Confirm the adopted county rate and get contact info for the Trustee and Assessor via the Sevier County directory.
Ready to run numbers for a specific property or plan a move in Sevierville? Reach out for local guidance and a clear game plan. Connect with Katina Ramsey to get started.
FAQs
How do I know if my Sevierville home is inside city limits?
- Look at your tax bill and parcel info for a city levy, or ask the Sevier County Assessor or the City of Sevierville finance office to confirm.
What is the Sevierville city property tax rate right now?
- The city most recently posted 0.4254 per 100 dollars of assessed value, but you should verify the current year’s adopted rate before you calculate.
When are Sevier County and city property taxes due?
- Taxes become payable in October, and many Sevierville city bills list February 28 as the last day to pay without penalty. Follow the dates printed on your bill.
How are taxes handled if I buy or sell mid‑year?
- Closing agents usually prorate taxes between buyer and seller based on the closing date and billing cycle, then settle any unpaid amounts at closing.
What taxes apply if I run a short‑term rental in Sevierville?
- Expect state and local sales tax, plus city hospitality taxes if inside city limits. Marketplaces may collect some taxes, but you must register and file as required.
Can STR use change my property tax classification?
- Yes, some setups can shift a property from residential to commercial classification, which changes the assessment percentage. Ask the Assessor how your use is treated.
Where can I get help with property tax relief in Sevier County?
- Start with the State Property Tax Relief program and contact the Sevier County Trustee to apply and confirm eligibility for the current year.
