Nashville mayor explains property tax spikes as reassessment-driven bills collide with Metro’s FY 2026 rate increase

Property values surged, and bills followed—even as the tax rate fell

Nashville officials are confronting widespread frustration over property tax bills that climbed sharply for many homeowners and businesses after Davidson County’s countywide reappraisal and Metro’s subsequent budget decisions.

The latest reappraisal showed the median home value in Davidson County was about 45% higher than at the prior appraisal. Under Tennessee’s reappraisal framework, local governments must calculate a “certified” or “equalization” tax rate designed to keep overall property tax revenue level solely from higher assessments. Even with that mechanism, individual bills can rise when a property’s assessed value increases faster than the countywide average.

In the FY 2026 operating budget, Metro set a combined property tax rate of $2.814 per $100 of assessed value, down from the prior combined rate of $3.254. At the same time, the adopted budget raised the rate above the certified equalized level, producing higher collections than would have occurred under a strictly revenue-neutral rate.

What the mayor has emphasized in public remarks

Mayor Freddie O’Connell has repeatedly framed the bill increases as primarily driven by the market value of property in Nashville, pointing to demand and price appreciation as the underlying force pushing assessments upward. In addressing concerns from property owners, the mayor has also stressed the distinction between a lower nominal tax rate and higher overall costs that can still result when assessed values rise substantially.

Metro’s budget documents describe the FY 2026 spending plan as a $3.8 billion operating budget and characterize the tax rate as among the lowest in decades for the city, while acknowledging that many residents will still face higher costs because of the reassessment.

How Metro says additional revenue is allocated

The FY 2026 plan includes major allocations for education and core services. Metro Nashville Public Schools are budgeted to receive 37.2% of the total operating budget, with the school operating budget described as 13% higher than FY 2025. The budget also identifies funding intended to replace expiring federal emergency support for schools, and it outlines investments in public safety, parks, libraries, waste services and housing initiatives.

• Operating budget total: $3.8 billion (FY 2026)
• Combined property tax rate: $2.814 per $100 assessed value (FY 2026)
• Prior combined rate: $3.254 per $100 assessed value (2021–2025)
• Reappraisal context: median home value up about 45% countywide since the last appraisal cycle

Business concerns and the state policy backdrop

Commercial property owners—particularly in high-demand corridors—have reported especially steep increases tied to reassessed values. The debate has extended to the state level, where lawmakers have considered proposals that would limit how quickly local governments can increase property tax burdens over time.

Even when the tax rate declines after a reappraisal, higher assessed values can translate into higher bills—especially when budget decisions set the final rate above the revenue-neutral level.

Appeal and review options remain a key part of the system. Property owners who believe their valuation is incorrect can pursue review through the assessor’s process, but the overall tax rate is set through Metro’s annual budget process and approved by the Metro Council.