Are you trying to make sense of your Collierville property tax bill? You are not alone. When you understand how taxes are calculated and billed in Shelby County, you can budget with confidence and avoid surprises at closing or when your mortgage payment changes. This guide walks you through how assessments work, who collects payments, what to expect with escrow, and where to find official information. Let’s dive in.
How Shelby County calculates your tax
Shelby County starts with your home’s appraised market value. Tennessee then applies a statutory assessment ratio to determine your taxable value. For typical owner-occupied residential property, the assessment ratio is 25 percent, as outlined in the Tennessee Comptroller’s guidance on assessment ratios.
Your tax bill uses the assessed value, not the full appraised value. The formula is straightforward: tax due equals the assessed value divided by 100, multiplied by the combined tax rate (shown as dollars per $100 of assessed value). The combined rate includes the county rate, Town of Collierville rate, and any other applicable levies.
Example calculation (illustrative only)
- Market value: $400,000
- Assessment ratio: 25 percent, so assessed value is $100,000
- If the combined rate were $4.50 per $100 assessed, annual tax would be ($100,000 ÷ 100) × $4.50 = $4,500
- Monthly budget estimate: $375
Note: Rates change over time. Always confirm current levies with the Shelby County Trustee and the Town of Collierville.
What makes up your Collierville bill
Several pieces can appear on a Collierville homeowner’s tax bill:
- Municipal taxes set by the Town of Collierville for properties inside town limits.
- Shelby County taxes for countywide services and special levies if applicable.
- School-related levies and any special districts based on boundaries.
- Other recurring municipal charges, such as solid waste or stormwater, which may appear on separate town statements depending on local practice.
To confirm what applies to your parcel, review your latest bill or use county property tools via the Shelby County website.
When and how to pay
Shelby County, through the Trustee’s office, handles tax billing and collection for many jurisdictions. The county mails notices after assessments and rates are finalized. Due dates, discounts, and penalties follow a set schedule each year. Since timing can change, verify current deadlines and payment options with the Trustee via the Shelby County website.
If you live inside town limits, you can also find municipal tax information on the Town of Collierville’s official site. Keep both county and town notices on your calendar to avoid penalties or interest.
If you have a mortgage escrow
Most lenders collect a monthly escrow amount for property taxes and homeowners insurance. They estimate your annual tax, divide by 12, and add that amount to your mortgage payment. Each year the lender completes an escrow analysis. If your tax bill rises, your escrow payment may increase. You will receive a statement showing any shortage or surplus and your options.
If you do not escrow, set aside funds monthly so the annual bill is not a shock. A quick way to budget is to estimate the annual tax using the assessment method, then divide by 12. You can use a simple tool like the Bankrate mortgage calculator to test different monthly scenarios.
Reappraisals, appeals, and relief
Shelby County conducts periodic reappraisals to align appraised values with market conditions. After a reassessment, your appraised value can go up or down, which affects the assessed value. Watch for valuation notices from the Assessor of Property and review them promptly.
If you disagree with your assessed value, you can request an informal review with the Assessor. Formal appeals typically proceed to a Board of Equalization and may continue to state-level bodies if needed. Deadlines are strict, so follow the instructions and timelines provided on the county site.
Tennessee also offers relief and exemption programs for eligible homeowners, which may include seniors, disabled taxpayers, or veterans. For details on programs and local application steps, start with the Tennessee Comptroller and check the Shelby County site for local procedures.
Look up values, rates, and bills online
Here are reliable starting points for official information:
- Shelby County portal: Use links to the Assessor for property records and appraisal data, and to the Trustee for tax payment options and deadlines on the Shelby County website.
- Town of Collierville: For town-specific levy information or questions about municipal charges, visit the Town of Collierville’s official site.
For any parcel, the county’s property search will show appraised value, classification, and tax history. Your exact combined rate appears on your bill or parcel page.
Quick buyer checklist
Before you write an offer:
- Get the seller’s most recent tax bill or pull the parcel page from the county site.
- Cross-check the tax estimate using the 25 percent assessment ratio and the current combined rate for the property.
- Ask about special assessments or pending projects that could change taxes.
Before closing:
- Confirm with your lender how much they plan to collect monthly for escrow.
- Make sure your purchase contract includes tax proration language.
After you move in:
- Watch for valuation notices from the Assessor and respond within appeal windows if needed.
- Track Trustee mailings for due dates if you pay taxes directly.
Plan your move with confidence
Understanding how Collierville property taxes work helps you budget calmly, compare homes wisely, and avoid surprises at closing. If you want a walkthrough of your specific situation, local guidance makes all the difference. Schedule a Consultation with Deanna Wardlaw to get clear next steps tailored to your home and goals.
FAQs
How do I estimate property taxes before buying in Collierville?
- Start with market value, multiply by 25 percent to get assessed value, then apply the current combined rate shown as dollars per $100 of assessed value; divide by 12 for a monthly estimate.
When are Shelby County property taxes due and who collects them?
- The Shelby County Trustee bills and collects many local taxes after rates are set each year; confirm current due dates and payment options on the county website.
What happens to my mortgage payment if taxes change?
- Your lender performs an annual escrow analysis; if taxes rise, your monthly escrow amount may increase or you may need to cover a shortage.
How do appeals work after a reassessment in Shelby County?
- You can seek an informal review with the Assessor, then file formal appeals according to the Board of Equalization process and deadlines provided by the county.
Will property taxes be prorated at a Tennessee closing?
- Yes, taxes are typically prorated between buyer and seller according to contract terms and local custom; review your Closing Disclosure for details.
Are HOA dues included in Collierville property taxes?
- No, HOA dues are separate from property taxes; some municipal fees may be billed by the town on separate statements.
