Tennessee mortgage tax
The state tax on a recorded home loan.
When you borrow to buy, your loan is secured by a document recorded with the county. Tennessee charges a tax on that recording, figured on the loan amount.
-
$0.115
per $100 of loan principal
-
$2,000
of the loan is exempt
-
Borrower
pays the tax
What a deed of trust is
A deed of trust is the document that secures most home loans in Tennessee. It names a trustee who can sell the property if the loan isn’t repaid. Like the deed, it’s recorded with the county Register of Deeds, and the tax is paid when it’s recorded.
How the tax is figured
Take the loan principal, subtract the $2,000 exemption, and multiply by $0.115 per $100.
Estimate your state taxes
- Mortgage tax
- $366
An estimate using state rates current as of September 2026. Transfer tax is figured on the price or the property’s value, whichever is greater; this uses the price. Recording fees and title premiums aren’t included. Your settlement statement has the real figures.
Examples at common loan amounts
| Loan amount | Mortgage tax |
|---|---|
| $200,000 | $228 |
| $320,000 | $366 |
| $450,000 | $515 |
| $600,000 | $688 |
Figured as (loan − $2,000) × $0.115 per $100, rounded to the dollar.
Who pays
The borrower pays it.
Paying cash?
No loan means no deed of trust, so there’s no mortgage tax. You’ll still pay the transfer tax on the deed. See cash closings.
Where the numbers come from
The rate is from the Tennessee Code (§67-4-409) and the Tennessee Department of Revenue, current as of September 2026. Rates can change. Check with your county Register of Deeds.
Next step
See every state charge in one place in Tennessee closing costs, or contact us about your closing figures.
This is general information, not legal advice. Talk to your attorney.
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