Collierville homeowners pay two separate property tax bills on the same home: one to the Town of Collierville at $1.62 per $100 of assessed value,1Town of Collierville. Taxes and one to Shelby County at $3.39 per $100.2Shelby County Trustee, TN – Official Website. Calculate Taxes A home appraised at $400,000 carries a combined annual bill of roughly $5,010. Both rates are set each year during the budget process, so the number can shift.
How the Bill Is Calculated
Tennessee doesn’t tax your full appraised value. Residential and farm properties are assessed at 25 percent of appraised value; commercial and industrial properties at 40 percent.3Tennessee Comptroller of the Treasury. How to Calculate Your Tax Bill A home the Shelby County Assessor appraises at $400,000 has an assessed value of $100,000, and that assessed figure is what both taxing bodies apply their rates to.
The math is straightforward. Divide the assessed value by 100, then multiply by each rate.3Tennessee Comptroller of the Treasury. How to Calculate Your Tax Bill On a $100,000 assessed value:
- Town tax: $100,000 ÷ 100 × $1.62 = $1,620
- County tax: $100,000 ÷ 100 × $3.39 = $3,390
- Combined total: $5,010
After a countywide reappraisal, Tennessee law forces a rollback so the town and county don’t reap an automatic revenue windfall from higher home values. The governing body can vote to adopt a rate above that certified level, but only after public notice and a hearing. If you want to know the rate before it’s final, watch the Collierville Board of Mayor and Aldermen meetings each summer.
When and How to Pay
Property tax bills become due and payable the first Monday of October. You have until the last day of February the following year to pay without penalty.4Shelby County Trustee, TN – Official Website. Payment Deadlines and Mailing Payments Because the town and the county collect separately, you have to make two payments. The county portion goes to the Shelby County Trustee, not to Collierville.
For the town portion, Collierville accepts payments online, by mail, and in person at Town Hall, 500 Poplar View Parkway.1Town of Collierville. Taxes Credit card payments usually carry a 2 to 3 percent convenience fee, which is real money on a four-figure bill; electronic checks from a bank account typically don’t. The Shelby County Trustee takes online payments through its payit901 platform along with mail and in-person options. Include your parcel identification number on either payment so it gets credited to the right account.
What Happens If You Pay Late
Interest starts accruing on March 1 at 1.5 percent of the balance, and another 1.5 percent is added the first day of each following month. Delinquent municipal taxes carry the same monthly rate.5Justia. Tennessee Code 67-5-2010 – Interest – Delinquent Taxes That comes out to 18 percent per year, and it compounds fast.
If the balance sits unpaid long enough, the county can file a delinquent tax suit and eventually sell the property at public tax sale. Sale proceeds cover attorney fees and court costs first, then the taxes owed to the state, county, and municipality. Owners keep a right of redemption to stop the process by paying the full amount of taxes, interest, penalties, and costs. Better to pay by February or route the taxes through an escrow account than to count on redemption.
Appealing an Assessment You Think Is Too High
If the appraised value on your notice looks too high, you can challenge it. Appeals go first to the Shelby County Board of Equalization, which accepts filings from May 1 through June 30 in most years.6Shelby County Assessor of Property. What If Property Owners Do Not Agree With Their Appraised Value Miss that window and the assessment generally becomes final with no further local appeal.
Bring evidence that supports a lower number: recent comparable sales in your neighborhood, photos and documentation of condition problems, or a professional appraisal, which typically runs $300 to $1,200 for a residential property. The board can adjust the appraised value, the property classification, or both.
If the local board rules against you, the next step is the Tennessee State Board of Equalization. File before August 1 of the tax year, or within 45 days after the local board mailed its decision, whichever is later. You still have to pay the taxes you owe, or at least the undisputed portion, before the delinquency date to keep the appeal alive.
Relief Programs for Eligible Homeowners
Tennessee reimburses qualifying homeowners for part or all of the property taxes on their primary residence. Three groups qualify:7Tennessee Comptroller of the Treasury. Property Tax Relief
- Homeowners age 65 or older by the end of the tax year, if total household income falls below a ceiling that adjusts each year with the Social Security cost-of-living adjustment.
- Totally and permanently disabled homeowners, subject to the same income ceiling.
- Disabled veterans and their surviving spouses, with relief on the first $175,000 of the home’s full market value and no income limit.8State of Tennessee. Property Tax Relief for Disabled Veterans
For the elderly and disabled programs, reimbursement is limited to taxes on a set portion of market value. For tax year 2026 that cap is $32,700 of market value, which translates to relief on roughly $8,175 of assessed value at the 25 percent residential ratio. Applications are available through the Shelby County Trustee’s office or Collierville’s collecting official. Apply early in the tax year so the credit is in place before the February deadline, and bring proof of age or disability, income documentation, and evidence the property is your primary residence.
Escrow and Federal Deductions
Most homeowners with a mortgage never pay Collierville or Shelby County directly. The servicer collects a share of the estimated annual bill each month, holds it in escrow, and pays both tax offices on your behalf. Federal rules cap the cushion your servicer can hold at one-sixth of the total estimated annual escrow disbursements, roughly two months of payments,9eCFR. 12 CFR 1024.17 – Escrow Accounts and the servicer has to send you an annual escrow analysis statement within 30 days of the end of each computation year.10Consumer Financial Protection Bureau. Section 1024.17 Escrow Accounts Read it. A reappraisal that raised your value will show up here as a bigger monthly payment, and if the account runs short, the servicer will either spread the shortage over 12 months or let you pay it in a lump sum.
If you itemize on your federal return, the property taxes you pay to Collierville and Shelby County count toward the state and local tax deduction. For 2026 the SALT cap sits at $40,400 for most filers and $20,200 for married filing separately, with a phase-down starting once modified adjusted gross income exceeds $505,000. Mortgage interest is separately deductible on up to $750,000 of acquisition debt for loans taken out after December 15, 2017, or up to $1 million for older loans.11Library of Congress. Reforms to the Mortgage Interest Deduction with Revenue Estimates If your property taxes plus state and local income taxes are already approaching the SALT cap, run the numbers with a tax professional before deciding whether to itemize.