Chattanooga 2026 Property Tax: How the $1.93 Rate Affects New Homeowners

What changed in Chattanooga, TN

You need to know two facts up front. First, Chattanooga city council approved a city property tax rate of $1.93 for the coming budget cycle, a change voters and homeowners will see on 2026 bills (city announcement). Second, local reporting and budget analysis show that rising property assessments during the 2026 reappraisal mean many homeowners will pay more in total property taxes even though the city rate fell; recent coverage estimates about a $400 average increase for new homeowners (local reporting).

• The $1.93 figure applies to the city portion of your property tax bill, not county or school taxes. See the council announcement for details. (Chattanooga city council passed the budget plan with the $1.93 compromise rate.)
• Hamilton County is pursuing separate tax-rate decisions; its rate environment and comparisons matter when you add up total taxes across jurisdictions.

How property tax math works...

You pay property tax based on an assessed value times the tax rate. The common calculation works like this:

• The county assessor determines an assessed value for your home after reappraisal.
• Tax rates are expressed as dollars per $100 of assessed value. Multiply your assessed value divided by 100 by the tax rate to estimate the tax for that jurisdiction.
• Your total tax bill equals the sum of city, county, school, and any special district levies.

Example (illustrative only): If your assessed value is $200,000 and the city rate is $1.93, the city portion would be (200,000 / 100) x 1.93 = $3,860. Add county and school taxes to get the full bill. Because assessments have been rising in many parts of Chattanooga, TN, even with a lower city rate some homeowners will pay more overall.

Note: Use your actual assessed value when you calculate your expected bill. The municipal announcement gives the official $1.93 city rate you should apply for city-level calculations.

Why many new homeowners may see higher bills in 2026

You might expect lower rates to equal lower bills, but two dynamics mean that is not always true:

Assessment increases can outpace rate reductions

• If the county reappraisal raises your home’s assessed value, a smaller rate applied to a much larger base can still yield a higher tax. Local reporting around the council vote pointed to assessment increases as a major driver of higher 2026 bills for many homeowners.

Multiple taxing authorities add up

• Your city rate is only one part. Hamilton County, local school districts, and special taxing districts each set their own rates. Even if Chattanooga reduces its portion to $1.93, county or school levies could offset that reduction.

Timing and reappraisal cycles

• You are new to the neighborhood: if you bought near or after a reappraisal effective date, your first full-year bill may reflect newly assessed values you did not face when you purchased.

For context on how local decision makers and media framed this, see the city council budget passage and local coverage of projected homeowner impacts.

Step-by-step: estimate your 2026 bill as a homeowner in Chattanooga, TN

Follow these steps to build a reasonable estimate you can use for budgeting:

1. Find your 2026 assessed value notice from the Hamilton County Assessor or your closing documents if you recently purchased. If you do not have the assessor notice yet, use the sale price as a starting point and note that assessed values do not equal market value in every jurisdiction.
2. Add up applicable tax rates:

• City of Chattanooga: $1.93 (official city council budget action)
• Hamilton County: use the county rate for 2026 as published by the county
• School district and special districts: find those line items on your local tax-rate schedule

1. Apply the formula: (Assessed value / 100) x each rate = tax for that jurisdiction, then sum.
2. Compare to 2025 totals to see the year-over-year change.

If you prefer not to do the math, the county tax office or your mortgage lender can provide an estimate, and many local news outlets summarized typical homeowner impacts after the council vote.

What to watch for in your specific situation

• If you bought at or near market peak, your assessed value could be materially higher than the prior owner’s assessed value. That often means a bigger bill in 2026 even with the $1.93 city rate.
• If your home qualifies for homestead or other exemptions, those can reduce the taxable assessed value. Check with Hamilton County about available exemptions and deadlines.
• Look for the official tax rate breakdown mailed to property owners in late 2025 or early 2026; municipal and county sites post final numbers after the budget and rate approvals.

For perspective on county-level moves and how they can affect your full bill, local reporting noted Hamilton County hitting historically low rates even as reassessments proceed.

Practical budgeting tips if your bill goes up

• Recalculate your monthly housing cost: add the expected annual tax to your mortgage, insurance, and maintenance to see the real monthly outlay.
• If your mortgage escrow does not cover the new tax amount, prepare to pay a supplemental bill or request an escrow adjustment with your lender.
• Contest your assessment if you believe the county overvalued your property. File according to the county deadlines and keep comparable sales ready.
• Consider exemptions: if you qualify for homestead or other relief, apply promptly to reduce taxable value.

If you want an immediate estimate, gather your assessed value and the jurisdictions that apply, then use the city $1.93 rate for the city portion and the county and school rates as published.

What the city and council said

City materials and council communications outline that the $1.93 rate was part of a compromise budget plan approved by the Chattanooga City Council. That action sets the city share for tax calculations. Local reporting emphasized that despite the lower city rate the overall homeowner experience will vary by assessment changes and the cumulative effect of all taxing entities.

Official city budget announcement: City Council passes the Kelly $1.93 compromise budget plan on final reading. Local news coverage provides analysis of homeowner impacts and projections.

Next steps for new homeowners in Chattanooga, TN

• Locate your 2026 assessment notice and apply the steps above to estimate your bill.
• Contact the Hamilton County Assessor for questions about valuation or exemptions.
• Review your mortgage escrow to ensure you are covered for higher tax bills.
• Monitor official city and county websites and local reporting for final rate confirmations and payer instructions.

Sources used in this article include the city council budget announcement and contemporaneous local reporting around the vote and projected homeowner impacts. For county-level context, local media reported on Hamilton County tax-rate trends.

FAQs

How do I calculate the city portion of my property tax with the $1.93 rate?

Multiply your assessed value divided by 100 by 1.93. That gives the city portion of your annual tax bill; add county and school portions to get the total.

Why might my tax bill go up if the city lowered the rate?

If your assessed value increased due to the 2026 reappraisal, a lower rate applied to a higher value can still produce a larger bill. Multiple taxing authorities also add to the total.

Where can I find the official $1.93 rate information?

The Chattanooga city government posted the budget plan and final reading that set the $1.93 city rate; check the city’s official site for the formal documentation.

Can I appeal my assessed value if I think it is too high?

Yes. Contact the Hamilton County Assessor to learn the appeal process and deadlines for the 2026 reappraisal cycle. Prepare comparable sales and documentation to support your case.

Will Hamilton County taxes change how much I pay?

Yes. Your total tax bill includes county and school rates in addition to the city rate, so changes at the county level will affect your final amount.

Call or email our team to get a personalized estimate for your Chattanooga property and to go over exemption and appeal options. We can help you understand how the $1.93 city rate and your 2026 assessment combine into a practical budget for your home.

Sources:

• City Council Passes Kelly 1.93 Compromise Budget Plan on Final Reading (https://chattanooga.gov/stay-informed/latest-news/city-council-passes-kelly-193-compromise-budget-plan-final-reading)
• Chattanooga city council approves mayor's budget plan with change to property tax rate (https://newschannel9.com/newsletter-daily/chattanooga-city-council-approves-mayors-budget-plan-with-change-to-property-tax-rate)
• Hamilton County's new property tax rate is the lowest since 1941 (https://foxchattanooga.com/news/local/hamilton-countys-new-property-tax-rate-is-the-lowest-since-1941)