Tennessee Bill Aims to Limit Local Property Tax Increases

Proposed legislation would cap annual hikes at 2% unless voters approve higher rates

Published on Feb. 14, 2026

Got story updates? Submit your updates here. ›

A new bill in the Tennessee legislature, sponsored by Rep. Jason Zachary (R-Knoxville), would limit cities and counties from raising property taxes more than 2% per year over a three-year period, unless a majority of voters approve a larger increase through a referendum. The proposal comes after several municipalities, including Mt. Juliet and Nashville, approved significant property tax hikes in recent years.

Why it matters

Tennessee is one of only four states without a cap on local property tax increases, and the proposed legislation aims to address growing concerns among residents about rising property taxes. However, some local officials argue that the flexibility to adjust property tax rates is necessary to maintain city services and infrastructure in the face of increasing costs.

The details

The bill would allow municipalities to bank unused 2% increases, so that if they did not raise taxes for two years, they could approve a 6% increase in the third year. Rep. Zachary cited 'egregious' property tax increases in cities like Mt. Juliet, which approved a 164% increase last year, and Nashville, which approved a 26% increase, as motivations for the legislation. A poll by the conservative-leaning Beacon Center found that 90% of participants supported a limit on property tax increases.

  • The bill was introduced in the Tennessee legislature in February 2026.
  • Last year, Mt. Juliet approved a 164% property tax increase, and Nashville approved a 26% increase.

The players

Rep. Jason Zachary

The Republican state representative from Knoxville who sponsored the bill to limit local property tax increases.

Freddie O'Connell

The mayor of Nashville, whose office argued that capping property taxes would 'effectively cripple city services' due to increasing infrastructure costs and declining state funding for local education.

Beacon Center

A conservative-leaning think tank that conducted a poll finding 90% of participants supported a limit on property tax increases.

Got photos? Submit your photos here. ›

What they’re saying

“We feel like responding to Tennesseans in this way is something responsible to do, and being one of only four states that does not do that, now is the time to take that action.”

— Rep. Jason Zachary (WKRN)

“Capping property taxes in any way would effectively cripple city services in a time when infrastructure costs have increased dramatically and the state share of local education funding continues to decline.”

— Alex Apple, Press Secretary for the Office of Nashville Mayor Freddie O'Connell (WKRN)

What’s next

The Tennessee legislature will vote on the bill in the coming months, and if passed, it would limit local governments' ability to raise property taxes without voter approval.

The takeaway

This proposed legislation reflects growing concerns among Tennessee residents about rising property taxes, but it also highlights the tension between state-level efforts to limit tax increases and the need for local governments to maintain funding for essential services and infrastructure.