Taxes & Insurance in Farragut
Farragut carries a genuinely uncommon tax structure -- the Town itself levies NO municipal property tax, so residents pay only the Knox County rate -- alongside Tennessee's zero state income tax and a real, high combined sales tax.
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Learn moreNo Town property tax -- a genuinely rare structure
The Town of Farragut levies NO municipal property tax at all; every property tax dollar Farragut residents pay goes to Knox County ($1.5540 per $100 of assessed value for 2026, roughly a 0.81% effective county-only rate). The Town instead funds itself almost entirely through local-option sales tax (~60% of revenue), state sales tax (~16%), and wholesale drink tax (~9%) -- a real, disclosed structural rarity among Tennessee municipalities (Town of Farragut CAFR, retrieved 2026-08-22).
Tennessee's zero state income tax, and Knox County's real sales tax burden
Tennessee has never taxed wages or salaries, and the Hall Tax on interest and dividend income was fully repealed effective January 1, 2021 (see the Tennessee state record). Knox County's combined sales tax runs 9.25% (7.0% state + 2.25% county) -- real and among the higher rates nationally, though lower than Shelby County's 9.75% cited for Collierville and Germantown elsewhere in this same-session batch.
Tennessee's real, statewide homeowners insurance cost picture
Tennessee's statewide average homeowners insurance premium runs anywhere from roughly $2,706 to $4,220 per year depending on source and coverage level, with one source citing Tennessee as having the 7th-highest average home insurance cost in the country at $3,408/year (U.S. News, Insurance.com, NerdWallet, LendingTree, MoneyGeek, ASIG aggregator synthesis, retrieved 2026-08-22) -- a genuinely wide, disclosed spread rather than one settled figure. As an inland East Tennessee market, Farragut's severe-weather exposure (see climate) is real but comparatively lower-frequency than Middle or West Tennessee, a real factor in underwriting relative to the higher-tornado-risk Memphis-metro suburbs covered elsewhere in this same-session batch.
Key takeaways
- The Town of Farragut levies NO municipal property tax -- residents pay only the Knox County rate ($1.5540/$100 for 2026), a genuinely rare structure among Tennessee municipalities.
- Tennessee's zero state income tax applies fully; Knox County's 9.25% combined sales tax is real and high, though lower than Shelby County's 9.75% cited elsewhere in this batch.
- Tennessee's statewide homeowners insurance average carries a genuinely wide, disclosed spread ($2,706-$4,220/year depending on source), with one source citing the 7th-highest average cost nationally.
- Farragut's comparatively lower East Tennessee tornado frequency (vs. Middle/West Tennessee) is a real, relevant underwriting factor -- see climate.
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