Taxes & Insurance in Lebanon
Lebanon's combined property tax rate computes to the lowest effective rate of this three-city batch, layered onto Tennessee's zero state income tax and the same 9.75% combined sales tax found across this Middle Tennessee cluster -- while homeowners insurance carries this batch's widest disclosed range.
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Learn moreThe lowest computed effective property tax rate of this batch
Wilson County's 2026 rate is $1.1631 per $100 of assessed value; the City of Lebanon's own 2026 rate is $0.4050 per $100, for a combined $1.5681 per $100. Applying Tennessee's 25% residential assessment ratio computes to roughly 0.39% of appraised value -- the lowest of this three-city batch (La Vergne ~0.48%). A separate source cited Wilson County's median effective rate at 0.44% with a $1,743 median bill, broadly consistent with this computation, and noted county property values rose 66% at a recent reappraisal with the rate dropping to keep the county budget revenue-neutral.
Zero state income tax, a real structural fact
Tennessee levies no state income tax on wages, retirement income, capital gains, or Social Security -- a 2014 constitutional amendment permanently bars any future wage/salary income tax (see tennessee.js). This applies uniformly to Lebanon, a real advantage specifically relevant to the retirees this market's own retiring topic addresses.
A 9.75% combined sales tax, identical across this three-city batch
Wilson County levies the same 2.75% local-option sales tax on top of the 7% state rate as Rutherford and Dickson counties, for an identical 9.75% combined rate across all three markets in this batch.
Homeowners insurance: this batch's widest, genuinely unreconciled spread
Sources disagreed sharply: a $922/year average (below a $1,311 national average cited by the same source); a separate $1,054/year figure; a $700-$952/year range from a third source; and a considerably higher $1,250-$2,900/year range from a fourth, explicitly citing tornado-coverage considerations. This spread ($700-$2,900) is disclosed as a real range rather than a false-precision single figure -- get a property-specific quote.
Key takeaways
- Lebanon's computed effective property tax rate (~0.39%) is the lowest of this three-city Middle Tennessee batch.
- Tennessee's zero state income tax applies uniformly -- a real, relevant advantage for the retirees this market's retiring topic addresses.
- The 9.75% combined sales tax matches La Vergne and Dickson in this same batch.
- Homeowners insurance carries the widest disclosed spread of this batch ($700-$2,900/year) -- get a property-specific quote, especially given real tornado-coverage considerations.
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