Taxes in Murfreesboro
Murfreesboro's tax picture combines Tennessee's real, structural no-state-income-tax advantage with one of the highest combined sales tax rates in the country, plus a property-tax rate that this pass was able to resolve to a specific, well-sourced effective figure -- a genuine improvement over the base record's earlier single-source, unresolved number.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreNo state income tax -- a real, structural advantage
Tennessee levies no state personal income tax on wages, a real and significant advantage for movers from income-tax states, and one that applies identically in Murfreesboro as anywhere else in the state.
Combined sales tax sits at the state maximum: 9.75%
Murfreesboro's combined sales tax rate is 9.75% (7.0% state + 2.75% local) -- the maximum local add-on allowed under Tennessee law, shared with a small group of other Tennessee cities including Memphis, Kingsport, Cleveland, and Johnson City. Tennessee's statewide average combined rate (9.61%) is itself the second-highest of any US state, trailing only Louisiana (10.13%), per Tax Foundation's midyear 2026 data.
Property tax: resolved this pass to a specific, sourced effective rate
Rutherford County's newly certified, post-reappraisal 2026 nominal rate is $1.4885 per $100 of assessed value (down from $1.8762 pre-reappraisal), per WGNS Radio's reporting on the county's official certified-rate announcement. The City of Murfreesboro's own certified 2026 rate is $0.7529 per $100 assessed value. Combined: $2.2414/$100 assessed value inside city limits. Tennessee assesses residential property at 25% of appraised (market) value, so the effective rate on appraised value works out to roughly 0.56% -- a real, resolved figure that supersedes the base record's earlier single-source, uncross-checked 0.48% SmartAsset estimate. Final adopted rates can be set at or above the certified figure after public hearings, so confirm the current adopted rate with the Rutherford County Trustee for a specific tax year.
Tennessee taxes only limited investment income, not wages
Tennessee fully repealed its Hall Income Tax (which had applied only to interest and dividend income, not wages) as of January 1, 2021 -- so as of 2026, Tennessee residents, including Murfreesboro residents, pay no state tax on wage income, interest, dividends, or capital gains at the state level.
Key takeaways
- Tennessee has no state income tax on wages -- a real, structural advantage that applies identically in Murfreesboro.
- Murfreesboro's combined sales tax rate is 9.75% -- the maximum local add-on under Tennessee law; Tennessee's statewide average combined rate (9.61%) is the 2nd-highest of any US state (Tax Foundation, 2026).
- Property tax was resolved this pass: Rutherford County's certified 2026 rate ($1.4885/$100 assessed) plus Murfreesboro's own rate ($0.7529/$100 assessed) combine to an effective ~0.56% of appraised value under the state's 25% assessment ratio -- confirm the final adopted rate with the Rutherford County Trustee.
- Tennessee fully repealed its Hall Income Tax (on interest/dividends) as of 2021 -- no state-level tax on wages, interest, dividends, or capital gains as of 2026.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Murfreesboro overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert