Taxes & Insurance in Tullahoma
Tullahoma carries the highest combined property tax rate in Coffee County, alongside Tennessee's standard no-income-tax/high-sales-tax structure, and a Tullahoma-specific homeowners insurance premium was not found this session.
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Learn moreThe highest combined property tax rate in Coffee County
The City of Tullahoma layers a $2.5819 city rate on top of Coffee County's $2.4305 rate, combining to $5.0124 per $100 of assessed value -- the highest combined rate and highest effective tax rate (0.98%) within Coffee County, with the highest median annual tax bill in the county at $1,258 (Ownwell, retrieved 2026-08-22). This is a real, disclosed, granular city+county breakdown rather than a single simplified county-wide figure.
No state income tax, standard Tennessee sales tax structure
Coffee County's minimum combined 2026 sales tax rate is 9.75% (7.00% Tennessee state + 2.75% county local option), consistent with the near-highest-in-the-nation combined sales tax pattern documented statewide in the tennessee.js base record.
A homeowners insurance gap, disclosed rather than filled with a guess
A Tullahoma-specific homeowners insurance premium was not found this session. Tennessee's statewide average runs $2,958-$3,757/year depending on source and coverage level (LendingTree, MoneyGeek, Insure.com, 7th-highest in the nation per LendingTree's June 2026 report); Middle Tennessee's dominant weather-driven cost factor is the severe-thunderstorm/tornado corridor described in the climate topic below, not hurricane or earthquake risk.
Key takeaways
- Tullahoma's combined city+county property tax rate ($5.0124/$100) is the highest in Coffee County, with a $1,258 median annual tax bill.
- No Tennessee state income tax; Coffee County's combined sales tax is 9.75% (7.00% state + 2.75% county), part of Tennessee's well-documented near-highest-in-the-nation sales tax burden.
- A Tullahoma-specific homeowners insurance premium was not found this session -- a disclosed gap; Tennessee's statewide average runs $2,958-$3,757/year depending on source.
- Middle Tennessee's severe-thunderstorm/tornado corridor, not hurricane or major earthquake risk, is the dominant weather-driven insurance cost factor here.
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