What is the homestead exemption in Tennessee and how do I claim it?

Tennessee provides one of the lowest creditor homesteads in the country but layered senior protections.

1. Two Concepts

Tennessee has (a) the state-funded Property Tax Relief Program administered by counties under Tenn. Code § 67-5-701 and (b) a creditor/bankruptcy homestead under § 26-2-301.

2. Creditor / Bankruptcy Homestead

§ 26-2-301 sets the homestead at $5,000 per individual, $7,500 for joint owners. § 26-2-301(e) raises it to $12,500 for unmarried homeowners 62+, $20,000 for one spouse 62+, and $25,000 if both spouses are 62+. Joint owners with at least one minor child receive $25,000.

3. Automatic vs Declaration

The exemption auto-attaches; no recording is needed.

4. Federal Bankruptcy Cap

Tennessee opted out of federal exemptions (§ 26-2-112). BAPCPA § 522(p)'s $189,050 cap is irrelevant given the low state limit.

5. Property-Tax Homestead

The Property Tax Relief Program reimburses property taxes for low-income elderly (65+) and disabled homeowners on the first $30,900 of market value (2024); disabled veterans (and surviving spouses) receive reimbursement on the first $175,000.

6. Filing Property-Tax Exemption

File with the county trustee by the property-tax deadline (typically April 5 or the local equivalent).

7. Spousal Protections

Tenancy by the entirety auto-protects marital homes from individual-spouse judgments; both spouses must sign to convey.

8. Loss Triggers

Abandonment, sale without reinvestment, or loss of income/age qualifying status for property-tax relief.

9. Foreclosure & Forced Sale Exceptions

Purchase-money deeds of trust, property taxes, mechanic's liens, federal liens, and joint judgments override homestead and entireties protections.

This is legal information, not legal advice.