Nashville, TN – Tennessee’s property tax relief program, designed to assist seniors, people with disabilities, and veterans, is facing a significant budget shortfall that could impact tens of thousands of beneficiaries. The state’s comptroller recently informed the Senate Finance, Ways, and Means Committee that the program lacks the necessary funding to meet the growing demand, leaving many vulnerable individuals at risk of losing support.
The program, which offers property tax relief to low-income homeowners, primarily targets seniors over the age of 65, individuals with disabilities, and disabled veterans. Seniors and disabled homeowners with an income below $36,370 are eligible for assistance, while disabled veterans and their surviving spouses are eligible regardless of income. However, with a steady rise in the number of eligible individuals, the program is struggling to keep up.
According to the comptroller, the budget for the program has already exceeded the allocated $41 million in the last two years, forcing the office to dip into reserves to cover the gap. For 2025, the state required $47.3 million to fund the program but was only allocated $41.2 million. This shortfall could lead to reduced benefits or proration, affecting over 100,000 individuals who rely on the relief each year.
Senator Bo Watson, chair of the Senate Finance, Ways, and Means Committee, emphasized the severity of the issue, stating, “While you might not see it as a crisis, we see it as a problem that seriously needs to be addressed.” Despite the program’s importance, state leaders have not indicated any plans to increase the funding to meet the escalating demand.
Rob Mitchell, the Rutherford County Property Assessor, has long advocated for increased property tax relief for seniors. He argues that property values and taxes in Tennessee have risen sharply, placing a heavy financial burden on elderly, fixed-income residents who may be forced to leave their homes due to unaffordable taxes. Mitchell is particularly disappointed by the lack of action from state officials, saying, “Tennessee tends to do less than many other states when we are a healthy, vibrant state and could afford to do more.”
If the General Assembly does not take action to address the shortfall, the comptroller’s office may have to make difficult decisions, including reducing the amount of assistance provided to each beneficiary. The program’s reserves will only cover anticipated costs for one more year, and without additional funding, the program will need an extra $10.3 million for 2026 and $19 million by 2027 to remain sustainable.
Senator Jeff Yarbro, a member of the committee, urged his colleagues not to ignore the issue, saying, “We shouldn’t just kick this can down the road to be dealt with by the next governor or future legislators when there is a clear problem staring us in the face.”
With increasing pressure to find a solution, Tennessee’s property tax relief program faces a pivotal moment. The state’s most vulnerable populations—seniors, disabled individuals, and veterans—are depending on this crucial support, and without immediate action, they may see their benefits significantly reduced in the near future.
