To get an agricultural tax exemption in Tennessee, you must own at least 15 acres of land used for farming, meet minimum income requirements, and apply through your county's property assessor's office.
In Tennessee, agricultural property is assessed at 25% of its use value rather than market value, significantly reducing property taxes. The land must be actively farmed and meet specific income thresholds based on acreage size. Applications are due by February 1st each year and require documentation of farming activities and income.
Eligibility Requirements for Tennessee Agricultural Tax Exemption
- Minimum 15 acres of land used for agricultural production
- Minimum gross income of $1,000 from farming activities for 15+ acre parcels
- Minimum gross income of $1,500 from farming activities for parcels under 15 acres
- Land must be used for commercial agricultural purposes
- Must maintain active farming operations
Application Process and Required Documentation
- Obtain application form from county property assessor's office
- Complete Form FA-1: Application for Agricultural, Forest, and/or Open Space Land Classification
- Provide proof of income from farming activities (tax returns, sales receipts)
- Submit documentation showing land use (aerial photos, farm maps)
- Include business license or farm registration if applicable
- Submit application by February 1st deadline
Types of Qualifying Agricultural Activities
| Activity Type | Examples | Minimum Requirements |
|---|---|---|
| Crop Production | Vegetables, grains, fruits, hay | Commercial sales required |
| Livestock | Cattle, poultry, swine, goats | Minimum number of head or production |
| Timber | Tree farming, forest management | Active management plan required |
| Horticulture | Nurseries, greenhouses, orchards | Commercial sales documentation |
Maintaining Your Agricultural Tax Exemption
Once approved, you must maintain active farming operations to keep the exemption. The county may conduct periodic inspections to verify continued agricultural use. If you stop farming or convert the land to non-agricultural use, you must notify the assessor immediately. Failure to maintain agricultural use can result in back taxes plus penalties for up to three previous years.
Special Considerations and Additional Benefits
- Greenbelt law protects against forced subdivision due to tax assessments
- Can combine with other exemptions (senior citizen, disabled veteran)
- Transfers with property sale require new application
- Conservation easements may provide additional tax benefits
- Right-to-farm protections apply to qualifying properties