Car sales tax in Tennessee
Tennessee: State sales tax (7% of the full price); plus a local rate of up to 2.75%, on the first $1,600.00 only.
On a $30,000 used car from a dealer with no trade-in, the tax is $2,144.00–$2,188.00 and all taxes and government fees come to about $2,170.50–$2,214.50.
Trade-in: a $10,000 trade-in lowers the tax by $700.00. Private sale ($15,000): tax $1,094.00–$1,138.00.
Estimate of government charges. Your DMV, tax office or county calculates the final amount.
Your own numbers
Set up for: buying from a dealer in Tennessee · Different situation?
Every line on a $30,000 dealer purchase
| Line | Group | Amount | Set by |
|---|---|---|---|
| State sales tax (7% of the full price) | State & local tax | $2,100.00 | Tennessee Department of Revenue |
| State single-article tax (2.75% of the price from $1,600.01 to $3,200) | State & local tax | $44.00 | Tennessee Department of Revenue |
| Local sales tax | State & local tax | $0.00–$44.00 | Tennessee Department of Revenue |
| Title fee (ask your county clerk) | Title | you fill in | Tennessee Department of Revenue |
| Standard passenger plate fee (state) | Registration & plates | $26.50 | Tennessee Department of Revenue |
| County clerk fees, county wheel tax and local privilege tax | Registration & plates | you fill in | Tennessee Department of Revenue |
How Tennessee taxes a car purchase
- Trade-in: Tax is on the price minus the trade-in credit actually shown on the invoice; the trade-in must be of like kind. For a vehicle imported for use in Tennessee, the traded vehicle must have been registered in Tennessee in the importer's name. The deduction can't exceed the price.
- Private sale: Sales between individuals (occasional and isolated sales) are taxable at the county clerk, at the same state + single-article + local rates. Gift, low-selling-price and relative transfers are reported on the Affidavit of Non-Dealer Transfer; an unsupported gift is assessed on market value.
- Bought in another state: If the other state's tax was lower, the buyer pays the difference at registration, plus Tennessee's single-article tax if not already collected. If no tax was collected, Tennessee tax is due at titling. Register immediately if the car will be driven in Tennessee.
- Local tax: Local option sales tax: the county/city rate (at most 2.75%) applies ONLY to the first $1,600 of the price, so it is at most $44. 'cap' here is the BASE cap ($1,600), not a tax-amount cap. The Department's local rate list is on tn.gov, which this server cannot reach, so the user enters the local rate (e.g. Davidson County 2.25% per the official examples).
Exemptions (check the official rule before relying on one)
- Sales to relatives: Married persons, lineal relatives, spouses of lineal relatives and siblings; report on the Affidavit of Non-Dealer Transfer.
- Active-duty military stationed in Tennessee (and qualifying Guard/reserve members): Vehicle must be titled and registered in Tennessee in the member's name (alone or jointly with a spouse or lineal relative).
- VA automobile grant recipients: Exempt from sales tax on the part of the price above the VA grant; also exempt from the registration fee and local privilege tax.
- Nonresident buyer removing the car within three days: Three-Day Affidavit or dealer delivery out of state.
- Divorce transfer between spouses:
Dealer fees
Doc, processing and prep fees are set by the dealer, not the state. No dealer document-fee cap was found in the Department of Revenue sources. Document and prep fees are part of the taxable sales price (state tax applies; no extra local tax above the $1,600 single-article limit).
Official tools: Tennessee Department of Revenue help center: vehicle title and registration (county clerk handles all transactions)
Sources
- Tennessee Department of Revenue: VTR-34 - Sales Tax on a Vehicle Purchase
- Tennessee Department of Revenue: County Clerk Tax Manual (June 2025) (as archived 2025-09-13)
- Tennessee Department of Revenue: VR-4 - Registration Fees
- Tennessee Department of Revenue: VTR-37 - Sales Tax on a Vehicle Purchased out of State
- Tennessee Department of Revenue: GI-13 - Car Sales to Relatives are Not Subject to Sales Tax
- Tennessee Department of Revenue: SUT-84 - Exemption for Vehicles Purchased by United States Service Members
- Tennessee Department of Revenue: VTR-35 - Sales Tax for Military Members
FAQ
How much is the sales tax on a car in Tennessee?
State sales tax (7% of the full price); plus a local rate of up to 2.75%, on the first $1,600.00 only. On a $30,000 used car from a dealer that is $2,144.00–$2,188.00 in tax (estimate).
Does Tennessee charge tax on the price minus the trade-in?
Tax is on the price minus the trade-in credit actually shown on the invoice; the trade-in must be of like kind. For a vehicle imported for use in Tennessee, the traded vehicle must have been registered in Tennessee in the importer's name. The deduction can't exceed the price.
Do you pay sales tax on a private car sale in Tennessee?
Sales between individuals (occasional and isolated sales) are taxable at the county clerk, at the same state + single-article + local rates. Gift, low-selling-price and relative transfers are reported on the Affidavit of Non-Dealer Transfer; an unsupported gift is assessed on market value.
What if I buy a car in another state and register it in Tennessee?
If the other state's tax was lower, the buyer pays the difference at registration, plus Tennessee's single-article tax if not already collected. If no tax was collected, Tennessee tax is due at titling. Register immediately if the car will be driven in Tennessee.
Is there a cap on dealer doc fees in Tennessee?
Doc, processing and prep fees are set by the dealer, not the state. No dealer document-fee cap was found in the Department of Revenue sources. Document and prep fees are part of the taxable sales price (state tax applies; no extra local tax above the $1,600 single-article limit).