Tennessee Car Sales Tax Calculator
Tennessee charges a state vehicle sales/use tax of 7% on a car purchase. On a $20,000 vehicle that is about $1,400.00 in state tax before any local add-ons. Enter your own price below — and your trade-in, if Tennessee allows a trade-in credit — to estimate what you'll owe.
Quick answer: Tennessee’s state vehicle sales/use tax rate is 7%. Local (county/city) taxes may apply on top.
Estimate your Tennessee car sales tax
Enter the vehicle price. If Tennessee gives a trade-in tax credit, add your trade-in value to reduce the taxable amount.
State rate only. Many Tennessee counties and cities add a local sales tax on top, so your actual total may be higher. Trade-in credit rules vary — confirm eligibility with the official source below.
How Tennessee taxes a car purchase
| State vehicle sales/use tax rate | 7% |
| Taxable amount | Price − trade-in credit (where allowed) |
| Local / county tax | Varies by jurisdiction — added on top of the state rate |
Tennessee state sales tax is 7% on vehicles. Counties and cities add a local-option rate (capped at 2.75% on the first $1,600 of the sale price for single-article items, with a $44 statewide local-tax cap). A separate state single-article tax of 2.75% applies on the portion of the price between $1,600 and $3,200. Title and registration fees are administered through the county clerk system.
What this estimate excludes
- Local and district taxes. County, city, and transit taxes are added on top of the Tennessee state rate.
- Title, registration, and plate fees. These are separate from sales tax — use the Tennessee registration and title-transfer calculators for those.
- Dealer documentation fees. A dealer “doc fee” is charged on top and is often itself taxable.
- Exemptions. Gifts, inheritance, and certain family transfers may be exempt — confirm with Tennessee Department of Revenue — Title and Registration Services.
Official Tennessee source
↗Tennessee Department of Revenue — Title and Registration Serviceswww.tn.govRelated Tennessee tools & guides
Frequently asked questions
How much is sales tax on a car in Tennessee?
The Tennessee state vehicle sales/use tax rate is 7%. Multiply it by the taxable purchase price (usually the price minus any trade-in credit). Counties and cities may add a local sales tax on top, so confirm your combined rate with Tennessee Department of Revenue — Title and Registration Services.
Do I pay sales tax when buying a used car from a private seller in Tennessee?
In most states, sales or use tax on a private-party vehicle purchase is collected when you title and register the car, not at the point of sale. The rate is generally the same as a dealer sale. Confirm the private-sale rules with Tennessee Department of Revenue — Title and Registration Services.
Does Tennessee give a sales tax credit for a trade-in?
Most states tax only the difference between the vehicle price and your trade-in value, which lowers the tax you owe. A handful of states tax the full price with no trade-in credit. Verify Tennessee's treatment before you rely on the estimate above.
Are there local or county car sales taxes in Tennessee?
Often, yes. The rate shown here is the Tennessee state rate only; many counties, cities, and transit districts add a local sales tax on vehicle purchases, so your combined rate can be higher. Tennessee Department of Revenue — Title and Registration Services publishes the official combined rates.
Last reviewed: 2026-01-01 · Reviewed by the Car Paperwork editorial team · Based on official Tennessee Department of Revenue — Title and Registration Services sources · Independent resource · Not legal advice