Official fees
Tennessee car sales tax chart
State sales tax
7%
full price, dealer and private sales
Local option tax
2.25%–2.75%
first $1,600 only - max $36 to $44
State single article tax
2.75%
$1,600–$3,200 slice only - max $44
Dealer sale base
price − trade-in
Private sale base
your price (or NADA value if price ≤ 75% of it)
Qualifying family transfer
$0
spouse, parent/child, grandparent/grandchild, great-grandparent/great-grandchild, sibling
Figures verified July 2026 against official sources (listed below). Always confirm the final amount with your county clerk (TN Dept. of Revenue) - counties can add small local fees.
- State rate
- 7%, uncapped
- Local rate
- 2.25%–2.75% on first $1,600
- Single article tax
- 2.75% on $1,600–$3,200
- Family transfer
- $0 tax
- Private sale floor
- 75% of NADA value
Overview
Two Tennessee-specific wrinkles change the base you're taxed on: dealers subtract a like-kind trade-in before applying any of the three layers, and private-party sales priced at 75% or less of the vehicle's NADA book value can get re-based to that book value by the county clerk if the price looks like an attempt to dodge tax. Family transfers - spouse, parent/child, grandparent/grandchild, great-grandparent/great-grandchild, and siblings - skip all three tax layers entirely with the right affidavit.
Same state, other costs
More Tennessee vehicle costs
Common questions
Tennessee car sales tax FAQ
- How much sales tax do I actually pay on a $20,000 car in Tennessee?
- In a 2.25%-local county: $1,400 state tax + $36 local tax + $44 single article tax = $1,480 total, an effective rate of 7.4% - well under the advertised 9.25% combined rate, because the local and single-article layers are capped in dollars, not percent.
- Why did the county clerk tax me on more than what I paid for a used car?
- If you bought private-party and the price you reported is 75% or less of the vehicle's N.A.D.A. Official Used Car Guide value, Tennessee lets the clerk assess tax on the book value instead of your price - it's meant to catch under-the-table price reporting, not genuinely low sale prices, but you may need documentation (condition, mechanical issues) to support a below-book deal.
- Does trading in my old car actually lower the tax?
- Yes, at a dealership. Tennessee computes tax on price minus the trade-in's value, provided the trade-in is a "like kind" vehicle and it's listed by year/make/model on your invoice. Private-party sales have no trade-in mechanism - there's no dealer to accept the old vehicle.
- Who counts as family for the Tennessee gift tax exemption?
- Spouses, parents and children (including step and adopted), grandparents and grandchildren, great-grandparents and great-grandchildren, siblings, and the spouse of anyone on that list. Both parties sign the Affidavit of Non-Dealer Transfer of Motor Vehicles and Boats (Form RV-F1301201) and file it with the county clerk - the transfer then owes no sales tax at all.
- What if I give a car to a friend instead of a relative?
- Tennessee doesn't recognize a 'gift' for tax purposes outside the qualifying family list. A transfer to a friend, cousin, or in-law is taxed like any sale - usually $0 if you report it accurately as a $0-price transfer, but the clerk can still apply the 75%-of-NADA-value rule if the reported price looks understated relative to the car's real worth.
- Is there sales tax on a car I bought out of state and am now titling in Tennessee?
- Tennessee gives credit for sales tax legitimately paid to another state, up to what Tennessee would have charged. If you paid less there than Tennessee's 7%+local+single-article total, you owe the difference when you title the vehicle here.
Receipts
Official sources
Every number on this page comes from these documents - check them yourself.
