Tennessee Auto Sales Tax Calculator

By Mohamed SkhiriUpdated November 7, 2026

How much is Tennessee auto sales tax?

Tennessee has one of the highest combined sales tax rates in the country for everyday purchases, but car buyers get a break: the local part applies to only a small slice of the price. That's why Tennessee car tax is really a 7% tax with a small, nearly fixed amount added. It isn't the 9.25% or 9.75% you pay at the store.

How to calculate sales tax on a car in Tennessee

1. Find the taxable price: the vehicle price minus any trade-in on the same deal.
2. State tax: taxable price × 7%.
3. Local tax: the first $1,600 × your local rate. At 2.25% that's $36. At 2.75% it's $44.
4. Single article tax: the amount between $1,600 and $3,200 × 2.75%. That's $44 on any taxable price of $3,200 or more.
5. Add the three together.

Car taxes in TN by price

Because the local and single article taxes stop growing at $3,200, the 7% state rate does almost all the work on any normal car. That makes a Tennessee automobile sales tax calculator simple to check by hand. Here's the total sales tax on cars in Tennessee at five prices, with no trade-in and the common 2.25% local rate. At the 2.75% maximum local rate, add $8 to each total.

So the Tennessee automobile sales tax on a typical car works out to about 7.2% to 8.6% of the price, not the 9.75% you'd get by adding the state and top local rates together. A trade-in lowers the 7% part, which is where the real savings are.

Local option tax by county

Each Tennessee county, and some cities, sets a local option sales tax rate, capped at 2.75%. Many counties sit at 2.25% or 2.5%, and a number use the full 2.75%. Because it only applies to the first $1,600, the gap between the lowest and highest local rate is about $20 on any car. If you don't know your rate, choosing 2.75% in the calculator gives you the most you could owe.

The rate that applies is the one where you live and register the car, which may not be the dealer's county.

What is the single article tax?

Tennessee adds a state "single article" tax to the sale of one expensive item, such as a car, boat or appliance. The rate is 2.75%, and it applies only to the second $1,600 of the price, so it can never be more than $44. It replaces the local tax on that part of the price, which keeps Tennessee's tax on large purchases from growing with the local rate.

Tennessee used car sales tax

Used cars are taxed the same as new ones in Tennessee. There's no lower rate or price bracket. That includes private sales: when you buy from a private seller, there's no dealer to collect the tax, so the county clerk collects it when you title the car. Bring the signed title and a bill of sale showing the price. The clerk may question a price that looks far below the car's value.

Trade-ins, rebates and dealer fees

A trade-in reduces the taxable price when it's part of the same purchase. Selling your old car privately and buying separately doesn't give you the trade-in credit. Dealer documentation and service fees are generally part of the taxable price in Tennessee, so expect tax on the doc fee too. Manufacturer rebates usually don't reduce the taxable price, because the dealer still receives the full price.

Out-of-state purchases, new residents and family transfers

• Bought out of state: Tennessee residents owe Tennessee tax when they register the car here. If you paid sales tax to another state, bring proof; the clerk can credit it against what you owe.
• Moving to Tennessee: new residents bringing a car they already owned and registered in another state generally don't pay Tennessee sales tax on it, only title and registration fees.
• Gifts and family transfers: a car given between close family members can be exempt from sales tax with the right affidavit. Ask your county clerk which relationships qualify before you transfer the title.

Title, registration and wheel tax

The sales tax isn't the whole bill at the clerk's office. You'll also pay a title fee and a registration fee. Many counties add a wheel tax each year when you register or renew, and the amount depends on the county. In Knox County, for example, the clerk's office says titling and registering most vehicles costs about $77, before sales tax. Check your county clerk's website for its exact fees and wheel tax.

Wheel tax in TN ranges from nothing in many counties to $100 in Lake County in 2026. Our TN vehicle registration fee calculator has the wheel tax for all 95 counties, plus the $26.50 plate fee and the EV and hybrid fees. So the full set of taxes on cars in Tennessee is the sales tax here, plus the title and the yearly registration and wheel tax there.

Frequently asked questions