Tennessee Car Sales Tax Calculator (2026)

• Tennessee buyers pay 7% state sales tax on the full price plus a 2.75% state single article tax on the part of the price from $1,600 to $3,200, a maximum of $44.
• Local sales tax in most Tennessee jurisdictions applies only to the first $1,600 of the vehicle price, at a rate of no more than 2.75%.

State sales tax plus state single article tax

7% up to $1,600.00; 9.75% up to $3,200.00; 7% over $3,200.00 (each rate on its slice of the price)

Local tax

2% to 2.75%, on the first $1,600.00 only

Trade-in

Full credit: reduces the taxable price

Manufacturer rebate

Taxed: tax is figured before the rebate

Figured with Tennessee's rules for a buyer in Nashville-Davidson, at its 2.75% local rate.

• Used car, no trade-in$1,348

  $18,000 price. Taxed on $18,000.

• New car with a trade-in$1,838

  $35,000 price, $10,000 trade-in. Taxed on $25,000. The trade-in saves $700.

• New car with a trade-in and a rebate$2,188

  $45,000 price, $15,000 trade-in, $2,000 rebate. Taxed on $30,000. The trade-in saves $1,050. The rebate does not lower the tax.

These examples treat the agreed price as the taxable price. Where a state uses a book value instead, the tax can differ.

On a $30,000 car, tax runs from $2,180 in Knoxville to $2,188 in Franklin, a difference of $8 among the 7 cities we list. Local tax reaches only the first $1,600 of the price.

Before trade-in, for a buyer living in each city. In some states the rate follows the dealer's location instead; see the rules above and our methodology. Rates from tn.gov, checked Nov 6, 2026.

The calculator covers a car bought from a dealer. These rules apply to other ways of buying or bringing a car to Tennessee.

Buying from a private seller

In a sale between individuals, Tennessee sales tax is due on the amount actually paid to the seller. If the price is below 75% of the car's fair market value in a pricing guide such as NADA, buyer and seller must file an Affidavit of Non-Dealer Transfer; without it or a dealer appraisal, tax is due on 100% of fair market value. (tn.gov, checked Nov 10, 2026)

A car received as a gift

No Tennessee sales or use tax is due on a car received as a gift for which the giver got no consideration of any kind, such as money, a favor, work or forgiven debt. Giver and recipient must jointly complete the Affidavit of Non-dealer Transfer, or use tax is assessed on the car's market value. (tn.gov, checked Nov 10, 2026)

Moving to Tennessee with your car

A person moving to Tennessee in a bona fide change of residence can bring a personal car without paying Tennessee use tax. A Tennessee resident returning after military duty or studies elsewhere does not count as moving in. (tn.gov, checked Nov 10, 2026)

Buying outside Tennessee

A Tennessee resident who buys a car in another state and brings it home owes Tennessee use tax, with credit for any legally imposed sales tax paid to the other state. If the other state's tax was lower, the county clerk collects the difference. (tn.gov, checked Nov 10, 2026)

Active-duty military

Active-duty members of the armed forces stationed on orders in Tennessee (including Fort Campbell, Kentucky), and AGR National Guard and reserve members, can buy a car free of sales tax if it is titled and registered in Tennessee in their name, with a copy of their orders. Guard and reserve members called up to a combat zone qualify until 90 days after release from it. (tn.gov, checked Nov 10, 2026)

Tennessee ranks 50th lowest of all 50 states and the District of Columbia for tax on a $30,000 car, at its lowest local rate. See all states.

Tax on a $30,000 car before trade-in, in nearby states. You generally pay tax based on where you register the car.

• Alabama$600 – $2,250
• North Carolina$900
• Virginia$1,245
• Mississippi$1,500
• Missouri$1,568 – $3,446
• Kentucky$1,800
• Arkansas$1,950 – $2,103
• Georgia$2,100
• Tennessee$2,176 – $2,188

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