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Tennessee car sales tax at a glance
| Tennessee | |
|---|---|
| Tax | sales tax (with single article tax) |
| State rate | 7% |
| Counties and cities add tax | Yes |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Its own rule (see leasing below) |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Tennessee sales tax on a car
Multiply the taxable price by the rate. In Tennessee the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 7% = $1,750 at the state rate, plus any county or city tax where you register the car.
Single article rule: 7% state on the full net price; local option tax (up to 2.75%) only on the first $1,600; plus a 2.75% state single article tax on the portion from $1,600.01 to $3,200 (max $44). So total tax = 7% of price + local% x $1,600 + up to $44. The general combined average (9.61%) does not apply to vehicles.
Trade-ins
The 7% state rate applies to the price after the trade-in allowance (Revenue county clerk guide example: $25,300 price less $10,000 trade-in).
Leasing a car in Tennessee
Tennessee: a motor vehicle lease is taxed as a single article: 7% state tax on the full lease amount, local tax only on the first $1,600 and the 2.75% single article tax on the next $1,600 (Letter Ruling 19-08). The calculator taxes the price at signing, the nearest fit; check the lease contract. The lease calculator uses Tennessee's method when you pick the state.
Dealer doc fees
No cap found.