Tennessee car sales tax and fees

Tennessee charges 7% state sales tax on a vehicle purchase. County, city and district tax adds between 2% and 2.75% depending on where you live (2.75% is typical).

State vehicle tax
7%
Local tax
Up to 2.75%

How Tennessee taxes a car purchase

  • State rate: 7% of the price.
  • County, city and district tax adds between 2% and 2.75% depending on where you live (2.75% is typical).
  • Local tax only applies to the first $1,600 of the price.

We have not researched Tennessee's title, registration and dealer fee rules yet, so they are not in the example. Expect a few hundred dollars more.

Drafted from the state's tax table. Not every figure has been checked by hand yet, so confirm with the dealer or the DMV before you sign.

Worked example

Out-the-door

Estimate

A $40,000 gas car (destination included, 3,500 lb) bought in Nashville, ZIP 37013, no trade-in

Vehicle price$40,000.00
Sales tax (7% state + 2.25% local)$2,836.00

Effective rate 7.09% after this state's cap or bracket — tax is charged on $40,000.

Total$42,836.00

What this estimate rests on

3 items are missing or approximate, so the real figure will differ.

  • Not included

    No fee rules on file for TN. Title, plate, registration and the trade-in tax treatment are all unknown.

  • Not included

    No documentation fee was entered and none is on file for this state. Dealers charge one on essentially every sale, so the total is understated.

  • Not included

    No registration rule for this state; registration is omitted from the total.

  • Unchecked

    This rate has not been checked against the taxing authority’s published table.

For a specific car, open it and use Out-the-door price with your ZIP code and the dealer's quote. Browse cars →

Buying in Tennessee

Common questions

What is the sales tax on a car in Tennessee?

Tennessee charges 7% state sales tax on a vehicle purchase. County, city and district tax adds between 2% and 2.75% depending on where you live (2.75% is typical).

What is the out-the-door price of a $40,000 car in Tennessee?

About $42,836 in Nashville, including $2,836 of sales tax. Title and registration fees are extra.

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