How much is car sales tax in Tennessee?

Tennessee charges 7% state sales tax on the full vehicle price, plus a local rate (commonly 1.5% to 2.75%) on only the first $1,600, plus a 2.75% state single-article tax on the price between $1,600 and $3,200. Combined, the effective rate falls as the price rises.

What is the Tennessee single-article tax?

The single-article tax is an extra 2.75% state tax that applies only to the portion of a vehicle's price from $1,600 to $3,200. Because it applies to at most $1,600 of value, it adds no more than $44 to any purchase.

Is the local tax capped on cars in Tennessee?

Yes. The local (county and city) portion of sales tax applies only to the first $1,600 of the vehicle price. Above that, no additional local tax is charged, which is why expensive cars have a lower effective rate.

Does a trade-in reduce sales tax in Tennessee?

Yes. Tennessee deducts your trade-in allowance from the price before tax, so you are taxed only on the difference. A $30,000 car with a $10,000 trade-in is taxed on $20,000.

How accurate is this calculator?

It applies Tennessee's official three-part formula and the trade-in rule. Your exact local rate varies by county and city, and the calculator excludes title and registration fees, so confirm the final total at the county clerk.

Tennessee Car Sales Tax Calculator

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Buying a vehicle in Tennessee involves more than a single rate. Tennessee layers a 7% state tax on the full price, a local tax that applies only to the first $1,600, and a separate 2.75% state single-article tax on the slice of price from $1,600 to $3,200. This calculator applies all three parts and the trade-in deduction so you know exactly what you will owe at the county clerk.

How it works

Tennessee computes vehicle sales tax in three parts on the price after trade-in:

State tax. 7% on the full taxable price (price minus trade-in).
Local tax. Your county and city local rate, applied only to the first $1,600 of price. Above $1,600 the local tax stops.
Single-article tax. A 2.75% state tax on the portion of price from $1,600 to $3,200 — at most $1,600 of value, so never more than $44.

In formula form: tax = 7% × taxable + localRate × min(taxable, $1,600) + 2.75% × clamp(taxable − $1,600, 0, $1,600).

Tips and example

For a $30,000 car with no trade-in and a 2.25% local rate: the state tax is $2,100 (7%), the local tax is $36 (2.25% of $1,600), and the single-article tax is $44 (2.75% of $1,600). Total tax is about $2,180, an effective rate near 7.27%.

Because the local and single-article taxes are capped, the effective rate drops as the price rises — a cheap car is closer to the full combined rate, while an expensive one trends toward 7%. Always deduct your trade-in first, since Tennessee taxes only the net price, and confirm your exact local rate, which varies by county and city.