Buying a vehicle and wondering what tax, tag, and title will cost in Tennessee? The state charges a 7% sales tax on the purchase price, a small single-article tax capped at $44, a local tax also capped at $44, a $14 title fee, and a $26.50 standard registration fee. Add a county wheel tax if your county has one. On a $25,000 car in a mid-range county, the all-in cost usually falls between $1,850 and $1,950.
What You’ll Pay on the Purchase Price
Tennessee’s state sales tax is 7%, and it applies to the entire price of the vehicle whether you buy from a dealer or a private seller.1Justia. Tennessee Code 67-6-202 – Property Sold at Retail A $30,000 truck means $2,100 in state tax.
Two smaller taxes sit on top of the 7%, and both are capped. The state single-article tax of 2.75% applies only to the slice of the price between $1,600 and $3,200, so the most anyone pays is $44.1Justia. Tennessee Code 67-6-202 – Property Sold at Retail The local sales tax, set by your county or city, can run as high as 2.75% but applies only to the first $1,600 of the price.2Justia. Tennessee Code 67-6-702 – Tax Authorized At the maximum rate, that’s another $44 regardless of whether the car costs $5,000 or $60,000.3Tennessee Department of Revenue. Local Sales Tax Most local rates sit between 2.25% and 2.75%, putting the local portion in a $36 to $44 range.
Flat Fees for Title and Plate
The paperwork fees are the same across the state. Expect $14 for the title, paid to the county clerk when the application is processed,4Knox County. Tennessee Sales Tax and Other Fees and $26.50 for a standard passenger-vehicle registration with a regular plate.5Tennessee Department of Revenue. VR-5 – Registration Fees for Hybrid or Electric Vehicles Specialty and personalized plates cost more.
Electric and Hybrid Surcharges
If you’re registering an electric or hybrid vehicle, there’s an annual surcharge on top of the $26.50. All-electric vehicles pay $200 per year through December 31, 2026. Plug-in hybrids and standard hybrids pay $100 per year through December 31, 2027.5Tennessee Department of Revenue. VR-5 – Registration Fees for Hybrid or Electric Vehicles The surcharge offsets gas tax revenue these vehicles don’t generate.
Disabled Veteran Plates
Veterans with a VA-rated total and permanent service-connected disability can get a disabled veteran plate on one vehicle at no cost, with no annual registration fee. A second vehicle still pays the standard $26.50. You’ll need a VA letter confirming the disability rating and its effective date.6My Air Force Benefits. Tennessee Military and Veterans Benefits
County Wheel Tax
The county wheel tax is the biggest variable in your total. State law lets each county charge a privilege tax on motor vehicles, and about half of Tennessee’s 95 counties do. Roughly 40 counties charge nothing. Among those that do, rates run from $10 in Pickett County to $100 in Lake County.7UT County Technical Assistance Service. Wheel Taxes
A few 2026 examples:
- Davidson County (Nashville): $55
- Shelby County (Memphis): $75
- Knox County (Knoxville): $36
- Rutherford County (Murfreesboro): $52.50
- Montgomery County (Clarksville): $74
- Williamson County (Franklin): $25.75
Hamilton (Chattanooga), Blount, Sevier, and Sullivan counties currently charge no wheel tax.7UT County Technical Assistance Service. Wheel Taxes The wheel tax is due at initial registration and again at every annual renewal, so it’s recurring. If you’ve moved from another Tennessee county and owe back wheel taxes from a prior year, the clerk will collect those before issuing your new registration.
Ways to Lower the Bill
Trade-In Credit
Trading in a vehicle at a dealership shrinks the taxable amount. Tennessee calculates sales tax on the net difference between the new vehicle’s price and the credit the dealer gives for your trade.8Tennessee Department of Revenue. County Clerk Sales and Use Tax Guide for Automobile and Boats An $8,000 trade against a $28,000 purchase leaves you owing sales tax on $20,000, not $28,000.
The paperwork matters. The dealer has to list the trade-in by model and serial number on the invoice and show the credit at the time of sale. If the dealer cuts you a separate check for your old car and you pay full sticker on the new one, the trade-in deduction is gone.8Tennessee Department of Revenue. County Clerk Sales and Use Tax Guide for Automobile and Boats Make sure “trade-in” appears on the invoice. The credit only works for dealer transactions, not private-party sales.
Family Transfers
Vehicle transfers between close family members are exempt from sales tax. Qualifying relationships include spouses, siblings, parents, grandparents, children, grandchildren, and the spouses of children and grandchildren.9Tennessee Department of Revenue. Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats To claim it, both parties complete an Affidavit of Non-Dealer Transfers (Form RV-F1301201), listing the vehicle’s year, make, VIN, fair market value, any liens, and the family relationship, then sign under penalty of perjury. The title and registration fees still apply, but skipping the 7% state tax on a $20,000 car saves $1,400.
A Sample Calculation
Here’s a $25,000 vehicle registered in Davidson County (Nashville) with no trade-in:
- State sales tax (7%): $1,750
- Single-article tax (2.75% × $1,600): $44
- Local sales tax (2.75% × $1,600): $44
- Title fee: $14
- Registration fee: $26.50
- Davidson County wheel tax: $55
- Total: $1,933.50
Add a $10,000 trade-in and the state tax drops to $1,050 (7% of $15,000), cutting the total to roughly $1,233.50. The single-article and local taxes don’t change, because they’re calculated on the original price brackets, but the trade-in saves $700 in state tax alone.
The same $25,000 purchase for a Hamilton County (Chattanooga) resident, which charges no wheel tax, would run about $1,878.50.
What to Bring and Where to Go
Register at the county clerk’s office in the county where you live. You can’t shop clerks for a lower wheel tax by going to a neighboring county. Bring:
- Proof of ownership: a Manufacturer’s Statement of Origin from the dealer for a new vehicle, or the seller’s signed certificate of title for a used one.
- Bill of sale showing the purchase price. Dealers provide this. For private sales, write one with the date, price, buyer and seller names, and VIN.
- A valid Tennessee driver’s license or state-issued photo ID.
- Proof of liability insurance.
- Odometer disclosure for any vehicle less than 20 years old (model year 2006 or newer at this writing).
If the vehicle is a gift between qualifying family members, bring the completed Form RV-F1301201 to claim the sales tax exemption.9Tennessee Department of Revenue. Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats
Pay the taxes and fees, and you’ll leave the clerk’s office the same day with your license plate and registration decal. The physical title isn’t handed over at the counter. Titles are batched and printed overnight, mailed within 24 to 48 hours, and typically arrive within two weeks.10Tennessee Department of Revenue. VTR-4 – When Title Can Be Expected in the Mail Check your county clerk’s website for office hours and accepted payment methods before you go.