A Tennessee bill of sale is a signed document that records the private transfer of a vehicle, boat, or other personal property between a buyer and seller. It identifies both parties, states the purchase price, describes the property, and gives the county clerk the information needed to title the item, register it, and calculate sales tax. Tennessee does not require one for every private transaction, but you will almost always need one to complete the paperwork at the clerk’s window, and both sides should keep a signed copy.
When You Need One
The most common reason is practical: you bought or sold a vehicle or boat privately, and the county clerk needs a written record of the price to calculate sales tax. A few situations make the document legally necessary rather than just useful.
If a lienholder is holding the certificate of title, the seller cannot sign the reassignment section on the back of the title at the time of sale. Tennessee allows the seller to execute a separate bill of sale in that situation, and it must include the name and address of the lienholder holding the title. This is different from a title whose reassignment spaces are simply full — for that, the seller uses a Title Extension Form instead of a bill of sale.1Tennessee Department of Revenue. Transfer of Ownership
Boat and watercraft transfers also require one. The Tennessee Wildlife Resources Agency lists a completed bill of sale among the documents the county clerk needs to process a watercraft registration.2Tennessee Wildlife Resources Agency. Boating in Tennessee
What to Include
Tennessee does not mandate a single official form for private vehicle sales. The county clerk’s office offers a basic template, but any written document works as long as it contains the right details. A complete Tennessee bill of sale should show:
- Full legal names and addresses of the buyer and seller
- The date of the sale
- The purchase price — the exact dollar amount paid, including any trade-in credit
- A vehicle description covering year, make, and model
- The Vehicle Identification Number (VIN), all 17 characters, copied from the dashboard plate or the door jamb sticker
- Signatures of both buyer and seller
Check the VIN against the physical vehicle before anyone signs. One transposed digit will get the paperwork rejected at the clerk’s window. The purchase price matters just as much, because it drives the sales tax calculation and, if it looks too low, triggers a separate affidavit.
For a boat, swap the VIN for the Hull Identification Number (HIN) and include the vessel’s length and type.2Tennessee Wildlife Resources Agency. Boating in Tennessee
The Odometer Disclosure Is a Separate Form
Tennessee Department of Revenue Form RV-F1317001 is sometimes confused with the bill of sale. It isn’t one. It’s the Odometer Disclosure Statement, a separate federally required document that captures the vehicle’s mileage at the time of transfer.3Tennessee Department of Revenue. Odometer Disclosure Statement Both seller and buyer sign it.
The requirement currently applies to any vehicle with a model year of 2011 or newer. The seller checks a box indicating whether the odometer reading is accurate, whether it exceeds the mechanical limits of the odometer, or whether the actual mileage is unknown. Model year 2010 and older vehicles are exempt for now. The next shift happens in 2031, when model year 2011 vehicles first become exempt.4eCFR. 49 CFR Part 580 – Odometer Disclosure Requirements
Bring both the bill of sale and the odometer disclosure to the county clerk. One records the transaction; the other records the mileage.
Why the Price on the Form Matters
Tennessee charges 7% state sales tax on the full purchase price of a private vehicle sale.5Tennessee Department of Revenue. VTR-34 – Sales Tax on a Vehicle Purchase A 2.75% single-article tax then applies to the portion of the price between $1,600 and $3,200, capped at $44. Local tax applies to the first $1,600 only, at a rate that varies by county.6Tennessee Department of Revenue. SUT-6 – Single Article Tax – Overview and Application
The clerk runs all of that against the purchase price you wrote on the bill of sale. Reporting the amount accurately is the whole reason the document exists at the tax window.
Family Transfers and Gifts
Transfers to certain relatives are exempt from Tennessee sales and use tax entirely. Qualifying relatives include spouses, siblings, parents, children, grandparents, grandchildren, great-grandparents, and great-grandchildren. Spouses of your children, grandchildren, and great-grandchildren also qualify.7Tennessee Department of Revenue. GI-13 – Car Sales to Relatives are Not Subject to Sales Tax
To claim the exemption, complete the Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats (Form F1301201) and state the relationship. Gifting to someone outside the list — a friend, a cousin, an unmarried partner — is not exempt. Tennessee treats gifts to non-exempt recipients as taxable transfers, though the sales price can be recorded as $0 if no money changed hands.8Tennessee Department of Revenue. Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats
When Notarization Is Required
Most Tennessee vehicle bills of sale do not need to be notarized. One situation changes that. If you sell a vehicle at 75% or less of its fair market value to someone who isn’t a tax-exempt relative, the state requires a notarized Affidavit of Non-Dealer Transfers. Fair market value comes from the most recent NADA Official Used Car Guide, Southeast Edition.8Tennessee Department of Revenue. Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats
The same notarized affidavit applies to gift transfers to non-exempt recipients. The form asks the seller to explain why the price is below market — vehicle damage, high mileage, mechanical problems are common reasons. It’s signed under penalty of perjury, and misrepresenting the sale price to reduce the tax can result in the state assessing the full tax plus penalties and interest against the buyer.8Tennessee Department of Revenue. Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats
Even when notarization isn’t legally required, having a notary witness the signatures adds protection against later claims of forgery or dispute. On a higher-value vehicle, that’s cheap insurance.
Taking It to the County Clerk
After the sale, the buyer applies for a new Tennessee title and registration at their local county clerk’s office. Bring:
- The signed-over certificate of title from the previous owner, or a bill of sale if the lienholder held the title
- The completed bill of sale showing the purchase price
- The odometer disclosure statement (Form RV-F1317001) if the vehicle is model year 2011 or newer
- The Affidavit of Non-Dealer Transfers (Form F1301201) if the sale involves a low price, a gift, or a family exemption
- Valid photo identification
- Proof of insurance
Beyond sales tax, expect several flat fees. Standard passenger plate registration is $26.50.9Tennessee Department of Revenue. VR-4 – Registration Fees The title fee is $13, with an additional $11 per lien if the vehicle is financed. Many counties and municipalities also levy a wheel tax that varies widely. Shelby County, for example, charges a $50 wheel tax for privately owned vehicles plus a separate city fee ranging from $25 to $35 depending on the municipality.10Shelby County, TN. Privately Owned Vehicles Call your county clerk before you go so the total doesn’t catch you off guard.
The county clerk retains the original bill of sale as part of the vehicle’s permanent record.
Boats and Watercraft
Boat transfers follow the same general pattern with a few adjustments. The Tennessee Wildlife Resources Agency requires a bill of sale that shows the date of sale, the price, a full description of the vessel including year, make, model, and HIN, and the names, addresses, phone numbers, and signatures of both parties.2Tennessee Wildlife Resources Agency. Boating in Tennessee A dedicated boat template is available through the county clerk’s office.11Tennessee County Clerk. Boat Bill of Sale
One boundary worth knowing: vessels documented with the U.S. Coast Guard need a federal bill of sale (Coast Guard Form CG-1340), not a state form. This applies to vessels currently documented, previously documented, or to be documented under federal law. A bill of sale not filed with the Coast Guard is invalid against anyone except the seller or a person who already knew about the sale.12U.S. Coast Guard. Bill of Sale If you’re buying a larger vessel, confirm whether it carries Coast Guard documentation before relying on a state bill of sale.
What the Document Does and Doesn’t Do
A bill of sale records the transaction. It is not a warranty. Private vehicle sales in Tennessee carry no implied warranty of merchantability, because that Uniform Commercial Code protection applies only to merchants — people who deal in that type of goods professionally. Two individuals selling a used car are not merchants, and the vehicle is effectively sold as-is unless the bill of sale explicitly says otherwise.
Buyers should inspect the vehicle before signing and can include language describing its known condition. Sellers benefit from an “as-is” statement confirming no warranties were made. Neither replaces a pre-purchase mechanic’s inspection, but both reduce the odds of a later argument.
Sellers, keep a signed copy of every document: the bill of sale, the title reassignment, and the odometer disclosure. Note the buyer’s contact information. Until the buyer titles the vehicle in their own name, it remains registered to you, which means parking tickets, toll violations, and even accident liability can find their way back to your address. When possible, go to the county clerk together and confirm the title transfer the same day you hand over the keys.