Tennessee Certificate of Title: Transfers, Liens, and Replacements

A Tennessee certificate of title is the legal document proving you own a vehicle, and every titling action — new purchase, private sale, gift, inheritance, lost title, lien release — runs through your local county clerk’s office. The title fee is $14, and most transactions also involve sales tax, an odometer reading, and a short list of supporting documents that varies by situation.¹²

Titling a New, Used, or Out-of-State Vehicle

What you bring to the clerk depends on where the vehicle came from.¹

New vehicle: the Manufacturer’s Statement of Origin (also called the Manufacturer’s Certificate of Origin) from the dealer, your ID, and proof of Tennessee residency.
Used vehicle: the existing certificate of title signed over by the seller, your ID, and proof of residency.
Out-of-state vehicle: the valid title from the other state. Tennessee will cancel it and issue a Tennessee title.

Dealership buyers usually have the dealer handle the paperwork. Private buyers go in person. If the department isn’t satisfied that you’re the rightful owner, it can require a surety bond before issuing the title.³

Odometer disclosure is required for any vehicle with a model year of 2011 or newer; vehicles model year 2010 or older are exempt under an older 10-year rule.⁴

Sales Tax at the Counter

Private sales are taxed the same as dealer sales. The state rate is 7%.⁵ On top of that, a state single-article tax of 2.75% applies to the portion of the price between $1,600 and $3,200, capped at $44.⁶ Your county may add its own local sales tax on the first $1,600 and a separate wheel tax.

Tax is normally calculated on what you actually paid. The wrinkle: if your purchase price is less than 75% of the vehicle’s fair market value from a pricing guide such as the NADA Used Car Guide, both buyer and seller must complete the Affidavit of Non-Dealer Transfers (Form RV-F1301201) to document the sale. Skip the affidavit and the clerk charges tax on 100% of fair market value rather than your actual price.⁷ Private buyers get caught by this often.

Transferring a Title to a Buyer

The seller signs the assignment section on the back of the title, discloses all liens, and hands the signed title to the buyer at the time of sale. If the title is held by a lienholder, the seller can instead give the buyer a separate notarized bill of sale showing the lienholder’s name and address. A lost title has to be replaced before it can be transferred.⁸

The buyer then takes the signed title to the county clerk, completes the title application, shows ID, and pays the $14 title fee plus any sales tax. Vehicles model year 2011 or newer need an odometer reading on the transfer document.⁴ Don’t delay: unpaid sales tax picks up a 5% penalty per month, up to 25%, plus interest at 11.50%.⁹

Joint Ownership and the “And” vs. “Or” Question

When a vehicle is titled in two or more names, all joint owners must sign to transfer it. The one exception is when the title lists two spouses connected by “or” rather than “and”; either spouse can sign alone.⁸ That one word matters after a divorce or a death. If you’re adding a co-owner, think about which one you want before the clerk prints the title.

Gifts, Family Transfers, and Inherited Vehicles

Transfers between certain family members are exempt from sales tax: spouses, siblings, parents and children, grandparents and grandchildren, great-grandparents and great-grandchildren, and the spouses of those lineal relatives. To claim the exemption, both parties complete the Affidavit of Non-Dealer Transfers (Form RV-F1301201) and present it at the county clerk’s office.¹⁰ A true gift with no money changing hands is also exempt regardless of the relationship.⁷

Inherited vehicles follow one of two paths. With a probated will or a court-appointed administrator, that person signs the title on behalf of the estate and presents a copy of the will or certified letters testamentary. Without a will, all heirs complete an affidavit of inheritance and provide a copy of the death certificate. The $14 title fee still applies.¹¹

Liens on the Title

When you finance a vehicle, the lender’s name and address are recorded on the title. Recording a lien costs $11 and is filed on the Multi-Purpose Application (Form RV-F1315201) at the county clerk’s office.²

Once the loan is paid, the lender must discharge the lien by submitting a release to the Department of Revenue’s Vehicle Services Division. After the release is processed, you can request a clean title from the county clerk. If you refinance, the original lienholder has to release its lien before the new lender’s can be recorded.¹²

If a lender repossesses a vehicle and wants to sell it, the repossessor submits the existing title showing the lien, an affidavit of sale under special conditions, the title application, and proof that sales tax has been paid, all through the county clerk.¹³

Replacing a Lost or Damaged Title

If your title is lost, stolen, or damaged beyond readability, Tennessee requires you to apply for a replacement immediately.¹⁴ You complete the Multi-Purpose Application (Form RV-F1315201) at the county clerk’s office and mark the reason: lost, stolen, mutilated, altered, or illegible. Bring in the damaged title if you still have it. Once the replacement is issued, the original is automatically voided, which protects you if the old copy resurfaces.

A police report isn’t required for a stolen title, but filing one creates a paper trail if someone tries a fraudulent transfer. The replacement costs the standard title fee.

Correcting a Title or Changing Your Name

Errors on a title such as a misspelled name, a wrong VIN digit, or an incorrect vehicle description are fixed at the county clerk’s office with supporting documents like a bill of sale or the manufacturer’s statement. If the clerk made the mistake, the correction is free. If the error came from information you provided, you pay the standard title fee for the corrected document.

For a name change from marriage or divorce, bring a copy of the marriage certificate or the final divorce decree showing the new name. The clerk updates the vehicle record.¹⁵

Bonded Titles When You Have No Paperwork

If you bought a vehicle and never received a title, or you turned up an old car with no paperwork at all, Tennessee has a surety bond route. Which process applies depends on age and value.¹⁶

Surety bond required: vehicles less than 30 years old with a fair market value above $3,000. The bond is one and a half times the vehicle’s fair market value.
Certification of Ownership (simpler): vehicles worth $3,000 or less, or vehicles 30 years old or older regardless of value.

For the surety bond route, you need a bill of sale from the last registered owner or a notarized statement explaining why the vehicle was never titled in the seller’s name. If neither exists, a written appraisal from a licensed dealer or a valuation from KBB or NADA Guides will do. The bond can be backed by a corporate surety company or by two personal sureties who own land in Tennessee and live at addresses separate from each other and from you. Tennessee only writes surety bonds for state residents, and the bond stays on file for three years.

You submit the surety bond application to the Department of Revenue by email. After approval, you receive a letter that you take to the county clerk to complete the title application and pay the standard fees. Without the approval letter, the clerk cannot process the title.

Salvage and Rebuilt Titles

A vehicle declared a total loss, meaning damage exceeds 75% of its retail value, can receive a salvage certificate if it is less than 10 years old. The Application for Salvage or Non-Repairable Certificate goes to the Department of Revenue’s Vehicle Services Division along with the outstanding title.¹⁷

If you rebuild a salvage vehicle and want it back on the road, you apply for a Motor Vehicle Identification Certification and submit the salvage certificate, parts receipts, and before-and-after photos. The department may require a physical inspection. Converting a salvage certificate to a rebuilt title costs $75 for individuals or $85.50 for dealers. The rebuilt title permanently carries the notation “Rebuilt Vehicle – Anti-Theft Inspection Passed,” and a matching decal is placed on the driver’s door jamb. That brand follows the vehicle for the rest of its life and affects resale, which is worth weighing before you commit to the rebuild.

Late Penalties and Interest

If you owe sales tax on a vehicle purchase and don’t pay when you title it, the state adds a penalty of 5% of the unpaid amount per month, up to 25%. Interest accrues at 11.50% annually through at least June 30, 2026. If you enter an installment payment agreement with the Department of Revenue, the interest rate rises to 13.25%.⁹ On a $2,000 tax bill left unpaid for five months, penalties alone add $500 before any interest is calculated.

1
Tennessee Department of Revenue. Titling a Vehicle
2
Knox County Tennessee Government. Tennessee Sales Tax and Other Fees
3
Justia. Tennessee Code 55-3-103 – Application for Certificate of Title
4
Tennessee Department of Revenue. VT-4 – Odometer Disclosure and Exemption
5
Tennessee Department of Revenue. VTR-34 – Sales Tax on a Vehicle Purchase
6
Tennessee Department of Revenue. Single Article Special Tax Rates
7
Tennessee Department of Revenue. County Clerk Sales and Use Tax Guide for Automobiles and Boats
8
Justia. Tennessee Code 55-3-118 – Transfer of Title
9
Tennessee Department of Revenue. Penalties and Interest (GEN-16)
10
Tennessee Department of Revenue. Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats
11
Tennessee Department of Revenue. GI-4 – Inherited Vehicle – Title/Registration Process
12
Tennessee Department of Revenue. LIEN-2 – Lien Discharge Requirements
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Tennessee Department of Revenue. Repossessed Vehicles
14
Justia. Tennessee Code 55-3-115 – Lost or Damaged Certificate of Title
15
Tennessee Department of Revenue. GI-1 – Change in Name Due to Marriage/Divorce
16
Tennessee Department of Revenue. VT-12 – The Surety Bond Process
17
Tennessee Department of Revenue. Salvage Certificates and Rebuilt Vehicles