Tennessee charges sales and use tax (single article rules) of 7% at the state level, and local jurisdictions add their own, which brings a typical vehicle to about 9.5%. A trade-in does reduce the taxable price, which is real money on the deal.
Worked example ($40,000 car, 2.25% local county): state 7% = $2,800; local 2.25% x $1,600 = $36; state single-article 2.75% x $1,600 = $44; total $2,880.
Local rate is that of the buyer's county of residence (where the vehicle is registered). Per the DOR local rate list most counties are 2.75%; Davidson, Hamilton, Knox and Shelby are 2.25%; a handful are 2.0%-2.5%.
Manufacturer rebates do not reduce the taxable sales price in Tennessee; dealer discounts do.
Title fee: DOR pages list $14 (duplicate title $14); the noting-of-lien fee is $11. County clerk fees are added.
| Fee | Amount |
|---|---|
| Title | $14.00 |
| Registration | ~$27 |
| County wheel tax (annual in counties that impose it (e.g., Davidson, Shelby, Knox); amounts vary widely) | Varies |
Lease tax applies to each monthly payment rather than to the full price of the car, so you pay it as you go.
Pick your city for the exact combined rate where you register, plus what title and registration run there.
Tennessee charges 7% at the state level and local jurisdictions add more, so a typical combined rate on a vehicle is about 9.5% and can reach 9.75% at the high end. The rate is set by where you live, so pick your city above for the exact figure.
Trade-in allowance for a motor vehicle taken in trade reduces the taxable sales price (Tenn. Code 67-6-510).
Title is $14.00. Standard automobile plate $26.50 per year (state) plus county clerk fees and county wheel taxes (up to about $100 in some counties). EVs pay $200 per year (2026), hybrids $100.
No. Tennessee sets no statutory cap, and dealers typically charge around $499. No statutory cap. Typical from CarEdge 2026 (secondary).
Tax applies to each monthly payment rather than the whole price of the car, so the tax is spread across the lease.
Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.