Real Tennessee deals, worked out
Each example runs through the same calculator above, line by line, so you can check every number yourself.
1Nashville: new car with a trade-in and rebate
A Davidson County buyer pays $35,000, trades in $10,000 and gets a $3,500 rebate. The rebate doesn't reduce the tax.
| Vehicle price | $35,000.00 |
| Rebate | −$3,500.00 |
| State sales tax (7%) on $25,000.00 | $1,750.00 |
| Local option tax (2.25% on first $1,600) | $36.00 |
| Single article tax (2.75% on $1,600–$3,200) | $44.00 |
| Title fee | $14.00 |
| Registration | $26.50 |
| Out-the-door | $33,370.50 |
| Due after the $10,000 trade-in | $23,370.50 |
2Memphis: used car
A Shelby County buyer pays $18,000 for a used car at a 2.75% local rate.
| Vehicle price | $18,000.00 |
| State sales tax (7%) on $18,000.00 | $1,260.00 |
| Local option tax (2.75% on first $1,600) | $44.00 |
| Single article tax (2.75% on $1,600–$3,200) | $44.00 |
| Title fee | $14.00 |
| Registration | $26.50 |
| Out-the-door | $19,388.50 |
The three pieces of Tennessee car tax
The Department of Revenue's County Clerk manual lays it out. The 7% state rate applies to the whole taxable price. The local option rate, set by your county or city, applies only to the first $1,600. The state single article tax of 2.75% applies to the part between $1,600 and $3,200. Above $3,200 only the 7% applies. Hamblen and Hancock counties use a lower local base.
A trade-in counts if the dealer credits it on the invoice, it's titled to you and it's listed by model and serial number. A manufacturer rebate doesn't: the Department's clerk training treats it as a third-party payment, so the tax is on the price after the trade-in but before the rebate.
Tennessee car tax at common prices
What a new gas car bought from a dealer comes to at four prices, using a 2.25% local rate. The trade-in column shows how much a $10,000 trade-in changes the tax under Tennessee's rules.
| Price | Tax | Tax with $10,000 trade-in | Taxes + fees |
|---|---|---|---|
| $15,000 | $1,130.00 | $430.00 | $1,170.50 |
| $25,000 | $1,830.00 | $1,130.00 | $1,870.50 |
| $35,000 | $2,530.00 | $1,830.00 | $2,570.50 |
| $50,000 | $3,580.00 | $2,880.00 | $3,620.50 |
Title, registration and EV fees
The state title fee is $14, and county clerks may add their own. Standard registration is $26.50. Electric cars pay $200 a year for renewals through 2026, rising to $274 in 2027, and hybrids and plug-in hybrids pay $100.
Tennessee taxes and fees at a glance
Officialfrom a state agency sourceEst.varies or not yet confirmed
| Item (nashville: new car with a trade-in and rebate) | Status | Amount |
|---|---|---|
| State sales tax (7%) | Official | $1,750.00 |
| Local option tax (2.25% on first $1,600) | Estimate | $36.00 |
| Single article tax (2.75% on $1,600–$3,200) | Official | $44.00 |
| Title fee | Official | $14.00 |
| Registration (yearly) | Official | $26.50 |
| Total taxes and fees | $1,870.50 |
Tennessee car tax FAQ
What is the car sales tax in Tennessee?
7% state on the price after a trade-in, plus local tax on the first $1,600 and a 2.75% single article tax on the next $1,600.
Do rebates lower Tennessee car sales tax?
No. A manufacturer rebate is treated as a third-party payment.
How much is the Tennessee EV fee?
$200 a year for renewals through 2026 and $274 in 2027. Hybrids pay $100.
Sources
We build every number from these agency pages. If something has changed, tell us and we'll fix it.