Tennessee Auto Loan & Sales Tax Calculator
Calculate your Tennessee auto loan monthly payment and vehicle sales tax. Tennessee charges 7% on vehicle purchases.
Tennessee Sales Tax Rules
Tennessee charges 7% state sales tax on vehicles. Trade-in credit applies. Local county taxes of up to 2.75% are added on top — combined rates can reach 9.75%.
Source: Tenn. Code § 67-6-202
Frequently Asked Questions
What is the vehicle sales tax rate in Tennessee?
Tennessee charges a 7% state sales tax on vehicle purchases under Tenn. Code § 67-6-202. County taxes of up to 2.75% are added on top — combined rates typically range from 9% to 9.75% depending on the county.
Does Tennessee reduce sales tax for trade-ins?
Yes. Tennessee allows a trade-in credit — the value of your trade-in vehicle reduces the taxable purchase price before the 7% state and applicable county sales taxes are applied.
Does the county I buy in affect my vehicle sales tax in Tennessee?
Yes. Tennessee counties add local taxes of up to 2.75% on top of the 7% state rate. Shelby County (Memphis) and Davidson County (Nashville) both reach 9.75% combined. Always check your specific county's rate.
Related Calculation Tools
Calculate and track other financial and legal metrics for Tennessee:
This tool is for informational and educational reference only and does not constitute financial advice. Calculations are estimates based on the inputs provided and state average data. Actual results will vary. Always consult a licensed financial advisor before making financial decisions.