What is the sales tx on cars in tennessee

In Tennessee, the sales tax on vehicle purchases includes several components:

🚗 Detailed Breakdown

1. State Sales Tax

• 7% flat rate applied to the net purchase price (after trade‑ins). Wikipedia+10Tennessee Department of Revenue+10Car and Driver+10

1. Single‑Article Tax

• For items over $1,600, there’s an additional 2.25%–2.75% tax capped at a maximum (can add up to around $44). F&I Tools+2Tennessee State Government+2Tennessee Department of Revenue+2Hamilton County Clerk+1Kiplinger+1

1. Local Tax

• Counties add 1.5% to 2.75%, generally based on the first $1,600 of the vehicle’s purchase price, capped at around $36. TN County Clerk+5F&I Tools+5Hamilton County Clerk+5

💡 Quick Illustration

For a $25,000 car (after trade‑in):

• 7% state tax: $1,750
• Local (e.g. 2.25% on first $1,600): $36
• Single‑article (2.75% on next up to $3,200): ~$44
• Total tax: approx $1,830

Exact amounts depend on county/local rates and price brackets

✅ Bottom Line

• Minimum total tax: ~7%
• Typical total effective rate: 9%–10%, depending on location and vehicle cost
• Note: Other fees like title, registration, documentation, and optional service contract taxes may also apply.