Tennessee car tax
Tennessee has no yearly car tax based on value. Owners pay registration and, in many counties, a flat wheel tax. A car purchase is taxed at 7% state, plus local tax on the first $1,600 and a state single-article tax on the next $1,600.
No yearly value-based tax. Many counties charge a flat wheel tax with registration.
Buying a car in Tennessee: one-time tax
Tennessee sales/use tax — 7%, plus local sales tax where you live. Your trade-in is subtracted before tax.
The local option rate (up to 2.75%) applies to the first $1,600. A state single-article tax of 2.75% applies to $1,600–$3,200. Trade-in credit applies (like-kind).
Registration and due dates
Registration is about $26.50–$29 a year plus any county wheel tax. A title costs about $14.
No yearly car tax. Registration renews every year.
Cut what your car costs in Tennessee
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
Does Tennessee have a car tax?
No value-based car tax. Many counties charge a flat wheel tax.
How much sales tax on a $30,000 car in Tennessee?
About 7% state ($2,100), plus local tax on the first $1,600 (up to $44) and single-article tax ($44).
Can I deduct Tennessee car taxes on my federal return?
Generally no. Tennessee has no yearly value-based car tax, and flat registration fees cannot be deducted as personal property tax. Sales tax on the purchase can be deducted instead of income tax if you itemize.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.