Paying Tennessee car tax is unavoidable, no matter where in Tennessee you live or where you buy your car. While paying taxes on a major purchase like a vehicle is significant, it creates a steady stream of income to offset the expenses of maintaining state motorways.
Calculating what you would pay the state of Tennessee for state auto sales tax is relatively straightforward. It applies to all road-vehicles, purchased new or used, from private parties or from an auto dealer. All sales are subject to the standard Tennessee sales tax rate of 7 percent on the dollar. In addition to the state tax, local taxes can be assessed as well. Cities throughout the state have the option of imposing local taxes which can range from 1.5-2.75% depending upon the city and county you live in. A listing of the local tax rates for cities in Tennessee can be found on the state's Department of Revenue website. For consumers who purchase a vehicle outside of Tennessee, for example, a car purchased on eBay from a seller in another state, a 'use tax' is assessed, equal to the regular sales tax rate.
Although they don't have a Tennessee car tax calculator, the Tennessee Department of Revenue has a detailed website where Tennessee residents can find pertinent information about applicable taxes when purchasing a vehicle. There are some cases that warrant exemptions from automobile taxes, such as cars registered in the state of Tennessee to active duty military or veterans, or in the case of transfer of title between ex-spouses due to divorce. For specific details on these exemptions and for more clarity on Tennessee sales and use tax, read through the Sales and Use publication.
For additional information on Tennessee auto sales tax, visit the Tennessee Department of Revenue website.