Buying a car in Tennessee
Every figure below is sourced to Tennessee’s own revenue or motor vehicle publications and dated. Estimates only.
Auto loan calculator
The real out-the-door number — including whether your state credits your trade-in against the sales tax.
Auto lease calculator
Money factor, residual, and the payment — taxed by your state's actual method, since some states tax a lease's full value upfront instead of each payment.
Loan payoff calculator
What paying extra actually saves you — in interest and in months — on a car loan, a personal loan, or anything else that amortizes.
0% APR vs. cash rebate
Which dealer offer actually costs less over the life of the loan, and the rate at which they tie.
Personal loan calculator
Payment, total interest, and the effective APR once an origination fee is deducted from what actually reaches your account.
Debt consolidation calculator
Whether one loan actually beats paying your existing debts off as they are — measured against the best you could do without consolidating.
Auto refinance calculator
Whether refinancing your car loan is worth it — including whether a lower payment is being bought with a longer term on a depreciating asset.
Lease vs. buy a car
The same car both ways over the same months, with the resale value credited to the buyer — the part most comparisons leave out.
Tennessee at a glance
- State sales tax
- 7%
- Local tax is added on top in most states — treat this as a floor.
- Trade-in credit
- Reduces your tax
- You are taxed on the price less your trade-in allowance.
- Dealer doc fee
- Not confirmed
- We have not confirmed a cap for this state, so we do not claim one.
- Title and registration
- $26.50
- $26.50 registration.
Local tax in Tennessee
Tennessee's vehicle tax is three-layered and is NOT a single combined percentage. The 7% state rate applies to the entire price. The county local option rate applies ONLY to the first $1,600 (2.25% in Davidson County; the statutory local maximum is 2.75%). A state 'single article' tax of 2.75% applies only to the portion from $1,600.01 to $3,200. Above $3,200 nothing further accrues, so the marginal rate on the rest of the price is just the 7% state rate. Document and prep fees are part of the taxable price but 'should not result in additional local tax if the sales price of the vehicle is in excess of the local maximum single article amount.' Separately-stated title fees, finance charges, GAP and insurance are excluded; manufacturer rebates are NOT.