Tennessee Car Sales Tax Calculator – Fast, Free & Accurate

How Car Sales Tax Works in Tennessee

When you buy a car in Tennessee—whether new or used—you pay two layers of tax:

1. State Tax: A flat 7% applied to the net vehicle price (after trade-ins).
2. Local Tax: An extra tax set by each county, but only on the first $1,600 of the net price.

Example:

• If your car costs $30,000 and you trade in $7,000, the taxable amount becomes $23,000.
• State tax = $23,000 × 7% = $1,610
• Local tax = $1,600 × county rate (e.g., 2.25%) = $36
• Total = $1,646

Without a calculator, that’s a lot of math to keep straight.

Why Use the Tennessee Car Sales Tax Calculator?

The calculator takes the guesswork out of estimating your tax bill. You don’t need to worry about formulas or local tax caps—it does the heavy lifting for you. Here’s what it covers:

• Vehicle Price Input: Enter the purchase price of the car.
• Trade-in Value: Subtracts your trade-in amount, lowering your taxable price.
• County Selection: Choose your county, and the calculator automatically applies the correct local tax rate.
• Instant Breakdown: See your taxable amount, state tax, local tax, and total tax in clear dollar amounts.

This tool is especially handy if you’re shopping around and want to compare how much tax you’d owe in different counties.

Step-by-Step: How to Use the Calculator

Using the Tennessee Car Sales Tax Calculator is simple:

1. Enter Vehicle Price – Example: $30,000.
2. Enter Trade-In Value – Example: $7,000.
3. Select County – Example: Davidson County.
4. Click “Calculate Tax.”
5. View your results instantly: taxable amount, state tax, local tax, and total.

You can also hit “Reset” to start fresh with new numbers.

County Tax Rates Included in the Calculator

Different Tennessee counties have slightly different local tax rates. Here are some of the most common ones:

• Davidson County (Nashville) – 2.25%
• Hamilton County (Chattanooga) – 2.25%
• Knox County (Knoxville) – 2.25%
• Rutherford County (Murfreesboro) – 2.75%
• Shelby County (Memphis) – 2.25%
• Williamson County (Franklin) – 2.75%

The calculator makes sure you’re applying the right rate automatically.

Benefits of Using This Calculator

• Saves Time: No manual math, no confusion.
• Increases Accuracy: Avoids common mistakes with tax caps and county rates.
• Helps Budgeting: Know the true cost of your car before signing the deal.
• Works for Everyone: Whether you’re buying new, used, or trading in a vehicle.