Car ownership costs in Tennessee
What it costs to own a car in Tennessee beyond the sticker price — sales tax, annual registration, vehicle property tax, inspection requirements, and title fee.
Estimated — not yet source-verified.Estimated — not yet source-verified. This figure is a knowledge estimate we have not yet confirmed against the official source, so this page is not indexed. Treat it as a rough guide only and verify with your state DMV or department of revenue.
- Vehicle sales tax
- 0.07%
- Tennessee state sales tax on vehicles is 7%; local taxes add 1.6%–2.75%. Trade-in credit reduces taxable amount.
- Annual registration fee
- ~$24/yr
- Annual registration ~$24 for passenger vehicles.
- Vehicle property tax
- Yes — annual tax on vehicle value
- Tennessee counties and cities levy an annual personal property tax on vehicles based on market value; typically $50–$200/year.
- State inspection
- Not required
- Tennessee does not require periodic vehicle inspections.
- Title fee
- ~$11
- One-time fee at purchase. Amount may vary.
- Example: $35,000 vehicle
- Sales tax: $25
- + $24/yr registration + annual property tax
How state fees affect your car's true cost in Tennessee
When you buy a vehicle in Tennessee, the first state cost you'll face is the sales tax of 0.07%. On a $35,000 vehicle, that's roughly $25 due at the time of purchase — in addition to the dealer's price.
After the purchase, Tennessee charges an estimated $24 per year to register the vehicle. Annual registration ~$24 for passenger vehicles.
Tennessee also levies an annual personal property tax on vehicles. The amount depends on your vehicle's assessed value and your local jurisdiction. Tennessee counties and cities levy an annual personal property tax on vehicles based on market value; typically $50–$200/year. This recurring cost can add hundreds of dollars per year for newer or more expensive vehicles.
Tennessee does not require a state vehicle inspection, saving the time and cost of periodic safety or emissions testing.
Calculate your full 5-year ownership cost in Tennessee
The TCO calculator pre-fills Tennessee's sales tax and registration fee. Add your purchase price, loan terms, fuel type, and insurance to see the complete picture.
Open TCO calculatorFrequently asked questions
What is the car sales tax in Tennessee?
The vehicle sales tax rate in Tennessee is 0.07%. On a $35,000 vehicle that works out to roughly $25 at the time of purchase. Tennessee state sales tax on vehicles is 7%; local taxes add 1.6%–2.75%. Trade-in credit reduces taxable amount.
How much is vehicle registration in Tennessee?
The estimated annual vehicle registration fee in Tennessee is around $24 per year. Annual registration ~$24 for passenger vehicles.
Does Tennessee have a vehicle property tax?
Yes. Tennessee levies an annual personal property tax on vehicles. The rate varies by locality and vehicle value. Tennessee counties and cities levy an annual personal property tax on vehicles based on market value; typically $50–$200/year.
Is a vehicle inspection required in Tennessee?
No. Tennessee does not require a state vehicle inspection. Tennessee does not require periodic vehicle inspections.
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