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.
- Vehicle sales tax
- 7%
- Tennessee state sales/use tax on motor vehicles is 7% of the purchase price (less trade-in value). On top of the state rate: a local sales tax of 2.25% applies to the first $1,600 of the price (capped at $36, rate varies by county/city up to 2.75%), plus a state single-article tax of 2.75% on the portion of the price between $1,600 and $3,200 (capped at $44). Trade-in credit IS allowed — tax is computed on price less the value of any vehicle traded in. (Knox County Clerk official calculator: "State Sales Tax is 7% of purchase price less total value of trade in"; TN Dept of Revenue VTR-34/VR-34.)
Sales tax: source checked · 2026-Q2 Official source
- Annual registration fee
- ~$29/yr
- $29 is the base STATE registration fee for a private passenger automobile (confirmed by Knox County Clerk and Nashville.gov, both listing $29 "Registration"; the state standard plate fee per VR-4 is $26.50). Renewed annually. Total varies substantially by county due to local "wheel tax" (roughly $0 to over $100; e.g., Davidson/Nashville $55, Shelby $50-75). EVs and hybrids pay extra annual road-use fees (hybrid +$100, full EV +$200). Flat-rate structure for standard passenger cars (not weight- or value-based).
Registration fee: source checked · 2026-Q2 Official source
- Vehicle property tax
- No vehicle property tax
- Tennessee does not levy an annual ad valorem / personal-property tax on privately owned passenger vehicles; only business tangible personal property (including business-use vehicles) is subject to personalty tax.
Vehicle property tax: source checked · 2026-Q2 Official source
- State inspection
- Not required
- No statewide periodic safety inspection exists, and the vehicle emissions testing program ended statewide on January 14, 2022, after EPA approval of Tennessee's revised air-quality plan, so no recurring inspection is required.
Inspection rule: source checked · 2026-Q2 Official source
- Title fee
- ~$11
- One-time fee at purchase. Amount may vary.
- Example: $35,000 vehicle
- Sales tax: $2,450
- + $29/yr registration + no 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 7%. On a $35,000 vehicle, that's roughly $2,450 due at the time of purchase — in addition to the dealer's price.
After the purchase, Tennessee charges an estimated $29 per year to register the vehicle. $29 is the base STATE registration fee for a private passenger automobile (confirmed by Knox County Clerk and Nashville.gov, both listing $29 "Registration"; the state standard plate fee per VR-4 is $26.50). Renewed annually. Total varies substantially by county due to local "wheel tax" (roughly $0 to over $100; e.g., Davidson/Nashville $55, Shelby $50-75). EVs and hybrids pay extra annual road-use fees (hybrid +$100, full EV +$200). Flat-rate structure for standard passenger cars (not weight- or value-based).
Tennessee does not impose a personal property tax on vehicles — which is a meaningful advantage over states that do, where owners can pay 0.5%–2% of the vehicle's value annually.
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 7%. On a $35,000 vehicle that works out to roughly $2,450 at the time of purchase. Tennessee state sales/use tax on motor vehicles is 7% of the purchase price (less trade-in value). On top of the state rate: a local sales tax of 2.25% applies to the first $1,600 of the price (capped at $36, rate varies by county/city up to 2.75%), plus a state single-article tax of 2.75% on the portion of the price between $1,600 and $3,200 (capped at $44). Trade-in credit IS allowed — tax is computed on price less the value of any vehicle traded in. (Knox County Clerk official calculator: "State Sales Tax is 7% of purchase price less total value of trade in"; TN Dept of Revenue VTR-34/VR-34.)
How much is vehicle registration in Tennessee?
The estimated annual vehicle registration fee in Tennessee is around $29 per year. $29 is the base STATE registration fee for a private passenger automobile (confirmed by Knox County Clerk and Nashville.gov, both listing $29 "Registration"; the state standard plate fee per VR-4 is $26.50). Renewed annually. Total varies substantially by county due to local "wheel tax" (roughly $0 to over $100; e.g., Davidson/Nashville $55, Shelby $50-75). EVs and hybrids pay extra annual road-use fees (hybrid +$100, full EV +$200). Flat-rate structure for standard passenger cars (not weight- or value-based).
Does Tennessee have a vehicle property tax?
No. Tennessee does not impose an annual personal property tax on vehicles. Tennessee does not levy an annual ad valorem / personal-property tax on privately owned passenger vehicles; only business tangible personal property (including business-use vehicles) is subject to personalty tax.
Is a vehicle inspection required in Tennessee?
No. Tennessee does not require a state vehicle inspection. No statewide periodic safety inspection exists, and the vehicle emissions testing program ended statewide on January 14, 2022, after EPA approval of Tennessee's revised air-quality plan, so no recurring inspection is required.
Other states
Get the car ownership cost checklist
A free, plain-English guide to every cost you'll face owning a car — plus occasional updates when state registration fees or tax rules change. No spam. Unsubscribe anytime. We never share your email.