Tennessee looks expensive at 7 percent but the local portion is capped. Local tax applies only to the first $1,600, so it maxes out at $44. There is also a state single article tax of 2.75 percent on the slice between $1,600 and $3,200, another $44. On a $35,000 car in Nashville the total is about $2,530, not the $3,238 a flat 9.25 percent would suggest.
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Sources
Statute: Tenn. Code Ann. § 67-6-202, § 67-6-702
Tennessee Department of Revenue, Single Article Tax Rates “The local tax is applied only to the first $1600 of the sales price of any single article of tangible personal property in most local jurisdictions. ... The state single article tax rate of 2.75% is applied to the amount of the sales price of a single article of tangible personal property between $1,600 and $3,200.”
Tennessee Automotive Dealership Manual “A person in Nashville, Tennessee buys a new car for $35,000. Nashville’s local sales tax rate is 2.25%. ... State and Local Tax Due $2,450 / $44 / $36 Total Tax Due $2,530”
Last verified: September 21, 2026.
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Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.