How does Tennessee calculate car tax? State, local, and single article tax amounts are added up to calculate the total car tax.
Can I round up to 9.75%?
Here's the formula from the Tennessee Car Tax Calculator:
7% State Tax on the sale price minus the trade-in.
1.5% to 2.75% Local Tax on the first $1600 of the purchase.
2.75% Single Article Tax from the second $1600 up to $3200.
9.75% Contract Tax on warranty and maintenance.
How do I calculate a Tennessee auto loan?
Use our Tennessee auto loan calculator.
What is service contract tax?
It's a tax on prepaid maintenance and extended warranties purchased in conjunction with a vehicle sale.
Single Article Tax limits do not apply to service contract taxes, therefore the full amount of the contract is taxed.
How do I enter my local rate into the Tennessee Car Tax Calculator?
Find your local rate using this map, and then use the input box above the results.