Can I round up to 9.75%?
No. Here's the formula from the Tennessee Car Tax Calculator: 7% State Tax on the sale price minus the trade-in. PLUS 1.5% to 2.75% Local Tax on the first $1600 of the purchase. PLUS 2.75% Single Article Tax from the second $1600 up to $3200. PLUS 9.75% Contract Tax on warranty and maintenance. Is the local tax based on the vehicle price? No. It's calculated from the first $1600 of the purchase multiplied by the local rate of your home address. |
How does Tennessee calculate car tax?
State, local, and single article tax amounts are added up to calculate the total car tax.
ADVERTISEMENT
|
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. |