- The sales tax in Tennessee, as of 2011, is seven percent of the item's purchase price. This applies to all items, including vehicles. For example, if you buy a truck for $10,000, the sales tax would amount to $700. Car dealers may not always mention the sales tax when advertising the price of a car, even though they are responsible for withholding it and paying it to the Tennessee Department of Revenue.
- Tennessee also allows local authorities to charge an additional sales tax on the first $1,600 of the purchase price of motor vehicles. As of the time of publication, this local sales tax ranges from 1.50 percent to 2.75 percent, depending on where you live in the state. For example, car buyers who live in Woodbury must pay 1.75 percent in local sales tax, while those who live in Riddleton must pay 2.75 percent. For a vehicle that costs more than $1,600, you would have to pay an extra $28 in Woodbury and $44 in Riddleton.
- As of the time of publication, buyers of motor vehicles must also pay an additional state single-article tax of 2.75 percent on the sales price of a motor vehicles priced above $1,600, up to $3,200. For example, if you purchase a vehicle for $2,000, you would have to pay single-article tax on the additional $400, which would amount to $11. The maximum amount you will pay in single-article tax is $44.
- Unfortunately for car buyers, Tennessee's annual sales tax holiday weekend does not apply to motor vehicles. This holiday takes place annually, from the first Friday of August to to the following Sunday night. During those three days certain items are tax-free, include clothing, computers and school and art supplies -- but not cars.
Tennessee Sales Tax
Local Sales Tax
Single-Article Tax
Sales Tax Holiday
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