Tennessee used car dealer paperwork and sales tax guide
How Tennessee sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Tennessee dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Tennessee: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Tennessee deal.
Tennessee tax and fees at a glance
| Item | Tennessee |
|---|---|
| State tax | 7% state rate plus local tax |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Documentary fee | Part of the taxable amount |
| Service contract | Taxed |
| Starting title fee in DMS Apex | $14 |
How Tennessee sales tax is worked out
Tennessee: 7% state tax on the whole price (the trade-in comes off), the local option tax on the first $1,600, and the state's 2.75% single article tax on the next $1,600 (Auto Dealership Guide). The documentary fee and a service contract are taxed here; separately stated GAP is not. Type the local rate from the Department of Revenue map. Title fee starts at $14; the county's fee and registration are typed in the Tag Fee box. A service contract is taxed on its own at 7% plus the full local rate (the $1,600 limit and the single article tax do not apply to it). Rebates do not reduce the price in Tennessee.
Tennessee paperwork a dealer prints
DMS Apex prints these documents for a Tennessee deal, all in black and white:
- RV-F1317001 Odometer Disclosure
- Buyer's Order
- Buyers Guide
Step-by-step form guides
- RV-F1317001 Odometer Disclosure Statement: how to fill it out
This is general information, not legal or tax advice. Tennessee rules change: confirm current requirements with the Tennessee Department of Revenue.
Common questions
How much is sales tax on a used car in Tennessee?
7% state rate plus local tax. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Tennessee Department of Revenue.
Does a trade-in lower the tax in Tennessee?
Yes. In Tennessee the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Tennessee?
Yes. In DMS Apex the documentary fee is part of the taxable amount for Tennessee.
Does DMS Apex print Tennessee dealer forms?
Yes. It prints RV-F1317001 Odometer Disclosure, Buyer's Order, Buyers Guide.
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