Enter the vehicle price, sales tax rate, and trade-in value into the calculator to determine your total sales tax in Tennessee.

Vehicle Sales Tax Calculation Formula

The following formula is used to calculate the total sales tax for a vehicle purchase in Tennessee.

Total Sales Tax = (Vehicle Price - Trade-In Value) * (Sales Tax Rate / 100)

Variables:

  • Vehicle Price is the price of the vehicle before any trade-ins or rebates ($)
  • Trade-In Value is the value of the trade-in vehicle, which is subtracted from the vehicle price ($)
  • Sales Tax Rate is the percentage of tax applied to the taxable amount (%)

To calculate the total sales tax, subtract the trade-in value from the vehicle price to get the taxable amount. Then multiply the taxable amount by the sales tax rate.

What is Vehicle Sales Tax Calculation?

Vehicle sales tax calculation refers to the process of determining the total amount of tax owed on the purchase of a vehicle. This involves understanding the vehicle price, any applicable trade-in value, and the sales tax rate for the state of Tennessee. Accurate vehicle sales tax calculation is essential for budgeting and financial planning when purchasing a vehicle.

How to Calculate Vehicle Sales Tax?

The following steps outline how to calculate the vehicle sales tax using the given formula: