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Bill of sale · Tennessee

Tennessee Bill of Sale

Tennessee's county clerks run the show, the tax caps itself at $88 past the first $3,200, and bargain deals below 75% of book trade the bill of sale for a sworn affidavit. Here's how the pieces fit.

The Tennessee answer

One clerk, one visit — and one affidavit for bargains.

The buyer’s single stop is the county clerk: title, tax, registration, and wheel tax together. The state’s price-policing works differently than most — instead of taxing book value, Tennessee requires the sworn Affidavit of Non-Dealer Transferwhenever the price falls below 75% of NADA clean trade-in (or the vehicle is a gift), putting both parties’ signatures behind the number. A bill of sale remains the receipt that backs it all up.
No state form exists
Build a Tennessee bill of sale — free, with photos
The price record that squares with the affidavit when the deal was genuinely below book.
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The $88 ceiling

Tennessee's tax gets cheaper as the car gets dearer.

Work an example: a $10,000 truck owes 7% state ($700), the local option on its first $1,600 (up to $44), and the single-article 2.75% on the $1,600–$3,200 slice ($44) — everything beyond $3,200 rides tax-free except the state’s 7%. That $88 combined ceiling is why Tennessee’s effective rate falls as prices climb, the mirror image of luxury-tax states. Record the honest price, bring the affidavit if the deal is a genuine bargain, and the clerk handles the math.

Not legal advice. Verified against Tennessee DOR and county clerk sources in July 2026 — official links in our 50-state requirements table.
Volunteer questions

Tennessee specifics, answered.

Does Tennessee require a bill of sale?

Not for a standard sale — the assigned title suffices, and the state publishes no bill of sale form. Tennessee's signature document is instead the Affidavit of Non-Dealer Transfer (RV-F1301201), required when the vehicle is a gift or sold below 75% of NADA clean trade-in value. Everything gets processed by your county clerk, who collects tax, title, registration, and the county wheel tax in one transaction.

How does Tennessee's three-layer vehicle tax work?

State 7% applies to the full price. Then the local option tax (up to 2.75%) applies only to the first $1,600, and the state single-article tax of 2.75% applies to the $1,600–$3,200 slice. Net effect: the local-plus-single-article layers max out at $88 combined on any vehicle over $3,200 — so the marginal tax on an expensive car is just the 7%.

Are family transfers taxed in Tennessee?

Qualifying ones aren't: transfers between spouses, siblings, and lineal relatives (parents, grandparents, children, grandchildren and their spouses) are tax-exempt — documented by the same non-dealer affidavit, signed by both giver and receiver.

Does the car need an emissions test to sell in Tennessee?

Not anymore. Tennessee ended vehicle emissions testing in early 2022 — the five state-run county programs closed that January, and Nashville's own program wrapped up in February. A change plenty of older guides still miss. No notarization is required for the title assignment or a bill of sale either; the county wheel tax is the only variable to check with your clerk.