Tennessee Title Transfer in a Private Sale: County Clerk Steps and Sales Tax

In Tennessee you title a privately bought car at your county clerk's office, not a state DMV, and you pay sales tax there even though the seller is just a neighbor. Bring the title the seller signed over, an odometer disclosure if the car needs one, a photo ID and proof of residency, then budget 7 percent state tax on the full price plus a capped local and single-article tax on the first $3,200. The Department of Revenue treats a private car sale as taxable unless it fits a narrow family or gift exception.

That last part surprises people, because most casual sales between two people are exempt. A car isn't. I read the Department of Revenue's titling pages and its June 2025 county clerk tax manual on October 16, 2026, and the manual says plainly that occasional sales of motor vehicles are pulled into the definition of "business," which makes them taxable.

What to bring to the county clerk

The Department of Revenue's "Titling a Vehicle" page keeps the used-car list short: proof of identification and proof of residency, a valid certificate of title, an odometer disclosure statement if applicable, and a copy of your current registration if you are moving a plate you already own onto this car. Clerks run the counter, so hours and appointment rules change from county to county. In Nashville, the Davidson County Clerk's title and registration page says you need a government photo ID, and two proofs of residency if that ID wasn't issued by Tennessee.

Since that checklist talks about moving your own registration, plan on the seller keeping their tag. Driving home on the seller's plate "just until Monday" is a bad bet for both of you.

On mileage, federal rules in 49 CFR 580.17 require a disclosure for model year 2011 and newer vehicles until they are 20 years old, while 2010 and older vehicles are already exempt. So a 2016 Altima needs the odometer filled in properly, and a 2009 truck generally doesn't. Check that the title number matches the dash before you sign.

How the sales tax is figured

Revenue's County Clerk Tax Manual (June 2025 edition) breaks it into three pieces. The 7 percent state rate applies to the entire price. Your local option rate, which cannot exceed 2.75 percent, applies only to the first $1,600. Then a state single-article tax of 2.75 percent applies to the slice between $1,600.01 and $3,200. The manual's own example uses Davidson County at 2.25 percent local.

So on a $9,000 private sale in Davidson County, the clerk would figure $630 state, $36 local and $44 single-article, about $710 total. In a county at the 2.75 percent local cap it would be $718. That is before registration and the clerk's title fees, and we couldn't find a statewide title fee on a Revenue page we could load, so ask your clerk for the exact total.

Watch the price line. If the price on the paperwork is under 75 percent of the car's value in a pricing guide such as NADA, the manual says the seller and buyer must file the Affidavit of Non-Dealer Transfer. Tax is owed on what you actually paid, but if that affidavit or an appraisal isn't provided, tax is due on 100 percent of fair market value. Lowballing the price on the title to save $100 can end with you paying tax on more than you spent.

Family transfers, gifts and what they need

Revenue's taxation page lists the exceptions: transfers between spouses, siblings and lineal relatives (parents, children, grandparents, great-grandparents and their spouses in some cases), divorce transfers, and true gifts with nothing given in return. Gifts and family transfers need the same Affidavit of Non-Dealer Transfer. A "gift" where the cousin pays you $2,000 cash later is a sale, and the manual says unsupported gift claims can be assessed use tax.

Registration costs, emissions and red tags

Registration and local wheel taxes vary by county. Davidson County's fee page, last updated February 4, 2026, lists $29 registration plus a $55 wheel tax for a private passenger car, $87 total, or $91 with a new plate, with an extra $100 for hybrids and $200 for fully electric cars. Emissions testing is gone; Metro Public Health says Davidson stopped requiring it on February 5, 2022. If the title has a problem you are trying to fix, Revenue's temporary tags page describes a $10 Temporary Operation Permit through the clerk, but salvage vehicles can't get one.

Before you hand over cash

Tennessee's process checks the title, not the car's life story. Match the VIN on the dash and door jamb to the paperwork (our VIN verification for title transfer guide shows where to look), then run it through NMVTIS for title brands. A rebuilt or salvage brand changes everything; see our Tennessee salvage and rebuilt title rules. Car titled in another state? Read out-of-state title transfer and CARFAX first.

For the history itself, our CARFAX for private-party post walks through what shows up and what doesn't. CarVins resells official CARFAX and AutoCheck reports under license and isn't affiliated with CARFAX, AutoCheck or Experian. Recent checkout totals have been near $5.50 for a guest report, $4.50 for members and about $6.75 for both on one VIN, against the $39.99 to $44.99 people tend to pay retail, but confirm at checkout. A seller who only offers a printout and won't share the VIN is telling you something. CARFAX's report overview shows what a genuine one includes.

Sources

• Tennessee Department of Revenue: Titling a Vehicle, Taxation of Car and Boat Sales, and the County Clerk Tax Manual, June 2025 (tn.gov/revenue; the site fails intermittently for us, so search those titles)
• Davidson County Clerk: Vehicle registration fees
• Metro Public Health: Davidson County vehicle inspection program
• eCFR: 49 CFR 580.17 odometer disclosure exemptions
• NMVTIS (U.S. Department of Justice)
• CARFAX vehicle history reports