Tennessee Title & Registration Guide

State Sales/Use Tax

Sales of motor vehicles, trailers, OHVs, and boats are subject to 7.0% sales or use tax on the full purchase price. Tax is collected at the time of titling at the County Clerk's office.

Trade-In Credit

Credit is allowed for trade-in of like kind and character, if the vehicle is titled in the name of the person trading it in. Actual credit must be given on the invoice or other sales document.

Out-of-State Credit

Credit is allowed for sales or use tax paid in another state if the new resident provides proof of tax payment.

Tax Exemptions

• ●New residents: Exempt from use tax on personal motor vehicles or manufactured homes brought into Tennessee
• ●Nonresidents: Exempt if vehicle is removed from Tennessee within 3 days of purchase (3-Day Affidavit required)
• ●Gift transfers: Transfers involving certain relatives are tax exempt (Form RV-F1301201)
• ●Active-duty nonresident military: Exempt from sales and use tax (copy of official orders required)
• ●Former POWs and disabled veterans: Exempt from sales tax, registration fee, and local motor vehicle privilege tax
• ●Interstate commerce carriers: Vehicles 16,000+ lbs GVWR used principally in interstate commerce (Form RV-F1300401)
• ●Boats (new residents): Exempt if used solely for personal use, fair market value $10,000 or less, and registered in previous state

Local Collection Fee

A local collection fee of $1.00 applies for each transaction where sales tax is collected by a County Clerk; $2.00 on the isolated sale of boats and other vessels.

Perfecting a Lien

Liens are perfected upon submission of an Application for Noting of Lien, Duplicate Title, or Multipurpose Use (RV-F1315201) with the properly assigned title/MSO, a copy of the lien instrument, and applicable fees. A conditional sales contract is not acceptable as a lien instrument unless previously recorded and merely being assigned.

Lien Perfection Timing

Lien is perfected as of the date of its creation if filed within 20 days; otherwise, lien is perfected as of the date of delivery to the County Clerk.

Second Lien

The title is not necessary when noting a second lien. The name and address of the second lienholder must be indicated in the "Second Lienholder" section of the application.

Assignment of Lien

A lienholder may assign the title to another person without the consent of the owner; however, the owner must be notified in writing. The new lienholder may apply for a title showing their lien.

Garagekeeper's Lien

A garagekeeper may recover the costs of repair and/or storage by selling a vehicle if payment is not made within 30 days after completion of repairs. All owners/lienholders must be notified that the vehicle must be claimed within 10 days or the vehicle will be sold at auction. The purchaser may obtain title upon submission of a Certification of Sales Under Special Conditions (RV-F1312101), a Vehicle Information Request (RV-F1313801), certified mail receipts, a copy of the advertisement, an itemized statement of fees, and applicable title and registration fees.

Electronic Lien & Title (ELT)

While Tennessee does not participate in an ELT Program, please see the Dealer EZ Tag Program in the Registration section for electronic submission capabilities.

Joint Ownership

When names are joined by "and" — all signatures are required for transfer. If names are joined by "or" or "and/or" — one signature is required.

Transfer Upon Death

A surviving spouse may apply for title upon submission of a copy of the death certificate. No fee if application is made within the first year of the death of the spouse.

• ●Surviving spouse may transfer by assigning the title and providing a copy of the death certificate
• ●No Will or Will not probated: certified death certificate and Affidavit of Inheritance (RV-F1310501) required. A small estate affidavit may be used in lieu
• ●Will probated: Letters of Testamentary required; Administrator/Executor assigns the title

Power of Attorney

A Power of Attorney for Vehicle Transactions (RV-F1311401) or any notarized Power of Attorney may be used to appoint an agent to complete vehicle transactions. A secure Power of Attorney is required to disclose mileage. For motor carriers, a Motor Carrier Power of Attorney (RV-F1309101) is required if someone other than a company representative is completing the application.

Limited Assignment Space

A Certificate of Title Extension Form may be used by licensed dealers to transfer a vehicle when all assignment spaces on the back of the title are exhausted. A dealer's reassignment form from another state may be used on a title from that state. Individuals must title in their name prior to transfer.

Requirements

The purchaser of a repossessed vehicle must submit:

• Application for Noting of Lien, Duplicate Title, or Multipurpose Use (RV-F1315201)
• The properly assigned title
• A Certification of Sales Under Special Conditions (RV-F1312101)
• Applicable fees

When Lien Is Not on Title

If the lien is not shown on the title, the Certification must be submitted with a true copy of the lien instrument and a notice of sale, bill of sale, or auction sales receipt. Upon presentation of proper evidence of lien, the lienholder must apply for title in the owner's name and be shown as lienholder.

Expiration

Registrations expire on the last day of the month, one year from date of issue. Dealer plates expire in May. Commercial fleets expire in the month designated by the Commissioner.

Renewal

Renewal notices are sent to registered owners. Online renewal is available in most counties. Some counties charge an additional fee if renewing online. Online boat renewal is available for an additional processing fee.

Military Registration

Resident military personnel stationed outside the continental U.S. are given a 30-day grace period from date of return to renew registration. Active military may register through the local County Clerk.

If home of record is Tennessee but there is no physical presence, may apply to any Tennessee County Clerk with a current Leave and Earnings Statement (LES), stationing orders, title from foreign state, registration receipt, evidence of sales tax paid, applicable fees, and copy of security agreement if applicable.

Active-duty nonresident military personnel stationed in Tennessee are exempt from sales and use tax. A copy of official orders is required. Former POWs and veterans/service members with a service-connected disability who receive a U.S. Veterans Affairs grant are exempt from sales tax, registration fee, and local motor vehicle privilege tax.

Nonresident Plates

New residents must surrender out-of-state plates when applying for Tennessee registration.