Sales Tax Rates

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State sales tax paid on any vehicles purchased from a licensed dealer in any state is fully credited when applying for title. State sales tax is 7% of the purchase price, plus any additional fees charged by the dealership. For purchases in excess of $1,600, an additional State Tax of 2.75% is added up to a maximum of $44. Local sales tax is 2.25% and is capped at $36.00. Local collection fee is $1.

Paying Sales Tax When the Sales Price is Less Than 75% of Fair Market Value

If purchased from	Documentation Needed
Individual	form RV-F1301201(Rev. 5-00)
Lineal Relative (spouse, child, or grandparent);	form RV-F1301201(Rev. 5-00)
Corporation	Sales tax will be due on the highest value between the NADA Retail Value or Purchase Price.

Without the proper documentation sales tax will be calculated based on retail value as printed in the NADA value guide.

Sales tax is not normally due on individually owned vehicles already titled in the applicant's name when relocating from another state. Commercial vehicle applicants must present proof of tax previously paid on the vehicle. Taxes paid to other states will be credited to local liability.

Forms and sample letters are also available by calling 423/209-6525 or by email request.

Also, when visiting the office please consider donating a dollar to the State Organ Donor Awareness Program.