Do you pay sales tax when buy a car from private seller in Tennessee?

Yes, in Tennessee, you typically have to pay sales tax on the purchase price of a car, even if you buy it from a private seller. The buyer is responsible for paying sales tax when purchasing a vehicle, regardless of whether it is from a dealer or a private individual.

Specifically, the sales tax is due on the purchase price of the vehicle (excluding any fees, such as a transfer or registration fee) and is calculated based on the county where the vehicle will be registered. The current state sales tax rate in Tennessee is 7%, and there may be additional local taxes or fees that could also apply. You can find more details about sales tax on vehicle purchases in Tennessee from the Tennessee Department of Revenue website or by consulting with a local tax professional.