Tennessee Vehicle Bill of Sale
Tennessee titles a used car at the county clerk and taxes the stated price under its single-article rule.
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Introduction
A Tennessee vehicle bill of sale records a private-party car sale, the parties, the vehicle, the price, the odometer reading, and the as-is terms. Tennessee does not publish an official general bill of sale form, and the Department of Revenue does not list a bill of sale among the documents needed to title a used vehicle. What conveys and titles a standard used car is the assigned certificate of title, which you surrender to your local county clerk, not a statewide DMV, with the Department of Revenue as the title authority. The detail that sets Tennessee apart is the tax. Sales and use tax is assessed on the total sales price, and under the single-article rule the 7 percent state tax applies to the full price, the local option tax applies only to the first $1,600 of the sales price, and an additional 2.75 percent state single-article tax applies to the portion of the price from $1,600 up to $3,200. Because the stated price drives the tax, a gift, below-market, or lineal-relative transfer must be documented on the Department of Revenue Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats (Form RV-F1301201) or use tax is assessed on fair market value. A private-sale bill of sale is not notarized and is not required to title the vehicle. DocDraft drafts a Tennessee vehicle bill of sale from your facts, with attorney review available.
Key Things to Know
- 1
There is no official Tennessee general bill of sale form, and the Department of Revenue does not list a bill of sale among the documents required to title a used vehicle. The closest state form is the Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats (Form RV-F1301201), which captures the total sales price and fair market value but is not a general-purpose bill of sale.
- 2
A Tennessee private-sale vehicle bill of sale does not need to be notarized. Tennessee titles a vehicle by surrendering the assigned certificate of title, and the title assignment itself does not require notarization. The Affidavit of Non-Dealer Transfers is signed by seller and purchaser under the penalties of perjury with signature and date lines only, with no notary block on the form.
- 3
Odometer disclosure is required where applicable as part of titling a used vehicle. Tennessee lists an odometer disclosure statement, if applicable, among titling documents, following the federal baseline under 49 CFR 580. The disclosure is part of the title-transfer process, not the bill of sale itself.
- 4
Tennessee assesses sales and use tax on the total sales price under its single-article rule. The 7 percent state tax applies to the full price, the local option tax applies only to the first $1,600 of the sales price, and an additional 2.75 percent state single-article tax applies to the portion of the price from $1,600 up to $3,200 (Tenn. Code Ann. 67-6-228). Confirm the current local rate and single-article figures with the Department of Revenue.
- 5
You title and register the vehicle at your local county clerk's office, not a statewide DMV. Current Tennessee residents obtain titles for used vehicles from the county clerk, with the Department of Revenue as the title authority. Bring the assigned certificate of title and the odometer disclosure statement, if applicable.
- 6
A bill of sale is optional and supplementary for a standard private sale in Tennessee. The assigned certificate of title transfers ownership. A Department of Revenue Affidavit of Non-Dealer Transfers is required instead only for gift, low-selling-price, or lineal-relative transfers, to document the consideration for use-tax purposes.
- 7
The standout Tennessee rules are the county-clerk titling path and the single-article tax keyed to the stated price. Because a below-market or gift transfer is taxed on fair market value unless documented on Form RV-F1301201, the price stated on the transfer document directly drives what you owe at the county clerk window.
Key decisions before you file
Before you file a Bill of Sale in Tennessee, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.
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Tennessee Requirements for Bill of Sale
No Official Tennessee Form, Title Assignment Conveys the Vehicle
Tennessee does not publish an official general bill of sale form, and the Department of Revenue does not list a bill of sale among the documents required to title a used vehicle. The assigned certificate of title transfers ownership. The closest state form is the Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats (Form RV-F1301201), used for gift, low-selling-price, or lineal-relative transfers.
No Notarization Required
A Tennessee private-sale vehicle bill of sale does not need to be notarized, and the title assignment itself does not require notarization. The Affidavit of Non-Dealer Transfers is signed by the seller and purchaser under the penalties of perjury with signature and date lines only, and the form carries no notary block, so signatures of the buyer and seller are sufficient.
Vehicle Description and VIN
Identify the vehicle by VIN, year, make, model, body style, and color, and identify the seller and buyer by name and address, with the sale price and the date of sale.
Odometer Disclosure at Transfer
Tennessee lists an odometer disclosure statement, if applicable, among the documents to title a used vehicle, following the federal baseline under 49 CFR 580. The disclosure is captured in the title-transfer process rather than on the bill of sale. Confirm current exempt-vehicle rules with the Department of Revenue.
Single-Article Tax on the Stated Sales Price
Tennessee assesses sales and use tax on the total sales price. Under the single-article rule, the 7 percent state tax applies to the full price, the local option tax applies only to the first $1,600 of the sales price, and an additional 2.75 percent state single-article tax applies to the portion of the price from $1,600 up to $3,200 (Tenn. Code Ann. 67-6-228). Confirm the current local rate and single-article figures with the Department of Revenue.
Affidavit of Non-Dealer Transfers for Gift or Below-Market Sales
A gift, low-selling-price, or lineal-relative transfer must be documented on the Department of Revenue Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats (Form RV-F1301201), or use tax is assessed on fair market value. The form captures the total sales price and the fair market value, so the price you state on the transfer document directly drives the tax.
Title at the Local County Clerk
Title and register the vehicle at your local county clerk's office, not a statewide DMV. Current Tennessee residents obtain titles for used vehicles from the county clerk, with the Department of Revenue as the title authority. Bring the assigned certificate of title and the odometer disclosure statement, if applicable.
Documents to Bring to the County Clerk
Bring the assigned certificate of title, proof of identification and residency, the odometer disclosure statement, if applicable, and, for a gift, low-selling-price, or lineal-relative transfer, the Affidavit of Non-Dealer Transfers (Form RV-F1301201). Keep the bill of sale as supporting documentation of the price and the as-is terms.
Does your Bill of Sale need to be notarized in Tennessee?
Whether a Bill of Sale needs to be notarized depends on your state. Upload yours, pick your state, and get the current rule with the official source behind it, free and with no account. If yours does need a notary, online notarization is part of your DocDraft plan.
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